Where are the new opportunities for growth in fine wine investment?

Following its third consecutive month of gains, the fine wine investment market continues its upward growth trend in 2020 with July seeing an increase of 0.54% on the Liv-ex 1000; but, where are we seeing the growth in this broadening market? Italy is at the forefront, once again.

Liv-ex Graph, August 2020

According to Liv-ex, the trade value of the secondary market has grown at a compounded annual rate of 9.0% over the past 10 years, and over the same time the trade value for Italian wines has increased by 28.5%. Additionally, unique wines traded for Italy increased 153.6% from January to the end of July and in the first seven months of the year, Italian trade value was up over 70% year on year.

Here are a few reasons as to why Italy has great growth potential for the future:

  • The Italian wine trade has been immune to the effects of the 25% US tariffs on EU wines with an 14% ABV and under.
  • The wines continue to offer relative value against the top wines of Bordeaux and Burgundy, allowing the perfect opportunity for those with blue chip investment grade wines to further diversify for a profitable future.
  • The recent vintages of 2015, 2016 and 2017 are considered to set new quality benchmarks and have been highly regarded by influential critics.
  • 4 out of the 10 top performers on Liv-ex from 2020 so far are from Italy, with Sassicaia 2009 reaching new highs of £1,770 (up 14% over 6 months), Sassicaia 2010 – £1,790 (up 12%), Tignanello 2010 – £940 (up 12%) and Piedmont’s Giacomo Conterno Barolo, Riserva Montfortino 2000 – £8,964 (up 8%).
  • The value of Italian wine trade in 2020 so far has surpassed the whole of 2019, and volume is soon to follow.

With few signs of headwinds ahead, Italy seems certain to remain in focus for the rest of the year. To understand more about investing in the best performing Italian wines, contact a member of our investment team today on +44 (0) 203 384 2262 or click here download our wine investment guide.