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Outlook for fine wine “bullish”, report finds

26 November 2024 By Arabella Mileham

Sentiments for the outlook on fine wine were “bullish”, a recent report has suggested – with around 64% of those surveyed being positive about fine wine.

This year’s Golden Vines Gala was held in Madrid’s celebrated Palacio Cibeles last month

The report (formerly known as The Gérard Basset Global Fine Wine Report) was produced by Liquid Icons based on a survey of over 1,200 international fine wine & rare spirit market players, including sommeliers & fine wine professionals, from March- June 2024.

Among the trends identified was a rising demand for fine wines around the world, according to 20% of respondents, partly on the back of the continued re-stockings of bars and by restaurants, alongside growth in consumption and spending by those who with higher disposable income who had amassed savings. There was also a general trend of greater spend per bottle of fine wine.

Fine wine continued to be seen as a safe haven investment, prompting the desire among high and ultra high net worth individuals to build private fine wine collections – “scarcity of fine wines in general, continued premiumisation and growth of interest in fine wine across sophisticated individuals in emerging economies,” it noted.

However Bordeaux is increasingly seen as “out of favour” with just under a third (27%) of respondents seeing it as the region with the greatest “downside risk” followed by Burgundy (19%), California and Australia (both on 15%).

Some of the fine wine professionals predicted a greater interest in the Italian fine wines – in part due to the “overheated Burgundy market”, as many perceived “high-end Barolo and Barbaresco as a ‘the new Burgundy’ when it comes to the top echelon of fine wines. Indeed, Piedmont was identified as the region with the most potential over the coming coming year, with 20% of respondents noting its rise, followed by Champagne (17%), Burgundy (14%), Tuscany (12%) and California (9%).

Overall, the report noted an “unprecedented level of interest in fine wine”, and younger millennial drinkers “continue to enter the fine wine segment at an unprecedented rate”. This was creating a new generation of fine wine drinkers mainly looking for artisanal, single variety fine wines from lesser known or up-and-coming regions. Interest was high in lighter, fresh offerings, often using indigenous grape varieties with less focus on new oak. Interest was high in wines made by younger vigneron, as well as organic, natural and biodynamic wines and more environmentally friendly practices, which are popular young, younger consumers.

However, alongside this was the continuing interest in alternatives drinks such as low and no alcohol beverages – and the headwinds from unfavourable global geopolitical and the macro-economic environment remained, on the back of the increasing number of conflicts across the world.