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.
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