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WineCap Q1 2024 Report: A summary

Published:  18 April, 2024

Wine investment firm WineCap has released its Q1 2024 Fine Wine Report offering a comprehensive market overview.

According to WineCap’s in-house data, the first quarter of 2024 witnessed a notable shift towards recovery, characterised by several factors including resilient economic growth and the anticipation of future interest rate cuts. This resurgence, though gradual, marked a departure from the challenges of previous quarters, offering a glimmer of optimism for investors.

Against a backdrop of global economic fluctuations, mainstream markets exhibited resilience, buoyed by promising economic indicators and expectations of interest rate adjustments by major central banks. Bond and equity markets closed the quarter on a positive note, with investors eyeing potential opportunities amid geopolitical uncertainties.

The Liv-ex 100 index, a key barometer of market performance, experienced a modest decline of 1% in Q1 2024, signalling a more stable trajectory compared to the 4.2% fall observed in the previous quarter. Notably, March saw a modest uptick, with the Liv-ex 100 index registering a 0.4% increase, driven primarily by wines from California, Tuscany and the Rhône.

Regional Trends and Developments:

Italian Wine Renaissance: Italy emerged as a beacon of hope within the fine wine market, with rising demand attributed to a flurry of new releases, including the highly acclaimed Sassicaia 2021, which garnered a perfect 100-point score.

Champagne Revival: Several Champagne labels that had experienced consistent declines in the past year, such as Dom Pérignon and Salon Le Mesnil, showed signs of recovery, signalling a potential turnaround for the region.

Bordeaux and Burgundy Focus: Critics released comprehensive reports on Bordeaux 2014, offering insights into the evolution of wines from the region. Additionally, Bordeaux 2021 in-bottle scores generated significant buzz, paving the way for the upcoming En Primeur campaign. Meanwhile, Burgundy’s 2022 En Primeur campaign shows promise, with select producers adjusting pricing strategies amidst market challenges.

Geopolitical tensions: The lifting of tariffs on Australian wine by China after a prolonged period of tension marked a pivotal moment for the Australian wine industry, opening doors to renewed trade opportunities and market expansion.

Outlook for Q2 2024:

As critics and trade gear up for the Bordeaux En Primeur 2023 tasting, the focus in Q2 will largely be on Bordeaux. The campaign, expected to kick off soon, invites comparisons with previous vintages and often stirs interest in the secondary market as buyers seek value. This year, amidst economic challenges and a subdued market sentiment, Bordeaux’s performance will be closely watched. Can Bordeaux 2023 breathe new life into the market? Only time will tell.

Apart from Bordeaux, investors will continue to monitor interest rates, weighing their options for portfolio diversification. The fine wine market, historically offering stability alongside substantial gains, has shown signs of movement, particularly in regions like Italy, Champagne, California and Burgundy.

WineCap’s full Q1 2024 Fine Wine Market report can be read here.