Cult Wines' latest market analysis reveals pivotal shifts in the fine wine industry, offering new insights for buyers, collectors, and investors
Cult Wines, a global leader in fine wine investment, has released a detailed analysis of the wine market in 2023. The CultWine100, powered by Wine-Searcher, the world's most extensive source of powerful wine pricing data, examines the top one hundred most searched wines, a significant portion of the investment-grade wine market. By analysing the price change of 2,700 wines in 2023, (all vintages released over past 30 years), Cult Wines provides an in-depth understanding of the market's movements and trends, shedding light on the evolving landscape of wine investment.
Summary
- 2023 Downturn: The top 100 wines on average saw a -6% drop in 2023, with only 12 wines posting a positive change and more than 25% decreasing by over 10%. Contrasting with 2022's +15% growth.
- Strong long-term returns: Despite a fall in 2023, almost all wines posted a positive 3-year and 5-year change, with the top 100 averaging (+30.2% over 3 years and +40.5% over 5 years respectively).
- Regional Variance: Champagne and Burgundy experienced significant downturns in 2023, while Italy and the USA demonstrated market resilience.
- Vintage Preferences: Younger vintages (2017-2020) declined sharply in price, in contrast to the more stable prices of older, less available vintages from the 1990s and 2000s.
Wine's 2023 Downturn Marks Stark Contrast to Past Success
In 2023, the CultWine100 faced a significant -6% decline, in striking contrast to the +15% growth of 2022. This downturn varied among individual components, with some wines and vintages experiencing much steeper declines. However, the broader perspective remains optimistic. Over 3 and 5 years, the top one hundred wines showed average returns of +30.3% and +42.5%, underscoring the potential of fine wine as a medium to long-term investment. While 2023 posed notable challenges, careful investment strategies in 2024 and beyond could see favourable market adjustments resulting in short term positive returns.
Best and Worst Performing Wines of 2023
In 2023, Lebanese wine, Chateau Musar saw the biggest increase in price over the year, with an average price change of +34.2%. The top three was rounded out by Caymus +16.1% and Le Pergole Torte +15.25%. Chateau Rayas was the worst performer, with prices on average declining -34.6% in 2023. Burgundy also suffered, with Domaine de la Romanée-Conti prices dropping -15.1% in 2023. First Growth Bordeaux were a drag on Bordeaux as a whole, falling -9.4% in 2023, and Pomerol icon Petrus was the biggest faller for Bordeaux at -13.5%.
Wine Region Dynamics in 2023
Champagne and Burgundy faced sharp downturns of -8% and -15%, respectively in 2023, marking a shift from their previous soaring performance. Despite this, Burgundy still recorded a +57.1% gain over the past 3 years, and Champagne an impressive +83.5% over 5 years. Bordeaux continued its stagnation, declining by -5.3%. In contrast, Italy and the USA demonstrated resilience, with minor price adjustments reflecting stability amidst a declining market. This highlights the varied regional impacts within the fine wine market and its potential areas for growth.
Younger Vintages Hit Hardest While Classics Stand Firm
In 2023, younger vintages (2017-2020) saw price declines, exceeding -10%, while older vintages from the 1990s and 2000s remained steady. This trend highlights a buyer preference for mature and rarer wines. Factors such as ample stock, rising interest rates, and a shift towards immediate consumption contributed to this pattern. Additionally, supply limitations and elevated initial pricing put significant pressure on younger vintages, resulting in the substantial declines.
Tom Gearing, CEO of Cult Wines, reflects on the challenges faced in 2023 within the fine wine market. He notes:
"Despite these challenges, our analysis reveals a promising trend. Over a 3 or 5-year period, fine wine has displayed noteworthy price appreciation, surpassing the long-term trend of 8-10% annualised returns. Looking ahead into 2024, with potential interest rate cuts on the horizon and enticing opportunities for buyers, we anticipate a positive shift in the wine market. This year could serve as a catalyst for renewed momentum and growth, setting the stage for a promising future."
For individuals interested in exploring the findings of Cult Wines' 2023 fine wine market review, you can read the full report here. This report includes key takeaways, spotlights on wines and producers, along with informative graphs and ranking tables. It provides a comprehensive analysis of the market's performance and trends, offering valuable insights for individuals interested in fine wines and investors alike.
About Cult Wines
Founded in 2007, Cult Wines is forging the future foundations of the fine wine market by creating products and experiences that unlock opportunities for producers and consumers. Empowering people through technology, data and access to a global community, Cult Wines endeavours to re-define the fine wine market making it accessible, secure, and rewarding. Headquartered in the UK, Cult Wines has offices in Canada, China, Hong Kong, Singapore, and the US supporting clients in more than eighty countries.
About Cult Wine Investment
Cult Wine Investment, the world's leading fine wine collection and investment management company, is setting a new industry standard. The award-winning company, which manages a fine wine collection worth more than £300m GBP, makes collecting and investing in fine wine as enjoyable and rewarding as the wine itself. Combining a love of fine wine and market-leading industry knowledge with the latest technology, Cult Wine Investment analyses and unlocks the market for clients around the world. Wine collectors and investors alike choose Cult Wine Investment not merely for the extensive financial expertise, but for the shared passion for fine wine, and access to likeminded wine lovers, renowned experts, exclusive events, and bespoke experiences.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240110844218/en/
Contacts:
Jody Richardson
Email: jrichardson@cultwines.com
Website: www.wineinvestment.com