Liv-ex, the fine wine market equivalent of the Stock Exchange, has published record trading levels in August 2019. The market reached a new trading peak of a total of £71million, representing over 14,000 live markets (active bids and offers).
This is an important measure for Liv-ex as the world’s leading fine wine trade exchange facility. They also report that this level represents a growth of over £20million since this benchmark was last measured in October 2018. The bid : offer ratio currently stands at 1 : 3 and is also on the rise, pointing to increasing market strength and price stability.
Some of this growth may be attributed to the developments Liv-ex has invested in to improve efficiency for its trade members and they point to automated trading as being a key initiative enabling merchants to improve their stock offerings, 24-hour trading and other benefits.
The number of active markets is an important indicator of growth and the fact that the market is evolving with the capability to respond to demand for a broadening range of wines from different regions.
In terms of the market share of that growing market – Burgundy continues to benefit from growing demand for the wines of the region, with average market share increasing from 14.5% in 2018 to 18.4% in 2019. The annual peak for Burgundy’s share so far this year on Liv-ex was 22.6% in May. Bordeaux’s trade share has had a range of 55 – 62% this year so far and Champagne, while prices have sustained stable growth, the volume of trade has had a bit of a roller coaster, with its lowest measure of trade share in April at 4% to a height of 19.3% in June – it could be the summer party season made a difference; Royal Ascot management published their trading figures for June this year reporting record wine sales.
Suffice it to say, Liv-ex is aiding market efficiency and providing important data to help further understand current trends in demand and price performance.