The Market Today

The Fine Wine market is estimated at US$3 billion annually – a figure that has trebled since 2004. Traditionally, the market was concentrated in northern Europe, but with globalisation it has spread to the US, Japan, SE Asia and more recently to emerging economies like China and Russia. Traditional markets in Europe and US have been recovering, leading to global demand rising to a much higher level than ever before. Liv Ex 100 is steadily rising and in the last 12 months the index is up 41.1% and at an all time high.

 

 

 MARKET INDEX CALCULATION

The Liv-ex Fine Wine 100 Index is the industry’s leading benchmark. It represents the price movement of 100 of the most sought-after Fine Wines for which there is a strong market and is calculated monthly. The majority of the index consists of Bordeaux wines – a reflection of the overall market – although wines from other regions like Burgundy and the Rhone Valley are also included. The index is calculated using Liv-ex Mid Prices and is then weighted to account for original production levels and increasing scarcity as the wine ages. As such, the index is designed to give each wine a weighting that corresponds with its impact on the overall market.

The index has moved from 106.12 to 308.21 a jump of 191% in 5 years. Almost 38.2%/annum. In comparison the FTSE 100 has changed from 5317 to 5752 up 8.25% and S & P from 1220 to 1064 de-growth of -4.75%.