The Drinks Business: Market Challenges Persist, But Core Wine Investment Fundamentals Hold Firm

In a recent Drinks Business feature, Bordeaux Index’s Head of Investment and CEO of LiveTrade, Matthew O’Connell, weighed in on the current state – and possible recovery – of the fine wine market. Despite a prolonged 30-month period of price declines, there are growing signs of resilience and renewed investor interest in the sector.

The article explores the findings of WineCap’s latest UK Wealth Report, which positions fine wine as the most sought-after collectible among UK high-net-worth individuals (HNWIs), with 96% of wealth managers predicting further growth in 2025. While short-term headwinds such as global trade disruption and macroeconomic uncertainty remain, WineCap suggests that wine’s exemption from Capital Gains Tax is helping drive increased attention.

“It’s hard to be overly optimistic, given the recent market headwinds, but, as the saying goes, it’s always darkest before the dawn.”

The unprecedented duration of the current market downturn has undeniably taken a toll – particularly in young Bordeaux, which is now “trading below release price.” However, there is still meaningful buyer activity where pricing aligns with market reality.

“We’re confident that genuinely top, blue-chip wines, now at far more compelling prices, will continue to find an enthusiastic audience,”

The article also touches on changing demographics in the wine investment space. A younger, tech-savvy generation of investors is beginning to engage with fine wine as a legitimate asset class, a shift the industry must embrace.

As super-premium Burgundy and mature Bordeaux continue to see steady trade on our trading platform, LiveTrade, the groundwork may be in place for a broader recovery – for those well-positioned to capitalise when it comes.

Read the full article on The Drinks Business: Darkest Before the Dawn – Fine Wine’s Sound Fundamentals