The 1275 team had the pleasure of gathering friends in Geneva last week at an Investor Evening to discuss investment strategies for 2025 and beyond. As the fine wine market has seen some big shifts in the past few years, the time is right to reassess methodologies, and define a new modus operandi for the next era of fine wine. Prices have dipped, but opportunities remain strong for those who know where to look, and how to source. Here’s what you need to know heading into 2025.
From Boom to Correction
Over the past two years, the fine wine market has experienced a significant price correction, bringing values back to 2020-2021 levels. This follows an unprecedented surge during the COVID-19 pandemic, when collectors channelled disposable income into wine acquisitions, driving prices upward. As post-pandemic economic realities set in – rising interest rates, inflation, and geopolitical uncertainties – many investors opted to cash out, leading to an oversupply and price deflation. This shift, while challenging for short-term investors, presents an opportunity for those with a long-term perspective. Historically, wine has thrived in low-inflation environments, but its resilience as a real asset remains compelling in today’s uncertain financial landscape.
2025: A Buyer’s Market
Despite lingering headwinds driven largely by a lack of investor confidence in the UK, 2025 is shaping up to be an attractive entry point for fine wine investment. In the short-term, producers – particularly in Bordeaux – are keen to rekindle market momentum, creating opportunities to acquire ultra-exclusive wines with age at favourable prices. In the long-term, competition will continue to increase for direct access to high-quality wines, as the world’s wealth pool grows, and wine production declines. The impact of climate change on future supply dynamics, as well as on the style and quality of wines, should not be underestimated.
Smart Investing
Success in fine wine investment today requires a more selective approach than in past decades. Blanket appreciation across all wines is no longer a given – today’s new investment era commands strategic selection, and thus a higher level of expertise. The focus should be only on the best of the best from recognised producers that will stand the test of time in 20-30 years. Sourcing directly from domaines, rather than in the secondary market, ensures authenticity and quality. Impeccable provenance has become a non-negotiable factor in fine wine appreciation, with pristine wines commanding increasing price premiums. As awareness grows, future collectors will continue to prioritise transparency, further driving the demand for rigorously vetted, ultra-rare wines.