Subscriber login Close [x]
remember me
You are not logged in.

Champagne trade share at all-time high according to Cult Wine Investment

Published:  16 November, 2022

Fine wine investment specialist Cult Wine has released its 2022 Champagne report and the investment potential “speaks for itself” according to the experts.

The stats back up the hyperbole, Champagne investments have surged by 76.6% since January 2021, more than twice the pace of the wider Liv-ex 1000 index (36.1%) and even ahead of Burgundy 150s 68.4% rise.

Once a sidenote to Bordeaux and Burgundy, Champagne’s trade share by value has hit all-time highs this year with a current monthly average of 12.8% as of September – an impressive rise from annual trade shares of just over 1% in the early 2010s.

Champagne, like the wider fine wine market, has benefitted from sustained demand during economically challenging times, as investors seek out stable, real assets amid inflation and volatility in mainstream financial markets. 

Specific trends driving Champagne prices higher include increased investment demand, luxury brand appeal and below-average production levels.

Furthermore, rare Champagnes indicate a strong correlation between age and price, according to the report. Even though there are more investment-minded buyers in the Champagne market now, Champagne’s status as a high-end celebration drink means supplies at the top end of the market dwindle as bottles are drunk, causing prices to rise consistently over time. 

The flip side of this ageing curve is that back vintage Champagnes remain scarce, thus maintaining price pressure despite high prices.

However, there is still room for growth, especially in the Asian market, which has made up just over 7% of Champagne trade so far this year (Liv-ex data). 

The influx of demand from Asia drove big rallies in Bordeaux and Burgundy over the past decade and the potential for greater growth could drive Champagne investments to new heights.