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‘Cool kids’ increasingly shaping global fine wine investment market

Published:  23 March, 2022

An “identity-conscious” demographic of wealthy Millennial buyers are becoming vital to the prosperity of the secondary wine market, according to a study released by Cult Wine Investment.

The firm's Alternative Wealth Report describes how 'the cool kids’ are prioritising investment choices that offer both a reliable return, and significant amounts of “cultural cache”.

It states: “Fine wine has increased in value on average 127% in the last 10 years; some buy for thrills, some buy to make the world a better place, others are looking for cultural cache – they’re young, financially powerful and they’re changing the world of investments forever.”

The analysis suggested that this emerging firmament of investors want to feel engaged by more than the financial reward, seeking out items that are 'cooler' than the average investment.

“It’s a profound shift in attitudes, experiences and expectations that’s given birth to an entirely new investor phenomenon: the Identity Investor,” the report noted.

Cult Wine Investment CEO, Tom Gearing, commented: “The pandemic has really accelerated the digital transformation of wine as a product, as a category and now as a safe bet asset. In parallel the investor’s desire for assets has evolved, imminent financial reward is no longer a dominant motivator, rather it is personal passions driving diversification within asset classes.”

He added: “We’re seeing emerging investors come to us through their love of a region or grape, but also with an expectation to experience it as they have other asset classes.”

Cult Wine Investment noted that the US is the headline market for this growing phenomenon, observing a “23% year-on-year growth in US investors, with £168k being the average investment by New York clients”.