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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 technology has democratised fine wine investment in 2024

Wine investment technology
  • Technology has democratised fine wine investment by opening new avenues and making the asset more accessible to novice investors.
  • Since last year, there has been a 32% increase in UK investor confidence in the market’s liquidity – a shift partly driven by technology.
  • 80% of UK investors believe that technology like blockchain will create more security and confidence in the sector.

In the world of fine wine, exclusivity has long defined the industry, which has historically attracted seasoned aficionados and connoisseurs with extensive resources and specialised knowledge.

In recent years, technology has democratised the sector, opening new avenues and making fine wine appeal to a more diverse investor demographic. 

According to our 2024 UK Wealth Report, technological advancements have contributed to fine wine going mainstream and thus expanding the market’s appeal to a broader audience, in particular, less experienced investors. Technology has simplified buying and selling processes, enhanced pricing transparency and improved the market’s overall liquidity.

Technology leads to an increase in investor confidence

Since last year, there has been a 32% increase in UK investor confidence in the market’s liquidity – a shift partly driven by technological advancements. In the US, this number is 14%. 

An increasing number of fine wine investors are leveraging data and technology to inform their buying and selling strategies and track the value of their portfolio.  

Online platforms, like WineTrack, have made it easier to identify investment opportunities, compare prices and critic scores and track a brand’s historic performance all in one place. Meanwhile, fine wine indices like the Liv-ex regional indices can help investors compare the performance of different regions and identify market trends.

UK Wealth Managers 2024 Statistics

Advanced technology’s role in fine wine trading

According to our survey, investors and wealth managers are increasingly receptive to new developments, like the use of blockchain technology, in the fine wine investment landscape.

80% of UK investors believe that technology like blockchain will create more security and confidence in the sector, up from 56% last year. In the US, 76% of investors recognise its benefits, up from 54% in 2023.

52% of the UK survey respondents think that blockchain will make reputable releases, such as En Primeur offers, more accessible for investors without using a third party. Still, 6% of them remain sceptical about how this would work in practice.

Meanwhile, 46% of US wealth managers think that blockchain will bring greater transparency in the supply chain, and further boost investor confidence.

As a growing number of new investors consider fine wine for its unique benefits diversifying traditional portfolios, technological innovations continue to redefine their overall experience and industry standards. 

From blockchain contributing to supply chain transparency to online wine investment platforms shaping decision-making, these technological advancements are evening out the playing field by creating new opportunities in the market and appealing to a broader audience. 

For those interested in exploring this trend further, WineCap’s 2024 Wealth Report offers an in-depth look into the top motivations for investing in fine wine, the trends shaping the market, and investor sentiment.

Download your complimentary copy here. 

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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WineCap Wealth Report 2024: US Edition

WineCap US Wealth Report 2024

In an era of economic uncertainty and shifting investment trends, alternative assets are gaining unprecedented traction. The 2024 WineCap Wealth Report (US edition) offers a comprehensive analysis of the fine wine market, uncovering key trends that highlight its burgeoning appeal. As fine wine transitions from a passion asset to a mainstream investment, the report explores the demographic shifts, technological advancements, and the factors driving demand. 

Methodology and demographic

In April 2024, WineCap surveyed 50 US-based full-time wealth and investment managers to gauge their views and sentiments towards fine wine investment. The respondents included 35 wealth managers, eight financial intermediaries/advisers, and seven independent financial advisers. The research was conducted via an online questionnaire. For annual comparisons, the report takes into account responses from a similar survey conducted in April 2023.

Key findings

  • Changing demographics: One in three high-net-worth individuals (HNWIs) in the US now invests in fine wine. While some begin as collectors, the majority are experienced investors drawn to fine wine for its stability. 
  • Rising demand for collectibles: Fine wine emerged as the leading collectible asset. According to our survey, 84% of US wealth managers anticipate an increase in demand over the next year.
  • Enhanced market liquidity: There has been a 14% increase in investor confidence regarding market liquidity, driven by advanced technology that enhances the trading experience and security.
  • Stability: 74% of respondents see fine wine’s stability through different market environments as the top reason to invest in it.
  • Universal value: 92% of US wealth managers recognize the benefits of fine wine being an asset of universal value, not pegged to USD.
  • Diversity: Survey respondents indicated that greater awareness of fine wine’s role in diversifying traditional portfolios could attract more clients.

The 2024 WineCap Wealth Report underscores the growing sophistication and accessibility of fine wine as an investment. As new generations of investors seek diversification and stability away from traditional financial markets, fine wine emerges not only as a stable asset but also as a leader in the collectibles market. 

The integration of advanced technology, the expanding appeal of sustainable investing, and the strategic adjustments in response to economic conditions highlight fine wine’s unique position in the investment landscape.

Download your complimentary copy of the 2024 WineCap Wealth Report and discover how fine wine can enhance your investment portfolio.

Please fill in the form below to download your complimentary copy of the report.

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WineCap Wealth Report 2024: UK Edition

WineCap UK Wealth Report 2024

As the investment landscape continues to evolve, so too does the appeal of alternative assets. The 2024 WineCap Wealth Report reveals a dynamic shift in the fine wine investment market, driven by changing demographics, technological advancements, and a growing emphasis on sustainability.

Methodology and demographic

In April 2024, we surveyed 50 UK-based full-time wealth and investment managers on their views and sentiments towards fine wine. 35 of the respondents classed themselves as wealth managers, eight as financial intermediaries/advisers and seven as independent financial advisers. The research was conducted via online questionnaire. For any annual comparisons in the report, we have taken into account wealth managers’ responses from the same survey conducted in April 2023.

Key findings

  • Changing demographics: Younger generations and less experienced investors are increasingly drawn to fine wine.
  • Rising demand for collectibles: Fine wine is the most popular collectible asset, with 92% of wealth managers anticipating demand to increase in the next year.
  • Enhanced market liquidity: The fine wine market is becoming more liquid, with a 32% increase in investor confidence in market liquidity. Advanced technology is enhancing the trading experience and security.
  • Sustainability: Fine wine is largely perceived as a sustainable investment, with 68% of respondents citing sustainability as a top motivation to invest in it.
  • Stability: Despite economic volatility, fine wine continues to act as a stable investment option and investors appreciate its uncorrelated market returns.
  • Capital Gains Tax (CGT) changes: Recent cuts to CGT have made fine wine more attractive, with 90% of respondents noting increased interest in fine wine investment.
  • Diversity: Survey respondents suggested that greater awareness of fine wine’s role in diversifying traditional portfolios could attract more clients.

The 2024 WineCap Wealth Report underscores the growing sophistication and accessibility of fine wine as an investment. As new generations of investors seek diversification and stability away from traditional financial markets, fine wine emerges not only as a stable asset but also as a leader in the collectibles market.

The integration of advanced technology, the expanding appeal of sustainable investing, and the strategic adjustments in response to economic conditions highlight fine wine’s unique position in the investment landscape.

Download your complimentary copy of the 2024 WineCap Wealth Report and discover how fine wine can enhance your investment portfolio.

Please fill in the form below to download your complimentary copy of the report.