How Are Investment-Grade Wines Performing in Today’s Global Market?

The Problem: Market Volatility Meets a Niche Investment

In recent years, the fine wine market has hit turbulence. The Liv‑ex Fine Wine 1000 index is down approximately 10.1% over the past year and nearly 21% over two years, signaling a significant correction in the broader benchmark for collectible wine cultx.comCult Wines+3WineCap+3Business Insider+3. Meanwhile, the Liv‑ex Fine Wine 100 Index dropped 4.4% in the first half of 2025, falling short of industry expectations WineCap. On the consumer front, societal shifts, including anti‑alcohol sentiment and a decline in Baby Boomer consumption, have weakened demand and caused overstock in the industry The Times+8Investopedia+8The Guardian+8.

Liquidating positions isn’t easy either. Wine is inherently illiquid, with steep storage costs and complex resale logistics. A recent investor’s experience saw them struggle to move a $15,000 wine portfolio amid market downturns Business Insider+2Investopedia+2.

The Solution: Focus on Quality, Scarcity, and Timing

Despite the overall softness, certain investment‑grade wines are shining. In the first half of 2025, standout performers included Domaine Jean‑Louis Chave’s Hermitage Rouge 2021, which surged +36.8%, and Château d’Yquem 2014, up 25.7% WineCap+1. Ultra‑luxury names like Screaming Eagle 2012 (+24.4%) and Pol Roger Sir Winston Churchill 2015 (+24.4%) also outperformed, underscoring how prestige still commands power Morgan Stanley+15WineCap+15WineCap+15.

Moreover, certain Burgundy stars—such as DRC’s La Tâche 2020 (+24.5%) and Clos de Tart 2013 (+18.1%)—as well as Italy’s Soldera Case Basse 2018 (+14.3%) showed resilience, even amid broader regional corrections Cult Wines+8WineCap+8WineCap+8. This reinforces a key insight: while market-wide indices wobble, scarcity, pedigree, and brand strength continue to drive alpha in wine investing.

Historical data adds context here. Long‑term holdings of fine wine—as measured over decades—have delivered average annual returns around 10%, and even around 8.8% annualised across 5‑year periods FinanceBuzz+15Cult Wines+15Cult Wines+15. Knight Frank’s Luxury Investment Index echoes this, reporting a 146% rise in wine prices over the last decade FinanceBuzz+15cultx.com+15Morgan Stanley+15.

Institutional sentiment also remains upbeat. A staggering 96% of UK wealth managers expect fine‑wine demand to grow in 2025, a stronger signal than for any other luxury asset, and rising popularity among younger, tech‑savvy investors is reshaping the landscape WineCap+2WealthBriefing+2.

Goldman Sachs has publicly spotlighted fine wine as a portfolio diversifier and inflation hedge, especially amid today’s uncertain macroeconomic environment winefi.co+4Cult Wines+4Cult Wines+4.

Tips for Investors: Ride the Upside Safely

• Target the top-tier: Focus on wines with exceptional provenance, rarity, and aging potential, especially the ones that performed well in H1 2025.

• Consider timing: Entering the market during corrections can offer better entry points. Reported dips in prices and increasing trade volumes suggest opportunity for patient investors 

• Seek expert platforms: Use platforms like CultX or WineFi, which enable fractional ownership, data-driven insights, and syndicate investing 

• Plan for the long haul: Expect a 6 to 10 year holding period for meaningful returns. Wine values typically appreciate over time due to scarcity and maturity 

• Prioritize storage and provenance: Ensure proper climate-controlled storage and documented authenticity to preserve value and mitigate fraud risks 

Pour Strategically into Wine

The investment-grade wine market is far from uniform right now. While broad market indices are down, select premium wines and focus on those with rarity, brilliance, and cultural cachet. If you’re looking to diversify your portfolio with uncorrelated assets, wine offers both stability and upside potential, but it demands research, patience, and precision.

Ready to explore this world of alternative investing? Let Estate Wine Brokers guide you in identifying promising bottles, trusted platforms, and smart strategies to help your wine portfolio age gracefully.