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Q2 2025 Fine Wine Report

Champagne France wine cellar

Explore key trends in the Q2 2025 Fine Wine Market Report – from Trump’s proposed tariffs to Bordeaux En Primeur 2024, index performance, and standout wines like Chave Hermitage and Screaming Eagle. Discover where value and stability are emerging.

Executive summary

  • Trump’s proposed tariffs dominated headlines, yet the delayed implementation gave markets breathing room.
  • The Liv-ex 100 index declined 3% in Q2 but showed signs of levelling off by quarter-end.
  • Bordeaux En Primeur 2024 was met with weak demand driven by oversupply and collector preference for mature vintages.
  • Regional performance diverged, with Bordeaux and Burgundy leading declines, while Champagne showed signs of stabilisation.
  • Top-performing wines defied broader market trends, with double-digit gains from names like Chave Hermitage 2021, Château d’Yquem 2014, and Screaming Eagle 2012.
  • Fine wine remains in a correction phase, but select names, regions, and vintages continue to offer compelling investment opportunities.

The trends that shaped the fine wine market

Global markets adjust as tariff volatility eases

President Trump’s revival of protectionist trade policies set the tone for global markets in Q2. From January to April, the average U.S. tariff rate on imported goods like cars, steel, and aluminium surged from 2.5% to a century-high 27%, before easing to 15.8% in June.

While the March tariff threat initially triggered sharp volatility, the fallout was relatively short-lived. Early April brought a brief dip into bear territory for the S&P 500 on tariff fears. But with policy pauses and stronger-than-expected earnings – 78% of S&P companies beat forecasts – investor confidence returned. Equities in Europe and Asia rallied as well, with the FTSE 100 testing new highs. Corporate investment, especially in AI, remained robust despite political and fiscal uncertainty. 

This broader resilience helped buoy alternative assets like fine wine. While less liquid than stocks, fine wine saw continued interest from long-term investors. Crucially, there was no evidence of panic selling – a sign of confidence in the asset class’s underlying stability.

Telling signs of stability in the fine wine investment market

The pace of fine wine price declines slowed in the second half of the second quarter, although the market is not yet in full recovery mode. On average, fine wine prices as measured by the Liv-ex 100 index, dipped 3% in Q2 2025. The index has been in a freefall since September 2022, seeing only five minor upticks during this time. Meanwhile, the Liv-ex 50, which tracks the performance of the Bordeaux First Growth, has been in a consistent decline during the last 33 months.  

Still, the recent falls have been less pronounced, and prices for many of the index component wines have maintained their new levels without falling further. The market seems to be adjusting to the new environment, with participants showing greater acceptance of the status quo and reduced sensitivity to geopolitical noise. In Q2, demand even began to resurface, particularly from Asia, which has been notoriously quiet, and the U.S., which had initially retreated due to tariff fears.

Muted demand for Bordeaux En Primeur 2024 as market shifts for mature wines

With the market still absorbing past vintages and saturation setting in, enthusiasm for Bordeaux En Primeur 2024 was notably subdued. Despite reduced release prices, the wines often failed to offer compelling quality or value when compared to older vintages readily available on the secondary market.

Bordeaux’s structural challenges persist. Negociants remain overstocked and weighed down by rising bank interest, while many merchants lack the appetite or capital to buy for stock. Meanwhile, the once-crucial Chinese market remains largely dormant.

This muted campaign reflects a broader shift in buyer behaviour. Demand has tilted decisively toward mature wines with a track record of quality and drinkability. While the short-term appeal of buying young futures has faded for now, Bordeaux’s reputation for ageability and long-term value endures.

Fine wine vs mainstream markets in H1 2025

Fine wine vs mainstream markets

While mainstream equity markets swung between bear and bull phases in Q2, the fine wine market charted a notably more stable path. Fine wine prices declined modestly over the period, but without the sharp drops or rallies seen in the S&P 500, Dow Jones Industrial, or FTSE 100. The contrast, seen in the chart above, reinforces fine wine’s reputation as a lower-volatility asset during times of heightened macroeconomic and geopolitical uncertainty.

Importantly, this steady decline was not marked by panic selling or dramatic shifts. This reflects the market’s structural differences: lower liquidity, longer holding periods, and a collector-investor base that prioritises wealth preservation over short-term trading.

Moreover, beneath the surface, outliers and outperformers remain. Read on to discover where relative value has emerged, and which regions and producers have shown resilience – or even strength – so far this year.

Regional fine wine performance: year-to-date trends

The first half of 2025 has revealed consistent pressure across nearly all fine wine indices, with no region posting growth year-to-date. Yet the degree of decline varies.

Liv-ex fine wine regional indices

Bordeaux and Burgundy lead declines (-5.6%)

Both the Liv-ex Bordeaux 500 and Burgundy 150 have posted the steepest year-to-date losses among the major indices, each down 5.6%. For Bordeaux, this reflects tepid interest in younger vintages and a sluggish En Primeur campaign, coupled with a lack of support from Asia. Burgundy continues to correct from previous pricing spikes, as buyers recalibrate in search of better relative value.

Auction results defy the indices

While Bordeaux and Burgundy’s regional indices posted year-to-date declines of -5.6%, recent auction results tell a different story at the very top end of the market.

In June 2025, Christie’s held a landmark sale of the personal wine collection of billionaire collector Bill Koch, generating a record-breaking $28.8 million over three days. The sale drew global participation and intense bidding across 1,500 lots, each of which was sold. The standout was a 1999 Romanée-Conti Methuselah, which fetched an eye-catching $275,000.

The collection featured rare Bordeaux and Burgundy – the very categories currently under pressure in secondary market indices – yet buyer appetite was strong, and prices exceeded estimates across multiple lots.

Champagne shows relative stability

The Champagne 50 has held up better than most, down just 4.9% year-to-date, and was the only region to show positive month-on-month growth in June (+0.8%). While the broader category has cooled after a strong run, interest in top names remains, especially among collectors focused on prestige and scarcity. Indeed, many of Champagne’s top brands now represent the best entry point into the region in years. Prices have stabilised, and there are signs they will not fall any further, but might start to rise again. 

Broader weakness across other regions

  • Rest of the World 60 is down 5.0%, showing soft demand beyond the mainstay regions.
  • California 50, also down 5.6%, mirrors this trend and highlights ongoing sensitivity to U.S. economic and tariff concerns.
  • Italy 100 has dropped 3.3%, suggesting a more measured pullback, consistent with the region’s reputation for offering value and dependable quality.
  • Bordeaux Legends 40 and Rhone 100 are holding up best, with declines of only 2.6% and 2.5% respectively. This speaks to market confidence in mature Bordeaux and Rhône’s reputation for steady, value-driven performance.

best performing wine regions half 1 2025

As the fine wine market works through broader corrections, defensive regions – particularly Rhône and mature Bordeaux – are outperforming, while Burgundy and California remain under pressure. Champagne’s recent bounce may signal early signs of selective recovery. For investors, opportunities may lie in regions demonstrating resilience rather than those still working through valuation resets.

The best-performing wines so far this year

best performing wines half 1 2025

Despite broad declines across regional indices, a select group of wines delivered standout returns in H1 2025, highlighting the importance of producer reputation, scarcity, and vintage specificity in fine wine performance.

The Rhône leads driven by Chave

The top-performing wine was Domaine Jean Louis Chave’s 2021 Hermitage Rouge, which rose +36.8% in the first half of the year. This outperformance stands in stark contrast to the overall Rhône 100 index, which declined 2.5%. Over the last decade, prices for the brand are up 127% (compare its performance to other market benchmarks on Wine Track).

Domaine Jean Louis Chave Hermitage

Château d’Yquem 2014 and Château Suduiraut 2016 returned 25.7% and 23.9% respectively, bucking the downward trend in Sauternes. On a brand level, Yquem has risen 7% in the last six months and 3% in Q2; Suduiraut is up 11% in H1 2025. These results signal renewed collector appetite for premium dessert wines – particularly in top vintages where quality and longevity are indisputable – yet prices remain relatively low.

Prestige investment opportunities in Napa and Champagne 

The California 50 index fell 5.6%, but iconic Napa cult wine Screaming Eagle 2012 rose 24.4%, affirming the strength of globally recognised, ultra-luxury labels. Indeed, average prices for the brand rose 5% in H1 2025. Similarly, Pol Roger Sir Winston Churchill 2015 posted a 24.4% gain, demonstrating that top-tier Champagne continues to attract collectors even as the Champagne 50 index overall declined.

Burgundy and Tuscany standouts reinforce blue-chip strategies

Despite Burgundy’s broader correction, DRC’s La Tâche 2020 and Clos de Tart 2013 delivered 24.5% and 18.1% returns respectively. These names remain benchmarks of rarity and prestige. Meanwhile, Soldera Case Basse 2018 gained 14.3%, pointing to sustained momentum behind top Italian producers. In Q2 alone, prices for the Tuscan premium brand are up 11%; in H1, 16%. 

Soldera Montalcino fine wine performance

Investor takeaways

  • Market-wide declines don’t mean universal losses. Select wines not only held value but also delivered double-digit returns.
  • Rarity and recognisability remain key drivers. Names like Chave, Yquem, Screaming Eagle, and DRC continue to offer portfolio resilience.
  • Smart vintage selection pays. Wines from underappreciated years – like Canon 2014 – produced outsized gains relative to their pricing base.
  • Dessert wines are back on the radar. Contrarian plays in Sauternes may offer continued upside in H2 2025.

Brands to watch

Signs of a Champagne revival

After being the fine wine market’s standout performer in 2022, Champagne experienced one of the sharpest pullbacks during the broader market correction of 2023–2024. However, signals suggest the tide may now be turning again.

From peak to pause: A market in transition

Prices across the Champagne sector have fallen significantly from their highs, but the sell-off appears to have run its course. June marked a notable shift: Champagne was the first regional index to post positive month-on-month growth, rising +0.8%, a potential inflexion point after months of stagnation.

More importantly, price stability has returned. The sector’s recent performance suggests we may be entering a new phase of the Champagne investment cycle, where prices consolidate before a potential recovery.

Market data signals stabilisation

To test this trend, we analysed the 10 most recent vintages of the five most-searched “Grand Marque” Champagnes:

Of these 50 individual wines,

  • 43 have resisted their price declines,
  • 40 have remained stable for at least six months,
  • the indexes aggregating their vintages confirm this plateau.

Champagne fine wine indices

Notably, Dom Pérignon has shown the earliest and most sustained stabilisation, with its index bottoming out in November 2024. Krug Vintage and Taittinger Comtes de Champagne are the most recent to enter this stable phase, suggesting broader alignment across the category.

A new phase for Champagne?

This pattern of index symmetry and brand-level stabilisation is a clear signal that Champagne may be transitioning from correction to consolidation. Investor sentiment appears to be catching up to underlying fundamentals, with many of Champagne’s leading brands now offering compelling re-entry points. Liv-ex market share data supports this trend:year-to-date, Champagne has taken 12.4% of the market by value, up from an annual 2024 average of 11.8%, signalling that demand is returning. 

If this trend holds, Champagne could become one of the first major regions to re-enter positive growth territory, supported by brand power, vintage scarcity, and collector loyalty.

Q3 2025 market outlook: A pause before the pulse?

The third quarter – traditionally the quietest in the fine wine calendar – arrives amid a tentative calm. Following the volatility of Q2, Q3 is shaping up to be more subdued but not without potential catalysts.

Tariff watch

President Trump’s planned tariffs, originally slated for Q2, have now been delayed until August 1st. Markets have so far responded with a muted shrug, suggesting either tariff fatigue or confidence that negotiations may temper the final impact. But the uncertainty remains a live wire: should enforcement proceed, volatility could resurface late in the quarter. For now, however, investors appear cautiously indifferent.

La Place de Bordeaux’s autumn window

With the Bordeaux 2024 En Primeur campaign having underwhelmed, attention now turns to La Place de Bordeaux’s autumn campaign. This presents a rare chance for standout producers from around the world to seize attention, particularly those releasing back vintages or special bottlings. A well-priced, tightly-curated campaign could reignite interest and provide pockets of momentum in an otherwise quiet market.

Rest of the World builds buzz

As traditional strongholds like Bordeaux and Burgundy continue to correct or stagnate, Rest of the World wines are beginning to command more attention. California, Tuscany, and Rhône producers featured prominently among H1’s top performers, and collectors may increasingly look to these regions for value, scarcity, and differentiation in the second half of the year.

A stable market… but will it rise?

Fine wine’s reputation for stability held firm in H1, avoiding the sharp swings seen in equities. The question now is whether this stability will give way to price appreciation. While some wines are poised to rise, we expect the broader market to remain sluggish through the summer. Liquidity typically thins in July and August, and the broader mood is unlikely to shift meaningfully until September.

What to watch

  • Tariff developments post-August 1st
  • Autumn releases on La Place, especially non-Bordeaux
  • Top Champagne brands starting to rise in value
  • Collector appetite for emerging regional stars
  • Signs of rotation from defensive to opportunistic buying behaviour

WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Speak to one of our wine investment experts and start building your portfolio. Schedule your free consultation today.

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How fine wine investment attitudes differ in the UK and US

  • UK investors are moving faster than their US counterparts in handing over to a younger, tech-savvy generation, with a sharper decline in ‘very experienced’ participants.
  • US portfolios still allocate more to fine wine on average, reflecting a greater appetite for alternative assets despite similar downward trends in allocation.
  • Both markets are embracing digital tools and AI-driven insights, but the UK appears slightly ahead in integrating fine wine into a broader fintech-enabled investment strategy.

The fine wine investment market in 2025 is experiencing a paradigm shift on both sides of the Atlantic. While the United Kingdom and the United States share many overarching trends like the rise of a younger, tech-savvy investor base and the repositioning of fine wine as a strategic asset, the nuances in their trajectories highlight key cultural, financial, and strategic differences.

A shared generational shift at different paces

Both the UK and US reports depict a clear generational handover in fine wine investment. Baby boomers, once the stalwarts of the market, are selling off holdings accumulated over decades. In their place, a new cohort of Millennial and Gen Z investors is emerging – individuals who see wine less as a consumable luxury and more as a data-driven, alternative investment.

*UK

However, the pace of this transition is more pronounced in the UK. Only 32% of UK investors in 2025 are now classified as ‘very experienced’, a sharp drop from 52% in 2024. In contrast, the US market still holds a stronger base of experienced investors, with 44% falling into that category – a modest decline from 48% in 2024.

*US

This suggests that while the UK is undergoing a more aggressive generational overhaul, the US market remains slightly more anchored in legacy investor behaviors. This could reflect cultural factors, such as the USA’s longer-standing tradition of wine collection, or structural elements like the greater maturity of digital investment platforms in the UK.

Diverging portfolio allocations

In both markets, fine wine is increasingly treated as a complementary asset class rather than a core holding. This shift is evident in declining portfolio allocations. In the UK, the average portfolio allocation to fine wine has dropped from 10.8% in 2024 to 7.8% in 2025. US investors have larger allocations overall, which have still declined from 13% to 10.7% on average year-on-year.

While both reductions are linked to recent price corrections and broader diversification strategies, the US still shows a greater willingness to commit higher portions of wealth to fine wine. Notably, 40% of US investors still allocate 11–20% of their portfolio to wine, compared to 18% in the UK.

This discrepancy may be driven by different attitudes toward risk, or a reflection of the US investor’s broader enthusiasm for alternatives – including crypto, art, and collectibles – where fine wine fits comfortably into a high-yield mindset.

Technology and the new investor toolkit

One unifying force across both markets is the use of AI, data analytics, and digital platforms. The new generation of investors is not relying on intuition; they’re using dashboards, price trends, and machine learning models to inform their trades.

*UK

This transformation is blurring the line between emotional and analytical investment, enabling fine wine to shed its image as a passion-led endeavor and gain legitimacy as a financial tool. However, the UK appears slightly more mature in this regard, perhaps due to a tighter integration between fintech and alternative asset platforms.

*US

Market sentiment: recalibration, not retreat

Despite recent price softening, neither the UK nor US market is retreating. Instead, both are recalibrating. Experienced investors are taking profits, newer investors are entering at lower price points, and portfolio managers are redefining what role wine should play – most now agree it’s a diversifier, not a pillar.

Crucially, both markets anticipate that today’s corrections will lay the groundwork for tomorrow’s gains. Historically, fine wine has shown resilience and rebound capacity. The current dip may ultimately broaden participation and enhance long-term sustainability.

Two markets, one destination

The UK and US fine wine investment landscapes are converging in vision, yet diverging in pace and personality. The UK is evolving faster – more volatility-tolerant, more digitally advanced, and more dynamic in reallocating portfolios. The US, by contrast, remains a more anchored, cautiously progressive market, with higher average allocations but slower risk adoption.

Yet both markets are ultimately moving toward the same future: a fine wine investment world that is younger, smarter, more inclusive, and increasingly strategic.

As fine wine sheds its elitist past and embraces a tech-enabled future, investors on both sides of the Atlantic recognise fine wine’s growing potential.

Looking for more? See also: 

WineCap Wealth Report 2025: UK Edition

WineCap Wealth Report 2025: US Edition

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Report

WineCap Wealth Report 2025: UK Edition

Fine wine has cemented its position as the most sought-after collectible among UK high-net-worth individuals, according to the newly released 2025 UK Wealth Report. Drawing on fresh research from leading UK wealth managers and IFAs, the report explores how fine wine has continued to evolve from a niche passion asset into a strategic, tax-efficient component of diversified portfolios.

Key report findings:

  • 96% of wealth managers expect demand for fine wine to grow in 2025 – more than for any other luxury asset
  • 80% say fine wine’s exemption from Capital Gains Tax (CGT) is driving renewed investor interest amid tightening tax rules
  • 26% of portfolios now include fine wine in higher-risk strategies – up from 12% in 2024
  • Fine wine is entering retirement planning for the first time, with allocations rising from 0% to 6%
  • A generational shift is underway, with younger, tech-enabled investors embracing wine as a financial instrument

‘Fine wine is no longer reserved for collectors and connoisseurs – year after year our research shows that it is being viewed as a serious asset with strong fundamentals for growth, and valuable tax advantages,’ said Alexander Westgarth, Founder and CEO of WineCap. 

Market shifts and generational change

The report highlights a market in flux: seasoned collectors are beginning to liquidate long-held assets, creating increased supply and driving a slight dip in average portfolio allocations – from 10.8% in 2024 to 7.8% in 2025. However, this rebalancing is creating fresh opportunities for new entrants, particularly among Millennials and Gen Z investors who prioritise tangibility, transparency, and long-term performance.

Tax efficiency and diversification at the forefront

Fine wine’s unique tax status under UK law – classified as a ‘wasting asset’ and therefore exempt from Capital Gains Tax – makes it increasingly attractive at a time when HMRC has reduced tax-free allowances and raised effective rates. The report shows that 80% of wealth managers believe demand will rise due to this exemption alone.

The report further looks at the factors creating demand for fine wine, the impact of Trump’s policies on investment, and how AI is modernising the market. 

Download your complimentary copy of the 2025 WineCap Wealth Report and discover how fine wine can enhance your investment portfolio.

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WineCap Wealth Report 2025: US Edition

In a year marked by shifting interest rates, political uncertainty, and evolving investor mindsets, one asset is quietly holding its ground – and gaining new momentum: fine wine.

According to WineCap’s newly released 2025 Wealth Report, fine wine has once again claimed the top spot among collectible investments, with 94% of US wealth managers expecting demand to rise this year. 

Key report findings:

  • 94% of US wealth managers expect demand for fine wine to increase in 2025 (up from 84% in 2024)
  • Fine wine now appears in 28% of high-risk portfolios
  • 72% say high interest rates are a supportive factor for fine wine investment
  • 98% of respondents value wine’s independence from the US dollar as a macro hedge
  • 46% cite strong long-term returns as a key reason for rising demand
  • Portfolio allocations to wine now average 10.7%, reflecting more diversified investment strategies

‘Fine wine continues to prove itself as a robust and intelligent asset class,’ said Alexander Westgarth, Founder and CEO of WineCap. ‘While some seasoned collectors are selling to capitalise on earlier gains, we’re seeing younger, more data-driven investors enter the market – redefining how wine is used in wealth portfolios.’ 

Fine wine in the world of investment

According to the report, fine wine ranks higher than all other collectible investments for 2025. Confidence in its market stability, liquidity, and transparency places it above art, watches, whiskey, and luxury handbags.

In a post-pandemic landscape marked by inflation spikes, rate fluctuations, and policy shifts, wealth managers are increasingly recommending tangible assets with low correlation to equities. Fine wine’s appeal as an inflation-resistant, currency-independent, and globally traded asset makes it an attractive choice for investors seeking stability across economic cycles.

A maturing market

Despite a dip in average allocations from 13% to 10.7%, the report points to a healthy market recalibration – one where liquidity is improving, supply is expanding, and younger investors are driving new demand.

‘This is no longer a passion-driven niche – it’s a credible, data-backed, and globally relevant investment class,’ added Westgarth. ‘As the landscape evolves, we see fine wine becoming a cornerstone of modern portfolio diversification.’ 

The report further looks at the factors creating demand for fine wine, the impact of Trump’s policies on investment, and how AI is modernising the market. 

Download your complimentary copy of the 2025 WineCap Wealth Report and discover how fine wine can enhance your investment portfolio.

 

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How to build a diversified fine wine portfolio

Fine wine investment portfolio
  • A diversified wine portfolio spreads the risk across different wines and regions.
  • Each wine region has its own unique characteristics, and its performance is largely influenced by its own market dynamics.
  • Investors can also diversify their portfolio by vintages, including older wines for stability and new releases for growth potential. 

Fine wine is a popular investment for those seeking diversification and long-term growth. However, like any investment, building a successful fine wine portfolio requires strategic planning and a thorough understanding of the market.

This article explores key strategies for creating a balanced, diversified fine wine portfolio, and why it is important to include a variety of regions, brands and vintages.

Why diversification is key

As renowned economist Harry Markowitz put it, ‘diversification is the only free lunch in finance’. 

Diversification is fundamental to risk management in any portfolio, and fine wine investment is no exception. A diversified wine portfolio helps to reduce the impact of volatility, allowing investors to maximise returns by spreading risk.

While some wines may deliver higher returns, others can contribute to portfolio stability, as different regions tend to perform in cycles. This is why building a balanced fine wine portfolio requires selecting wines from a variety of regions, vintages, and holding periods. 

Diversifying by regions

Wine regions around the world offer unique characteristics, each with its own market dynamics. Including wines from multiple regions can help balance and strengthen an investment portfolio. 

Some primary regions to consider include:

Bordeaux: Bordeaux is undoubtedly the leader in the fine wine investment landscape, taking close to 40% of the market by value. The First Growths are its most liquid wines. In general, the classified growths are a staple in investment portfolios due to their established reputation and consistent performance.

Burgundy: Burgundy, driven by scarcity and rarity, is an investors’ paradise that has been trending in the last decade. Prices for its top Pinot Noir and Chardonnay have reached stratospheric highs and the region consistently breaks auction records.

Champagne: A market that attracts both drinkers and collectors, Champagne has enjoyed rising popularity as an investment in the last five years, thanks to strong brand recognition, liquidity and stable performance.

Italy: Italy continues to provide a mix of value, growth potential, and great quality. Its two pillars, Tuscany and Piedmont, are often included in investment portfolios for their balancing act – if Tuscany provides stability, top Barolo and Barbaresco tend to deliver impressive returns. 

California: Top Napa wines are among the most expensive in the market, while also boasting some of the highest critic scores, particularly from the New World. 

Emerging investment regions: As the market broadens, wines from other well-established regions are gaining traction in the investment world. Germany, Australia, and South America are some of the countries bringing a new level of diversity that can sometimes lead to higher returns.

Choosing vintages strategically

A well-diversified investment portfolio focuses on a range of vintages, as well as labels.

While older vintages offer stability and a more predictable market performance, younger vintages have a greater growth potential as they mature.

Older prime vintages: ‘On’ vintages, specific to each region, like Bordeaux’s 2000 or 2005, tend to have stable pricing due to their high quality and reputation. Including these in your portfolio can provide a foundation of reliability.

Younger vintages: Wines from recent years with high-quality (such as Bordeaux 2019) can offer growth potential over the long-term. As these wines age, their value often appreciates, providing long-term returns for investors willing to hold them.

Off-vintages: Investing in lesser-known or ‘off’ vintages can be worthwhile, particularly if the producer has a strong reputation. These wines are often priced lower but can perform well over time. Typically though not always they have a shorter holding period.

At the end, it is always a question of quality and value for money. 

Balancing short-term and long-term holdings

Fine wines vary in their optimal holding periods. Some wines reach peak quality and market value sooner, while others require decades of ageing. Creating a mix of wines with different holding periods allows for both short-term liquidity and long-term growth.

Short-term hold wines: These are typically wines from lesser-known producers, high-demand recent vintages or off vintages bought during periods of market correction.  These wines can be sold within a few years for a quick return.

Long-term hold wines: Wines from top producers, especially those known for longevity, are best held for 10+ years. For example, a Château Lafite Rothschild or Domaine de la Romanée-Conti can offer three figure returns if held over decades.

Active management for maximising portfolio success

Diversification is just one piece of the puzzle. Regular monitoring and occassional adjustments are essential for maximising returns in a fine wine portfolio.

Market conditions and wine values change over time, so staying informed and making adjustments ensures your portfolio remains aligned with your financial goals. Using tools like Wine Track or consulting with a wine investment advisor can provide valuable insights for rebalancing and enhancing your investment strategy.

WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Speak to one of our wine investment experts and start building your portfolio. Schedule your free consultation today.

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What factors affect fine wine prices?

Domaine Romanee de la Conti wine bottles
  • The most important factors that affect fine wine prices are production costs, climate change, market demand, and economic conditions.
  • Market demand is influenced by critic scores, rarity, producer reputation, vintage quality, and geopolitics.
  • Understanding the factors that affect fine wine prices is key to making smart investment decisions.

Fine wine is more than just a luxury product – it is an asset class, a status symbol, and for many, a serious investment. While buyers might be aware of the rising value of sought-after labels, understanding the factors that drive these prices (upwards or downwards) is key to navigating the fine wine market. 

In this article, we explore the primary factors affecting fine wine prices, including production costs, climate change, market demand, and broader economic conditions.

How production costs shape fine wine prices

At the heart of fine wine pricing are the production costs. The making of a high-end wine is a meticulous, labour-intensive process that is inevitably reflected in the price. So are the land costs, which can reach astronomic heights in famous fine wine regions like Burgundy, Napa or Bordeaux. 

For instance, the luxury conglomerate LVMH recently acquired 1.3 hectares of Grand Cru vineyards on the Côte d’Or for 15.5 million euros. The purchase includes half a hectare each in Corton-Charlemagne and Romanée-Saint-Vivant, as well as 0.3 hectares in Corton Bressandes.

Besides land costs, manual labour and vineyard management can further affect release prices. The more human intervention required – whether in the vineyard or the winemaking process – the more costs add up.

Finally, many fine wines are not ready for release for several years after production. Extended ageing means producers incur additional costs, which in turn drives up prices for wines that are stored for longer periods before hitting the market.

The impact of climate change on fine wine pricing

In many traditional wine regions, unpredictable weather patterns, such as frost, heatwaves, and hailstorms, have resulted in lower grape yields. For example, the devastating frost in Burgundy in 2021 significantly reduced production, leading to a scarcity of wines from that vintage. 

When yields are lower, the limited supply pushes prices higher, especially for in-demand producers. This scarcity effect can be seen in top wines like Domaine Leflaive or Domaine de la Romanée-Conti, where a challenging growing season can result in soaring prices.

Additionally, climate change is affecting the style of wines being produced. While some regions like Bordeaux are adapting to these new conditions, climate volatility has added another layer of unpredictability to wine prices. It has also facilitated the emergence of new wine regions, leading to a more competitive landscape.

Market demand and the rise of fine wine investment

Market demand is perhaps the most significant factor affecting fine wine prices. The most sought-after bottles usually rise in value, as quality improves over time and supply diminishes.

Producer reputation, vintage quality and scores from major critics like Robert Parker and Neal Martin play a key role here, informing buying decisions and pricing strategies. A 100-point wine often commands a significant premium to a 99-point wine. When it comes to the Bordeaux First Growths, for instance, the average difference between a 99-point and a 100-point wine is over £350 per case.

Market demand is also shaped by geopolitical factors. The global nature of wine trading platforms means that market sentiment can affect wine prices faster than ever before. Demand from China largely contributed to Bordeaux’s pricing surge in 2011, and today interest is moving towards Burgundy and Champagne.

Economic forces that influence fine wine prices

While the fine wine market generally operates with its own dynamics, macroeconomic factors such as inflation, currency fluctuations, and recessions can all have an impact.  

In times of economic downturn, discretionary spending often decreases, which can lead to short-term drops in wine prices. However, fine wine has historically shown remarkable resilience due to its tangibility, rebounding after economic dips. 

Currency fluctuations also play a role; for instance, a weaker euro might make European wines more attractive to international buyers, spurring demand and increasing prices in markets like the US or Asia.

Changes in trade policies and tariffs can also have an impact. The Trump tariffs on European wines in 2020 temporarily raised the prices of French and Italian wines in the American market. While these tariffs have been reduced, ongoing changes in trade regulations can create volatility in wine pricing, particularly for internationally traded wines.

Understanding price fluctuations within fine wine

Fine wine prices are influenced by a complex interplay of factors, from the inherent quality of the wine itself to broader market forces and economic conditions. Understanding these factors is key to making informed decisions and maximising returns on investment.

Want to learn more about fine wine investment? Download our free guide.

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Beyond Bordeaux releases: why back vintages offer better value

Seña wine bottles wine cellar
  • This autumn sees the annual beyond Bordeaux campaign via La Place. 
  • Most of the wines have been released at the same price level as last year. 
  • This is not enough to stimulate buyers given the current dip in market prices across all regions. 

This month’s La Place de Bordeaux campaign has seen a mix of notable releases beyond the traditional Bordeaux wines, featuring the latest vintages from esteemed producers like Opus One, Masseto, Solaia, Penfolds, and Viñedo Chadwick. However, as market prices dip across multiple regions, many of these releases have seen limited appeal. The enhanced availability of older vintages at more competitive prices makes back vintages a more attractive investment option.

Super Tuscan releases

The Super Tuscan Masseto 2021 kicked off this autumn’s La Place campaign at the same price as last year’s vintage. It marks one of the last vintages overseen by Alex Heinz, who transitioned to CEO of Château Lascombes in Bordeaux in 2022. 

The wine received a perfect 100-point score from Antonio Galloni (Vinous) who said it was ‘the most exquisite, refined young Masseto’ he had ever tasted. Monica Larner (Wine Advocate), while giving it 95 points, described it as a ‘very rich and elaborate expression’.

However, better value can be found in back vintages such as 2017, 2018, and 2019, where critic scores are more aligned across publications.

Masseto wine prices chart

In contrast, Solaia 2021 from Marchesi Antinori came in at a 15.7% premium over the 2020 vintage, with a recommended price of £3,240 per 12×75. 

Despite strong reviews – 97 points from Larner and a perfect 100 from Galloni – this price positions the 2021 Solaia above several recent vintages. 

Buyers seeking better value might prefer the 2018, 2019, or even the 100-point Solaia 2015, which comes with the added advantage of age.

Solaia wine prices chart

Chile’s iconic wines

Two of Chile’s most iconic wines were also released earlier this month, Seña 2022 and Viñedo Chadwick 2022.

Although Seña 2022 was offered at the same price as last year, it is still the most expensive vintage currently in the market due to a drop in value of the previous vintages. The 2019 and 2018 vintages, for instance, both have higher scores from Wine Advocate and cost less.

Mondavi & Chadwick, Seña wine prices chart

Similarly, Viñedo Chadwick 2022 was released at last year’s price but remains the second most expensive vintage, following the 2015 Joaquín Hidalgo (Vinous) awarded it 98 points, praising its ‘finessed Bordeaux-oriented style with the plush tannins of Maipo’.

From an investment perspective, the 2021 offers a more affordable, higher-scored alternative, while the 2018 and 2019 vintages are also solid options.

Errazuriz Vinedo Chadwick wine prices chart

Other notable releases

Château de Beaucastel Hommage à Jacques Perrin 2022 is another wine released at the same price as last year, which has since fallen in value. This makes it the second most expensive after the 2016. 

It received a range of 96-98 points from Nicolas Greinacher (Vinous), who said it was ‘on track to rank alongside the spectacular 2020’. Still, the 2018, 2017 and 2015 present better value alternatives. 

Beaucastel, Chateauneuf du Pape Hommage J Perrin wine prices chart

With a small increase of 1.3% on last year, Penfolds Grange 2020 was released at £4,740 per 12×75. 

Erin Larkin (Wine Advocate) described it as ‘lighter than the preceding 2019’ and gave it 95 points. It received the same score from Angus Hughson (Vinous) who suggested that it would benefit from a ‘couple more years in the cellar [that] will bring all the pieces together before a two-decade drinking window’.

When it comes to back vintages, the 2012, 2014 and 2015 all look more attractive. The 100-point 2013 vintage is also cheaper and has entered its early drinking window.

Penfolds Grange wine prices chart

Back vintages remain an untapped opportunity

As the latest La Place de Bordeaux campaign reveals, many new releases are being offered at prices that do not necessarily align with current market conditions.

In contrast, back vintages – often with comparable or superior critic scores – can provide better value and greater investment potential. With the market dip creating opportunities for buyers, it is a good time to focus on older, well-regarded vintages that offer both affordability and maturity.

Get in touch to discuss your allocations or to start building your fine wine collection. Schedule a consultation.

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What to expect from the 2024 La Place de Bordeaux campaign?

2024 La Place de Bordeaux campaign
  • La Place de Bordeaux’s autumn campaign continues to expand, with new entries from Germany, France and the rest of the world.
  • The network offers producers logistics expertise and knowledge of the world’s fine wine markets.
  • Some of the top brands that enjoy sustained demand every year include Californian cult wines Opus One and Promontory, and the Super Tuscans Solaia and Masseto.

Following a mixed 2023 Bordeaux En Primeur campaign, which saw many châteaux lowering their prices compared to last year, this autumn will see the annual hors Bordeaux La Place campaign.

As the market for Bordeaux narrows, the system, originally designed purely to sell the wines from the region, continues to expand. However, it’s essential to recognise the challenges that lie ahead.

Current market sentiment

The fine wine market is currently navigating through a period of uncertainty. Economic downturns in key markets like China, where Bordeaux sales have plummeted by two-thirds since their peak in 2017, and the looming threat of a recession in the US, have created a cautious environment. This has significantly impacted confidence in the market, with many stakeholders bracing for a potentially attritional campaign this autumn.

Continued expansion of La Place de Bordeaux

For new producers, the benefits of joining the La Place distribution network are manifold. As Areni put it in a recent article, ‘La Place offers fine wine producers something remarkable: a depth and breadth of fine wine expertise, coupled with a fine-grained knowledge of the world’s fine wine markets and plenty of logistics expertise. La Place also offers prestige, making it highly attractive to many of the world’s fine wine producers’.

According to Mathieu Chadronnier, president of Bordeaux négociant CVBG, ‘We will see more wines from beyond Bordeaux come to La Place. That trend is not going anywhere because the fundamental rationale that fine wine is one single category that embraces regions and countries of origin remains.’

This shift is particularly significant in light of the current market conditions. As Bordeaux faces challenges, the inclusion of international wines has become more crucial, providing a broader range of offerings and catering to an increasingly global market.

New entries on La Place

Ernst Loosen, the renowned Mosel-based producer, is entering La Place for the first time this year with a limited-production wine, Weingut Dr. Loosen, Zach. Bergweiler-Prüm Erben.

Meanwhile, Rheingau Riesling producer Schloss Johannisberg is advancing its strategy to expand the global reach of its premium Rieslings. This autumn, they will introduce Schloss Johannisberg Riesling Goldlack and Schloss Johannisberg Riesling Orangelack Kabinett to a broader international audience using the network’s global reach.

Additionally, Maison Georges Vigouroux will release the first Malbec from Cahors – Château de Haute-Serre Grand Malbec 2022 – through La Place de Bordeaux. This marks the first global ‘icon’ wine from the appellation since phylloxera nearly eradicated the grape variety in France almost 200 years ago.

Top brands to watch

The coming weeks will see the release of the latest vintage from some of the hottest brands, including the Super Tuscans Solaia, Masseto and Bibi Graetz, Californian cult wine Opus One joined by estates such as Inglenook, Joseph Phelps and Promontory, the Chilean Almaviva, Viñedo Chadwick and Viña Seña.

From Australia, Wynns will release the 2021 John Riddoch, Cloudburst its Cabernet Sauvignon, Chardonnay and Malbec 2021, Jim Barry ‘The Armagh’ Shiraz 2021, and Penfolds Bin 169 2022.

France will also see the release of the 2022 vintage of Le Petit Cheval Blanc, Y de Yquem and Château de Beaucastel Hommage à Jacques Perrin, Philipponnat Clos des Goisses 2015, and Latour 2009.

The table below shows the performance and price points of some of the top brands released via La Place de Bordeaux every autumn.

La Place brands

Long-term prospects

Although prices for all these brands have fallen in the last year – creating the so called ‘buyer’s market’ – they remain great long term investments. Moreover, the new releases enjoy sustained demand year after year.

The current downturn in the market presents an opportunity for change. This period of uncertainty has led to more informed decision-making, a focus on quality, and a more selective approach to the new releases.

The 2024 La Place de Bordeaux campaign is set to be a dynamic and expansive event, showcasing a diverse array of global wines alongside the region’s traditional offerings. Despite the current challenges, the long-term prospects for La Place are promising, with the potential for significant growth and continued evolution in the years to come.

WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Speak to one of our wine investment experts and start building your portfolio. Schedule your free consultation today.

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The state of the fine wine market so far in 2024

Chateau L'Eglise-Clinet vineyard
  • Fine wine remains a buyer’s market in 2024.
  • Burgundy prices have fallen the most, while Italy has been the most resilient region. 
  • Some wines have outperformed the market, such as L’Église-Clinet 2012.

The fine wine market remains a buyer’s market in 2024. All fine wine regions have experienced declines, with prices for Burgundy, Bordeaux, and Champagne falling the most. 

Still, some wine brands have outperformed the market by far – such as Henri Boillot Chevalier-Montrachet Grand Cru, which is up 23% since the beginning of the year.

Regional wine performance so far in 2024

The fine wine market’s downturn has continued into 2024. The broadest measure of the market, the Liv-ex 1000 index, is down 4.9% year-to-date. Within it, Burgundy (-7.0%) and the Rest of the World (-4.8%) sub-indices have fallen the most. 

The Champagne 50 index is also down 4.5%. However, the index rose 0.9% last month, buoyed by Dom Pérignon 2006 and 2012, Louis Roederer Cristal Rosé 2008 and various vintages of Pol Roger’s Cuvée Sir Winston Churchill. 

Liv-ex regional wine indices 2024

As we have previously explored, Italy has been the most resilient fine wine region, down 2.3% year-to-date. Its performance has been stabilised by brands from Piedmont, specifically Barolo and Barbaresco. 

The Rhône 100 index, which has been the perennial underperformer over the long term, has also experienced lesser declines this year, falling just 3.2%. Outside the Liv-ex 1000 index, the California 50 is down 3.8%. 

The biggest risers this year

Despite broader market uncertainties, some brands have risen by close to 30% in value since the beginning of the year (as of August 1st).

With an average case price of £720, Delas Hermitage Domaine des Tourettes Blanc is up 26% this year. It has been followed by a high-profile Burgundy – Henri Boillot Chevalier-Montrachet Grand Cru, which has risen 23%. 

The most expensive wine on the rankings, Domaine du Comte Liger-Belair La Romanée Grand Cru, has enjoyed an 11% rise. 

Best performing wine brands H1 2024

The best performing wines

When it comes to the best performing individual wines, Bordeaux leads the way with L’Église-Clinet 2012, up an impressive 38%. It has been followed by Cheval Blanc 1998, up 27%. 

Another top Bordeaux comes fourth – Gruaud Larose 2018 (19%). Sweet Bordeaux also features in the table with two vintages from Suduiraut, 2019 and 2010, and Climens 2015.  

Meanwhile, Champagne’s best performer is the ‘gorgeous’ (AG 98 points) Krug 2004, up 26%. 

Best performing wines H1 2024

While the fine wine market has continued to face declines across most regions in 2024, presenting great opportunities for lower-than-average prices, some wines have shown remarkable resilience. Even in a buyer’s market, excellence prevails.   

For more on the state of the fine wine market, read our latest quarterly report. 

WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Speak to one of our wine investment experts and start building your portfolio. Schedule your free consultation today.

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Top reasons to invest in fine wine in 2024

  • Stability, sustainability and increased market liquidity are the key drivers of investment interest in fine wine. 
  • UK investors are also attracted by the tax advantages of fine wine, which is classed as a ‘wasting asset’.
  • Meanwhile, passion investing is on the rise in the US, seeing an 8% uptick since last year.  

Our recent survey among UK and US wealth managers revealed the top reasons why investors are choosing fine wine in 2024. 

While there are differences in their motivations based on demographic, sustainability, stability through different economic environments, and increased liquidity came at the forefront in both markets.  

Fine wine’s stability during market volatility

In uncertain times, investors often seek tangible assets that offer stability. As WineCap’s CEO, Alexander Westgarth puts it, ‘In times of hardship, people want something solid. Literally. Tangible assets like property, gold or fine wine tend to feel more precious during market downfalls’. 

With US market sentiment being one of fear, according to the Fear & Greed index, 74% of US wealth managers chose stability as their top reason to include fine wine in client portfolios, marking a 6% increase from last year.

US investor motivations for fine wine

In the UK, stability came as the second most important factor driving demand for fine wine. It was cited by 56% of our survey respondents, up 16% since 2023. High inflation, slow economic growth and various macroeconomic headwinds have solidified fine wine’s position as a ‘safe haven’ asset, preferred by UK investors. 

Sustainable investing on the rise

Sustainability was the number one reason to invest in fine wine for UK wealth managers, and the second most important factor in the US. 

As we recently explored (‘The growing importance of sustainability in fine wine investment’), there has been a broader global trend where environmental, social, and governance (ESG) factors are increasingly shaping investment strategies across various asset classes, including fine wine.

Research from Morgan Stanley shows that more than half of individual UK investors plan to increase their allocations to sustainable investments in 2024, making fine wine a great investment option. 

According to our survey, 68% of UK investors invest in fine wine because of its low-carbon benefits, with many fine wine producers leading the charge in sustainable viticulture. 

Improved liquidity

Investors in both the UK and US recognise that the fine wine market is becoming more liquid. Advances in technology have opened up new avenues for investors, simplifying buying and selling processes, improving price transparency, and shifting perceptions of fine wine as an “illiquid liquid.”

As a result, UK investor confidence in the market’s liquidity has increased by 32% in 2024. As for the US, there has been a 14% increase from 2023. 

UK tax benefits

UK investors benefit from fine wine’s status as a ‘wasting asset’ making it a more tax-efficient investment. As of April 2024, UK investors pay up to 28% tax on profits over £3,000. Pre-2022, investors paid tax on anything above £12,300, but the past few years have seen the threshold slashed in a bid to plug the ‘fiscal black hole’. 

As a ‘wasting asset’, the HMRC does not consider fine wine an investment where the profit should be taxed. Investors recognise this benefit, with 90% of our survey respondents noting that the CGT changes will increase the attractiveness of fine wine.

Tax efficiency was the fourth most important reason for UK investors, cited by 38% of the respondents.

UK CGT changes and fine wine investment

The overlap between collecting and investing in the US

Fine wine, long seen simply as a passion asset, has managed to rebrand itself as a sound alternative investment choice. UK investors today focus less on ‘passion’, a motivation that has seen a 16% dip since last year. 

Still, in the US, many investors start out as collectors. ‘Passion investing’ has been on the rise across the pond, with 24% of the survey respondents being motivated by earning a profit and enjoying the experience that comes with owning a fine wine collection. 

For the full breakdown of the reasons why investors choose fine wine in 2024, read our UK and US Wealth reports.

WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Speak to one of our wine investment experts and start building your portfolio. Schedule your free consultation today.