The Q4 Wine Market Report

Scope of the report 👇

• Global macroeconomic developments and their impact on fine wine markets.

• Detailed performance analysis by key regions - Burgundy, Bordeaux, Tuscany, Champagne, California, and Piedmont.

• Market data on volatility, pricing dynamics, and supply-demand trends.

• Key indicators and strategic considerations for the year ahead.

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Market Overview

While the fine wine market faced headwinds in Q4 2024, with the market index recording a -3.06% decline, signs of stabilisation have emerged. The proportion of wines maintaining stable prices rose to 37% by the end of Q4, up from 27.8% in Q2, reflecting improved resilience across the broader market. This increase in price stability, alongside moderating levels of volatility in key regions, suggests that the market may be transitioning towards a more balanced phase.

Although economic uncertainty and global political instability weighed on investor sentiment throughout 2024, the underlying fundamentals of the fine wine market remain robust. The scarcity of high-quality wines and the sustained demand from collectors and investors indicate long-term potential for price recovery.

Regional Performance Breakdown:

• Burgundy: The region saw a quarterly decline of -3.54%, continuing its downward trend from earlier in the year. Despite its historic strength, Burgundy remains highly volatile, reflecting price corrections after periods of exceptional growth.

• Bordeaux: Bordeaux posted an annual decline of -10.77%, reflecting a challenging year shaped by weaker global demand and pricing misalignment during the En Primeur campaign. This represents a significant downturn, with the report highlighting consistent quarterly declines throughout the year.

• Champagne: After a period of strong growth in 2021 and 2022, Champagne experienced a -6.18% annual decline. However, Q4’s performance (-2.73%) suggests signs of stabilisation, with lower volatility compared to previous quarters.

• Tuscany: With a modest Q4 decline of -1.12%, Tuscany continues to exhibit resilience, supported by strong demand for Super Tuscans and low price volatility.

• California: The region faced a quarterly decline of -1.65% and a -7.58% annual drop. While high-profile labels such as Screaming Eagle remain sought-after, the overall market has been impacted by global economic factors.

• Piedmont: The region posted a Q4 decline of -2.73%, with its year-to-date performance down -4.35%. Piedmont’s premium Barolo and Barbaresco wines continue to attract collector interest due to their ageing potential and relative affordability compared to Burgundy.

Key Insights and Investor Considerations:

• Stabilising Prices: The percentage of wines maintaining stable prices rose from 27.8% in Q2 to 37% in Q4, indicating improved market stability despite overall declines.

• Potential Entry Points: The correction in high-value wines, particularly from Burgundy and Bordeaux, presents potential opportunities for investors with a long-term outlook.

• Resilient Regions: Tuscany and Piedmont remain key regions of interest, with lower volatility and consistent demand supporting relative stability.

Conclusion

The Q4 2024 report illustrates the complexities of the current market environment, characterised by both risks and opportunities.

Regions such as Tuscany and Piedmont have demonstrated resilience, while price corrections in Burgundy and Bordeaux may signal attractive entry points.

The outperformance of the 2015 Bordeaux vintage highlights the importance of asset selection.

As we move into 2025, strategic positioning and careful stock selection will be critical to capitalising on market recovery trends.

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