Investment wine growth trend records an average 16% increase in price in the last year, compared to the FTSE 100’s 4.6% and UK property 4.7%. The value of including wine in portfolio planning is very clear, but which wines should you invest in?
Investment wine performance in 2022
The fine wine market has been shaped by rising inflation this year, doubling from 5.5% in January to 10.7% in November, dipping from a peak of 11.1% in October. This has influenced extreme volatility and the loss of billions in equity markets, but fine wine has maintained an average growth of 13.6% in 2022 to the 30th November.
Asset trends in 2022:
Asset / Index | 1 Year |
Wine, Liv-ex 1000 | 16.1% |
UK Equities, FTSE 100 | 4.6% |
USA Equities S&P500 | -15.8% |
Gold | 1.6% |
Data source: Liv-ex.com, data at 30.11.2022
The number of wines traded on the secondary market exceeded the record levels set in 2021 and wine’s reputation as a mainstream alternative asset, which can be used to hedge inflation is well and truly proven in 2022.
Which wines delivered the strongest growth in 2022?
The top ten most powerful fine wine brands delivered average price growth across their portfolio of wines from 35% to 487% in 2022.
Top 10 fine wine brands 2022 – Average price growth:
2022 Rank | Fine wine brand | Region | 2021 Rank | Av. price growth in 12 months | Av. trade price in 2022 |
1 | Leroy | Burgundy | 1 | 59.5% | £6,703 |
2 | Arnaux Lachaux | Burgundy | 62 | 487.2% | £10,110 |
3 | Leflaive | Burgundy | 13 | 94.1% | £5,519 |
4 | Armand Rousseau | Burgundy | 9 | 63.5% | £18,848 |
5 | Prieure Roch | Burgundy | 38 | 43.8% | £7,815 |
6 | Dom Perignon | Champagne | 4 | 39.3% | £2,343 |
7 | Louis Roederer | Champagne | 9 | 34.9% | £2,851 |
8 | DRC | Burgundy | 5 | 42.6% | £77,687 |
9 | Jacques F Mugnier | Burgundy | 47 | 85.8% | £6,860 |
10 | Krug | Champagne | 11 | 39.6% | £3,635 |
Source: Liv-ex Power 100 Report, 2022 (published 25 November 2022)
Champagne and Burgundy investment wines led the market in terms of growth in value and trade activity in 2022. The Liv-ex Burgundy 150 index has risen 27.4% YTD and is up 31.3% over the last 12 months to the end of November. Champagne has sparkled and on average has seen prices rise by 27.4% in the last year with much higher individual wine performances. Contrast this to the US S&P500 index plunging -19.6% YTD and the FTSE’s modest 1.4% growth.
The most traded investment wines (by value) in 2022:
| Wine | Region |
1 | Louis Roederer Cristal 2008 | Champagne |
2 | Louis Roederer Cristal 2014 | Champagne |
3 | Dom Perignon 2012 | Champagne |
4 | Chateau Lafite Rothschild 2018 | Bordeaux |
5 | Chateau Mouton Rothschild 2000 | Bordeaux |
Source: Liv-ex December 2022 Market Report
The three top traded wines by value in 2022 were Champagnes with Cristal the leading brand by value and volume.
The most traded investment wines (by volume) in 2022:
| Wine | Region |
1 | Louis Roederer Cristal 2014 | Champagne |
2 | Dom Perignon 2012 | Champagne |
3 | Tignanello 2019 | Tuscany |
4 | Taittinger Comtes de Champagne 2011 | Champagne |
5 | Louis Roederer Cristal 2008 | Champagne |
Source: Liv-ex December 2022 Market Report
Sterling strengthening this Autumn, which impacted overseas demand for fine wine in November resulting in a slow down across key regions. Value-seeking buyers drove Tuscany’s trade share on Liv-ex to a record high for 2022 at 8.1% and the region’s top performer on price rose 22.8% in the month.
Thoughts for wine investment in 2023
The year ahead is looking highly unpredictable for all markets. November 2022's UK and US inflation figures dipped slightly from October peaks, with commentators naturally being led to ask whether we can look forward to a sustained reduction in the months ahead. However, there is no certainty on this or interest rate movements to manage inflation, and we can expect more volatility for a while yet. Tangible, luxury assets like wine remain an important diversification strategy.
For more information on this detail and the opportunities for 2023, contact our expert team on 0203 384 2262 and see our December 2022 Market Report.