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How UK and US investors react to tariffs

  • Wealth managers in both the UK and US anticipated increased demand for equities, real assets, and alternatives amid shifting trade policy landscapes.
  • US respondents showed stronger confidence in alternative assets, while UK managers leaned more toward traditional equities and property.
  • Fine wine was viewed in both markets as a resilient, inflation-resistant asset with long-term appeal, especially in portfolios seeking diversification.

With President Donald Trump back in the White House, global markets have once again entered a period of trade policy uncertainty. In late May 2025, the administration proposed sweeping 50% tariffs on European Union imports, initially planned for June 1 but now delayed until July 9 following negotiations with European Commission President Ursula von der Leyen. The move echoes earlier policy cycles that disrupted cross-border commerce, and while implementation remains uncertain, it has revived conversations about portfolio resilience and asset class performance under changing geopolitical conditions.

In our Wealth Management survey earlier this year, investors across both sides of the Atlantic were asked to consider how a renewed focus on domestic trade policy and market protectionism might shift capital allocation preferences. Their responses revealed an appetite for assets considered resilient, global, and responsive to consumer growth.

A recalibration of confidence across core and alternative assets

Across both markets, wealth managers projected increased demand for a wide range of asset classes, albeit with slightly different emphases. In the United Kingdom, demand was strongest for traditional equity exposures, particularly US stocks (94%) and emerging markets (90%), reflecting a continued belief in global growth opportunities despite the shifting trade backdrop. Property and non-US developed stocks also garnered attention, as did cash and bonds – indicating a balanced appetite for both growth and defensive positions.

*UK

In the US, the tone was more expansive and optimistic. US stocks topped the list at 98%, with similarly high sentiment for non-US developed markets (92%), cash (90%), and emerging market equities (86%). However, American wealth managers also showed a greater inclination toward alternatives – digital currency (88%), real estate (80%), startups (76%), and luxury collectibles (74%) all ranked notably high. This suggests that, even in the face of policy shifts, US investors were inclined to look for opportunity amid change, particularly in sectors with strong long-term narratives or tangible value.

*US

A nuanced position for fine wine and luxury assets

Fine wine and other luxury collectibles were not among the top-tier asset classes in the survey but nevertheless held their own as part of a well-rounded diversification strategy. 

While only 58% of UK respondents expected an increase in demand for luxury collectibles compared to 74% in the US, both figures reflect a belief in the long-term value of tangible, non-correlated assets – especially during periods of policy uncertainty.

Historically, fine wine has performed well in such climates. Its low correlation with traditional financial markets, combined with intrinsic scarcity and global appeal, positions it as an attractive option for wealth preservation. 

US respondents in particular noted that if Trump’s policies were to echo those from his previous term – most notably tax cuts that increased disposable income among high-net-worth individuals – then demand for luxury goods, including fine wine, could grow in tandem with consumer confidence.

Inflation resistance and tangibility remain key themes

Another through-line in both markets is the recognition that tangible, inflation-resistant assets may offer stability when macroeconomic or policy environments shift. While digital assets and equities continue to dominate discussions, the inclusion of fine wine and real estate in both countries’ top ten expected demand growth areas suggests a common view: that real, finite goods still hold a trusted place in long-term strategies.

This sentiment aligns with broader investment trends of the past five years, during which fine wine has steadily gained credibility as an alternative asset. From a performance standpoint, it has demonstrated resilience through downturns and delivered attractive risk-adjusted returns over the long term. And as more platforms offer increased liquidity and data transparency, fine wine is becoming more accessible to wealth managers seeking both diversification and durability.

Looking ahead

While our survey preceded the most recent tariff developments, the views it captured reflect a broader mindset already taking shape among global investors. As the July 9 tariff deadline approaches, and with the potential for further policy changes, these pre-existing preferences offer a lens into how wealth managers may continue to allocate in an evolving geopolitical environment.

For fine wine in particular, its dual role as both a passion asset and a portfolio stabiliser could prove increasingly valuable. Whether driven by renewed domestic consumption or a search for global, inflation-resistant stores of value, fine wine appears poised to remain a quiet but meaningful part of the wealth management conversation on both sides of the Atlantic.

Looking for more? See also: 

WineCap Wealth Report 2025: UK Edition

WineCap Wealth Report 2025: US Edition

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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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What makes fine wine a great portfolio diversifier?

  • One of the key characteristics that make fine wine an attractive diversifier is its low correlation to traditional financial markets.
  • Its scarcity and tangibility further drive up its value. 
  • According to the WineCap Wealth Report 2025, 96% of UK wealth managers expect demand for fine wine to increase, a testament to its growing recognition as a valuable asset class. 

Moreover, fine wine’s value is tied to its provenance, condition, and aging potential, making it a tangible investment with intrinsic worth. Unlike cryptocurrencies or speculative stocks, which can experience extreme fluctuations based on sentiment or market cycles, fine wine benefits from an established secondary market where demand remains steady among collectors, investors, and luxury buyers.

Inflation hedge and wealth preservation

Fine wine serves as a natural hedge against inflation, protecting purchasing power when traditional assets are eroded by rising costs. As inflation increases, the prices of hard assets like fine art, real estate, and fine wine tend to appreciate, maintaining their value in real terms.

Wealth managers increasingly recommend allocating a small percentage of a portfolio to alternative assets like fine wine to safeguard against economic turbulence.

Tax efficiency for UK investors

For UK-based investors, fine wine presents a significant tax advantage over traditional investments. Unlike stocks, real estate, or business assets that are subject to Capital Gains Tax (CGT), fine wine is classified as a “wasting asset”, meaning it has an anticipated lifespan of less than 50 years.

This classification makes fine wine exempt from CGT, allowing investors to realise profits without the same tax burdens as other asset classes.

For example, a traditional investment yielding a £5,000 profit could be subject to CGT at rates of up to 24%, reducing net returns. In contrast, a fine wine investment with the same £5,000 profit would be tax-free, maximising gains for high-net-worth investors.

This tax efficiency makes fine wine particularly attractive in wealth management strategies, especially as the UK government has lowered CGT allowances and increased tax rates in recent years.

Growing institutional and HNW investor demand

The perception of fine wine as a viable financial asset is rapidly evolving. Traditionally the domain of private collectors and enthusiasts, fine wine is now being incorporated into portfolios managed by wealth advisors, family offices, and institutional investors.

According to the WineCap Wealth Report 2025, 96% of UK wealth managers expect demand for fine wine to increase, a testament to its growing recognition as a valuable asset class. 

Additionally, AI-powered investment tools are making fine wine more accessible to a broader range of investors. Fine wine companies and professionally managed portfolios allow investors to gain exposure without needing deep industry expertise.

This institutional adoption further legitimises fine wine as a serious financial instrument, enhancing its liquidity and long-term viability.

Why fine wine deserves a place in your portfolio

Incorporating fine wine into an investment portfolio provides stability, tax efficiency, inflation protection, and strong diversification benefits. Its low correlation with traditional assets makes it particularly valuable during periods of market uncertainty, while its scarcity-driven appreciation ensures long-term value retention.

For investors seeking to protect and grow wealth, fine wine remains one of the most compelling alternative investments available today.

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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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2025 investment trends: Trump’s impact on global markets

We have conducted our wealth management survey again in 2025. Here is what UK wealth managers expect to happen with investment demand under Trump’s policies.

  • 94% of UK wealth managers favour US equities under Trump’s pro-business policies, and 90% predict growth in emerging markets.
  • 82% see UK property as a strong hedge against inflation, signalling a shift toward stability-focused investment strategies.
  • 58% of respondents highlight fine wine, art, and classic cars as attractive investments, reinforcing the trend toward tangible, wealth-preserving assets amid economic uncertainty.

With the return of Donald Trump to the White House in 2025, the global investment landscape is experiencing heightened volatility. Events could unfold in any direction given President Trump’s inherent unpredictability – making it more crucial than ever for investors to prepare for the unexpected.

His administration’s tax and trade policies – historically pro-business, protectionist, and favouring domestic production – are already creating ripple effects far beyond US borders. For UK investors, this means a reassessment of how political developments shape financial decisions.

While Trump’s policies could drive stock market rallies, lower corporate taxes, and encourage capital repatriation, they also pose potential risks – such as renewed tariff wars, increased market fragmentation, and a more aggressive stance on trade negotiations. 

The last time Trump held office, his administration imposed tariffs on European wines, disrupting trade and affecting fine wine markets in both the US and UK. In 2025, the geopolitical and economic landscape is vastly different, and while tariffs remain a possibility, the bigger picture suggests that alternative assets – including fine wine – may play an increasingly important role in UK investment strategies.

Investment trends forecast

The expected increase in demand for assets under Trump’s tax and trade policies underscores a broader flight toward stability, alternative assets, and tangible wealth preservation. The following results are based on a 2025 survey among UK wealth managers and independent financial advisors. 

Strongest performing asset classes

US stocks
US equities are projected to see the biggest increase in demand, favoured by 94% of investors. This is a continuation of the 2024 trend, fuelled by expectations of corporate tax cuts, deregulation, and a more business-friendly environment. Historically, Trump’s economic policies have supported stock market growth, and investors appear confident in a similar outcome this time around.

Emerging market stocks
Emerging markets follow closely, with 90% of respondents anticipating increased demand. During Trump’s first term, emerging markets posted positive results, achieving 13.6% annualised growth. However, with Trump’s history of trade wars and potential geopolitical tensions, investors are likely to tread cautiously, focusing on regions that align with US trade interests.

Property
UK property is also enjoying rising demand, according to 82% of wealth managers. At the start of 2025, buyer activity rose 13% year-over-year, with new sales agreed up 12% over 2024. More properties are reaching sale-agreed status, and a 10% increase in listings suggests previously hesitant buyers are re-entering the market. As real estate remains a hedge against inflation, demand for prime and luxury properties is expected to strengthen further.

Cash
The old adage ‘cash is king’ rings true for 80% of investors, reflecting a preference for liquidity amid economic and geopolitical uncertainty. With interest rates still elevated and market volatility expected, investors appear to be holding significant cash reserves, waiting for the right moment to deploy capital.

Alternative and safe-haven assets

Bonds
As fiscal policy and interest rate expectations evolve, 72% of investors see bonds as an attractive asset class. With central banks adapting to economic shifts, fixed-income investments may serve as a stabilising force in portfolios.

Non-US developed market stocks
While US stocks dominate, 72% of investors also foresee demand for non-US developed markets, particularly in regions that may benefit from a changing trade landscape.

Startups & venture capital
With Trump’s pro-business policies likely to fuel entrepreneurial activity, 70% of respondents see an uptick in demand for venture capital and angel investing. Lower corporate tax rates and deregulation could further incentivise innovation and high-growth sectors.

Luxury collectibles
The category that includes fine wine, art, and classic cars is expected to see greater demand, with 58% of respondents highlighting it as an attractive asset class. Given fine wine’s historical resilience during economic downturns and inflationary periods, investors may see it as a store of value amid uncertainty.

Moderate to low confidence assets

Digital currency
Despite Trump’s previous scepticism toward cryptocurrency, his recent endorsement of digital assets may explain why exactly half of respondents see further growth in this sector. While regulatory uncertainty persists, crypto remains a potential high-risk, high-reward investment.

Precious metals
Traditionally a go-to safe haven during market turmoil, precious metals received the lowest investor confidence in our survey. With only 48% forecasting increased demand, this suggests investors may be looking toward more dynamic, yield-generating alternatives rather than passive gold holdings.

Stay tuned for the 2025 edition of the WineCap Wealth Report – published next week.

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 is the price of fine wine determined?

Bordeaux Chateau and vineyard
  • Fine wine prices are influenced by a range of factors – from age to critical acclaim and storage conditions. 
  • Certain wine regions carry inherent prestige that elevates their pricing.
  • Bordeaux First Growths, Burgundy Grand Crus, and Napa cult wines typically hold the highest average prices due to global demand and scarcity.

Fine wine prices are shaped by a mix of tangible and intangible factors, each playing a crucial role in determining a wine’s market value. For collectors or investors treating wine as an alternative asset, understanding how these prices are established is essential. The fine wine market behaves differently from stocks or traditional commodities, yet follows clear principles around scarcity, quality, provenance, and demand.

In this guide, we break down the key influences behind fine wine prices, from production realities to global market trends and the behaviour of auction houses and collectors.

The price of fine wine is influenced by a combination of tangible and intangible factors. For anyone interested in wine investment, understanding these factors is essential to making informed decisions. This guide explores the key elements that determine the price of fine wine, from production to market dynamics.

Producer and brand reputation

One of the most powerful drivers of fine wine prices is producer reputation. In renowned regions such as Bordeaux, Burgundy, Tuscany, and Napa Valley, a small number of elite estates have built global prestige over centuries.

Producers such as Domaine de la Romanée-Conti, Château Latour, Masseto, and Screaming Eagle consistently command premium prices because:

  • their wines have a long track record of excellence

  • collectors trust their craftsmanship

  • demand outstrips supply year after year

Even wines from emerging or lesser-known estates within these regions benefit from the halo effect of high-prestige appellations.

Reputation is a form of currency in the fine wine markets – one that contributes significantly to long-term appreciation and price stability.

Vintage quality

The quality of a vintage year is a foundational element in determining fine wine prices. Weather conditions during the growing season impact grape ripeness, concentration, acidity, and overall structure.

Exceptional vintages often receive strong critical acclaim, accelerating early demand and pushing up prices in both primary and secondary markets. Examples include:

  • Bordeaux 1982, 2000, 2009, 2010

  • Burgundy 2005, 2010, 2015

  • Champagne 2008, 2012

  • Napa Valley 2013, 2016

These highly rated vintages often see long-term appreciation as collector interest endures.

On the other hand, weaker vintages may grow in value more slowly but can still appreciate over time if produced by top estates with strong brand equity.

Scarcity and production volume

Scarcity is one of the strongest long-term drivers of fine wine prices. Wines produced in limited quantities or from small vineyard sites can become highly collectible, especially when combined with rising global demand.

Key scarcity factors include:

  • small vineyard size (e.g., Burgundy Grand Cru parcels)

  • tiny production quantities (e.g., cult wines like Screaming Eagle)

  • ageing windows that encourage consumption, shrinking supply globally

  • strict allocations, limiting the volume released to each market

As bottles are opened worldwide, the remaining supply becomes increasingly rare. This dynamic is central to why fine wine is considered a reliable long-term luxury asset for investors looking to diversify their portfolios.

Critical scores and reviews

The influence of major critics – such as Robert Parker, Jancis Robinson, Neal Martin, and Antonio Galloni – extends across the wine market. High scores can increase a wine’s value almost overnight.

A wine that receives 100 points from a leading critic often experiences:

  • an immediate spike in demand

  • rapid price appreciation

  • greater visibility at wine auctions

  • a strong long-term reputation

Wines with consistently strong critical track records tend to demonstrate more resilient pricing across market cycles.

Conversely, wines with poor or average reviews may struggle to outperform, even if produced by respected estates.

Provenance and storage conditions

Provenance – the verified history of a wine’s ownership and storage conditions – is vital in determining its market value. Buyers pay a premium for wines with impeccable provenance, often stored in:

  • bonded warehouses

  • producer cellars

  • trusted merchant facilities

Perfect provenance assures collectors that the wine has been stored correctly, preserving quality and value. Auction houses frequently highlight provenance as a core selling point, and wines sourced directly from estates often achieve superior prices.

Market trends and global demand

Fine wine prices do not exist in isolation. Global market trends, economic conditions, and consumer behaviour all shape demand.

Factors influencing the broader wine market include:

  • widening wealth in emerging markets

  • shifting preferences toward Burgundy, Champagne, and Tuscany

  • currency fluctuations

  • macroeconomic stability

  • rising interest in biodynamic and organic wines

  • growth of digital trading and globalised auctions

For example, surging demand from Asia over the last decade has contributed to extraordinary appreciation in Burgundy prices. Similarly, Champagne’s increasing popularity as both a collectible and a safe-haven luxury asset has pushed demand for prestige cuvées like Dom Pérignon, Cristal, and Krug.

Tracking global demand helps investors anticipate future price movements and identify opportunities across regions.

Age and maturity

A wine’s age is closely tied to its market value. As fine wines mature, they often enter their optimal drinking window, increasing desirability.

Collectors will pay more for wines that are:

  • perfectly stored

  • approaching or at peak maturity

  • ready to drink immediately

For example, a young First Growth Bordeaux might sell for £400 on release, but reach £800–£1,000 once its drinking window opens. Much older wines can appreciate even more dramatically due to extreme scarcity.

This age-driven evolution is one reason many investors treat wine as a multi-year, low-volatility strategy rather than a short-term investment.

Regional prestige and classification systems

Certain wine regions carry inherent prestige that elevates their pricing. Fine wines from the regions below regularly outperform less renowned regions in terms of long-term appreciation.

  • Bordeaux

  • Burgundy

  • Champagne

  • Tuscany & Piedmont

  • Napa Valley

Formal classification systems – like the Bordeaux 1855 Classification or Burgundy’s Grand Cru hierarchy – further reinforce value by signalling quality and exclusivity.

Wines from higher classifications consistently command premium pricing and often show superior secondary-market performance.

FAQ: Fine Wine Prices

Why do fine wine prices differ so much between producers?

Producer reputation, track record, and regional prestige significantly influence pricing. Top estates with limited production naturally command higher values.

Do fine wine prices always increase over time?

Not always. While many investment-grade wines appreciate, price performance varies by vintage, producer, storage, and global market trends.

How do wine auctions affect fine wine prices?

Auction houses help establish benchmark pricing. Rare bottles with great provenance often achieve record prices, influencing global perceptions of value.

Is fine wine a safe alternative investment?

Fine wine is considered a low-volatility luxury asset with strong long-term performance, making it a popular portfolio diversifier.

What role does provenance play in wine prices?

Perfect provenance can dramatically increase a wine’s value.

Which regions tend to have the highest fine wine prices?

Bordeaux First Growths, Burgundy Grand Crus, and Napa cult wines typically hold the highest average prices due to global demand and scarcity.

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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Fine wine vs crypto? History, volatility and market returns

Bitcoin cyrpto currency versus fine wine as an asset
  • Fine wine offers steady, long-term growth with controlled price fluctuations, while Bitcoin’s extreme volatility presents both high-risk and high-reward opportunities.
  • Fine wine’s centuries-old market is supported by scarcity, provenance, and established ecosystems, contrasting Bitcoin’s shorter, speculation-driven history.
  • Fine wine appeals to risk-averse investors seeking diversification, while Bitcoin caters to those pursuing rapid investments.

Bitcoin has recently captured investment interest as it surged past the $100,000 (£80,000) benchmark for the first time in December last year, up from $45,000 (£36,000) at the beginning of 2024. With its meteoric rise fuelled by regulatory approvals for cryptocurrency exchange-traded funds and mostly the results of the US presidential election, Bitcoin demonstrated its ability to deliver unparalleled gains. Yet, crypto remains a high-risk asset defined by dramatic volatility. From its genesis in 2009, Bitcoin has seen multiple boom-and-bust cycles, with price swings of over 50% in both directions within a single year not uncommon. 

By contrast, fine wine represents a markedly different asset class, appealing to those who prioritise stability and long-term appreciation. The fine wine market has a storied history spanning centuries, with values driven by scarcity, provenance, and global demand rather than speculative hype. While prices in the fine wine market can fluctuate, they tend to avoid the extreme volatility seen in cryptocurrencies. Instead, they enjoy steady growth that outpaces inflation and provides a reliable hedge against economic uncertainty.

Volatility

Bitcoin’s price chart tells a story of rapid ascents and precipitous falls. For example, its 2017 bull run saw prices climb from £800 ($1,000) to nearly £16,000 ($20,000) only to crash to £2,400 ($3,000) the following year. Similar patterns occurred in 2021 and again in 2024, leaving investors questioning when the next downturn might strike.

Fine wine, on the other hand, avoids such dramatic shifts. Prices typically rise or fall within a controlled range, supported by consistent demand from collectors and investors worldwide.

Historical context

Cryptocurrencies are a product of the digital age, with Bitcoin gaining widespread attention only over the past decade. Its rise has been driven by speculative interest, technological innovation, and the allure of decentralisation. However, its short history leaves it vulnerable to regulatory uncertainties, technological disruptions, and shifting investor sentiment.

Fine wine, conversely, boasts a legacy that stretches back centuries. Iconic regions like Bordeaux, Burgundy, and Tuscany have long been synonymous with quality and value. Investments in fine wine are supported by an established ecosystem of producers, merchants, and auction houses. This historical grounding provides a level of security that new asset classes like cryptocurrency struggle to match.

Market performance

One of the defining features of fine wine as an investment is the importance of regional performance. For instance, Burgundy has risen 550% on average over the last twenty years, with some wines achieving returns of over 1,500%. 

The world of fine wine has its own higher risk and higher return investments but it also offers a range of reliable long-term performers. This is why building a fine wine portfolio requires expertise and careful curation. A well-diversified portfolio includes big brands but also undervalued wines and vintages from a variety of regions which can see their value rise based on demand, critic scores, age or other intrinsic factors. 

Liquidity: fast vs steady

Liquidity is another key difference between fine wine and crypto. Bitcoin can be bought and sold 24/7 on global exchanges, making it one of the most liquid investments available. However, this liquidity can exacerbate price swings, with significant moves often triggered by news events or changes in market sentiment.

Fine wine, while less liquid, offers a more controlled market environment. Secondary sales typically occur through investment companies and trading platforms, with prices reflecting a stable and growing investor base. This slower pace can be an advantage for investors seeking to avoid speculative bubbles.

Diversification and portfolio strategy

In today’s investment landscape, fine wine and cryptocurrency appeal to very different investor profiles. Bitcoin caters to those seeking high-risk, high-reward opportunities, while fine wine offers steady, long-term growth and diversification. Incorporating both into a portfolio can provide balance, but the emphasis should align with an investor’s risk tolerance and financial goals.

Fine wine also underscores the importance of expertise. A portfolio focused on iconic regions and proven vintages can deliver strong returns, with minimal exposure to the broader market’s ups and downs. As seen in the market of 2024, the best-performing wines relied on deep knowledge of regional trends and intrinsic dynamics.

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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Mouton Rothschild: 2022 label and market performance

Mouton Rothschild 2022 wine bottle label
  • The 2022 Mouton Rothschild label has been revealed. 
  • Mouton Rothschild is the best performing First Growth over the last decade. 
  • The wine has also outperformed the Liv-ex 100 and Bordeaux 500 indices.

Unveiling the 2022 label

Bordeaux First Growth Château Mouton Rothschild revealed its 2022 label design on December 1st.  Created by French artist Gérard Garouste, the original artwork commemorates the 100th anniversary of Baron Philippe de Rothschild’s leadership at the family estate. 

The label showcases the château’s iconic front wall and a grapevine, elegantly framed by a portrait of Philippe de Rothschild and a ram, his signature emblem.

The tradition of artist-designed labels began in 1945, when Baron Philippe de Rothschild marked the end of World War II with a special artwork featuring a ‘V’ for victory, designed by Philippe Jullian.

As previously explored, this practice has significantly enhanced Mouton Rothschild’s collectability, and the wine’s value has typically risen in the month following the label reveal. 

Mouton Rothschild 2022 wine bottle label

Mouton Rothschild: ahead of the pack

While the artist designed labels alone are not the key drivers of Mouton Rothschild’s investment performance, the wine does lead the way among its peers. It is the best performing First Growth over the last decade. 

Mouton Rothschild prices have risen 50.3%, compared to 42.3% for Margaux and 36.9% for Haut-Brion. Both Lafite Rothschild and Latour have increased by close to 30% over the same period.

Bordeaux First Growths Wine chart

From the market’s low in June 2014 to its peak in September 2022, Mouton Rothschild recorded a 76% increase. It was the first First Growth to recover from the correction following the China-driven wine boom. 

During the recent market downturn, Mouton Rothschild has exhibited relative resilience. Prices have fallen 13.8% since its peak. Only Haut-Brion has seen a smaller decline of 13.1%. The biggest faller has been Lafite Rothschild, down 22.8% since September 2022. 

Mouton Rothschild and the broader market

Mouton Rothschild is also nicely positioned in the broader wine investment market. It has outperformed the industry benchmark, the Liv-ex 100 index, which is up 40.9% over ten years. It has also fared better than the Liv-ex 50 (17.5%), which tracks the price movements of the First Growths, and the broader Bordeaux 500 index (27.8%).

Mouton Rothschild performance

Mouton Rothschild has demonstrated consistent strength in the fine wine market, supported by its established history and strategic positioning. The estate’s practice of commissioning artist-designed labels has enhanced its collectability, strengthened by its reputation for quality.

The release of the 2022 label marks another milestone in the estate’s history. Mouton Rothschild’s performance, both in terms of relative resilience during market downturns and long-term growth, highlights its role as a reliable component in a well-diversified wine investment portfolio.

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 impact of trade wars and tariffs on fine wine investment

The impact of trade wars and tariffs on fine wine investment
  • As an internationally traded asset, fine wine is affected by economic and political factors including trade wars and tariffs.
  • Demand for certain wines and regions can shift as tariffs directly impact pricing, availability and liquidity.
  • Diversification and strategic investment are key to navigating the fine wine market amid trade wars and tariffs.

Over the past two decades, fine wine has transitioned from a luxury product to a well-established internationally traded investment asset. Like any asset enjoying global demand, fine wine is subject to the economic and political forces that shape international trade. 

Legislative decisions, such as changes in taxation and import duties, can directly impact its pricing and accessibility. Trade wars, tariffs, and protectionist policies further add layers of complexity, affecting demand, market stability, and ultimately, investment returns. This article explores how these trade factors influence the fine wine investment market and what investors need to consider.

How trade wars affect wine demand and pricing

Trade wars often involve the imposition of tariffs or import duties on goods traded between countries, which can create a ripple effect across industries and markets. When tariffs are imposed on wine, they can create price volatility, limit access to certain markets, and reduce liquidity, which can impact the investment performance of the affected wines and regions.

For example, in the ongoing trade tensions between the United States and the European Union, wine has frequently been a target for tariffs. In 2019, the USA imposed a 25% tariff on certain European wines in response to a dispute over aircraft subsidies. This tariff included wines under 14% alcohol, impacting popular wine-producing regions such as France, Spain, and Germany, but excluded Champagne and Italy. As a result, Champagne and Italy took an increased market share in the US; when the tariffs were lifted, Bordeaux and Burgundy enjoyed an immediate uptick.  

Market impact of the 2019 US tariffs on European wine: In 2019, Bordeaux accounted for 48% of the US fine wine market on average, according to Liv-ex. From October 2019 to the end of 2020, Bordeaux’s average share of US buying fell to 33%. Burgundy’s share also declined – from 13% before the tariffs to 8%. Conversely, demand for regions exempt from the tariffs rose significantly during this time. Champagne rose from 10% to 14%, Italy from 18% to 25% and the Rest of the World from 4% to 10%. Regions exempt from the 25% US tariffs also saw the biggest price appreciation in 2020. For the first time on an annual basis, Champagne outperformed all other fine wine regions. This led to its global surge. 

Market impact of the 2020 Chinese tariffs on Australian wine: In 2020, China imposed tariffs on Australian wine amid a series of blows to Australian exports, which had a profound impact on Australia’s budding secondary market. Since the tariff introduction, prices for some of the top wines dipped, creating pockets of opportunity. For instance, the average price of Henschke Hill of Grace fell 4%, while Penfolds Bin 707 went down 9%. Since the tariff suspension earlier this year, Australian wine is coming back into the spotlight. 

When it comes to pricing, tariffs can drive up the end cost of imported wine, particularly impacting markets where fine wine demand is driven by consumers with limited domestic alternatives. When tariffs make imported wines prohibitively expensive, consumers may turn to other regions or domestic products. 

From an investment perspective, the unpredictability of trade policies requires a strategic approach that accounts for potential regulatory changes in key markets.

Strategic wine hubs in tariff-influenced markets

In response to tariffs, some regions have positioned themselves as strategic wine trading hubs by offering tariff-free or reduced-tariff environments for wine trade. Hong Kong, for example, abolished its wine import duty in 2008, aiming to become the “wine trading hub” of East Asia. 

This decision has proven instrumental for the fine wine market in Asia, as investors from mainland China and other countries can access European wines without the additional costs that would apply if purchased domestically. As a result, Hong Kong has emerged as a leading location for wine auctions and a key destination for collectors and investors in Asia.

The role of trade agreements

For regions with established wine industries, trade agreements and economic alliances play a significant role in shaping wine tariffs and market access. The European Union, for instance, has trade agreements with multiple countries, allowing for reduced tariffs on wines imported from places like Australia and Chile. However, Brexit has introduced new complexities, as the United Kingdom – one of the largest fine wine markets – now operates independently from the EU. 

For investors navigating the fine wine market amid trade wars and tariffs, diversification and strategic storage are essential. Diversifying across different wine regions and vintages can help minimize exposure to trade barriers affecting specific countries. 

Additionally, storing wine in bonded warehouses can mitigate the risk of sudden tariff impositions on wine imports, preserving the asset’s value. Monitoring geopolitical developments is also crucial, as policy shifts can happen quickly and have immediate effects on wine prices. 

While trade wars and tariffs present complexities, they also create opportunities in the fine wine investment market. In a politically charged landscape, understanding the influence of trade policies on wine markets is critical. By staying agile and responsive to policy changes, investors can better navigate the complexities of wine investment in a globalised yet fragmented market.

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