Fine-wine market posts best annual performance in five years

By Mathew Lyons

Published: 08 January, 2016

The fine wine market steadied in 2015 and is now cautiously optimistic for 2016, according to the latest report released by Liv-Ex this week.

After four years of decline, the Liv-Ex Fine Wine 100 index was flat across 2015, recording a minimal fall of 0.1%.

Compared to a range of other indices, however, the market proved notably resilient.

The Live-Ex 100 outperformed both the S&P 500 and the FTSE 100 over the year, as well as commodities such as gold and copper, all of which fell sharply in the second six months of 2015.

Bordeaux has returned to its 2004 level of market share, prior to the bubble which developed through unsustainable speculation from Chinese buyers, and the market is now showing increased interest in vintages whose prices fell precipitously as the bubble collapsed.

The success or failure of the forthcoming en primeur season will prove crucial in setting the market, although customers are likely to be wary given the losses made by en primeur investors in recent years.

Elsewhere, the Liv-Ex 1000 sub-indices are showing strong five-year growth in the Rest of the World 50, up 34.7%, and the Burgundy 150, up 32.1%.

Both of these sub-indices are now at an all-time high.

The Italy 100, with value up 15.1% over the period, and Champagne 50, up 14%, have also proved solid investments.

Italy has now become the region with the second highest average monthly trade share, with 6.7% of the market, overtaking Burgundy, which has 5.9%.

The Rest of the World more than doubled its market share from 2.3% to 5% in 2015.

US market share is now almost identical to that of the Rhône, at 2.15% and 2.18% respectively.

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