As the new year gets off to an interesting start, we look at the fine wine trends predicted for 2022 to see what delights are in store for us all.
The Bordeaux Index has made its predictions for 2022, so we thought we’d share our thoughts on this with you.
Despite the remaining challenges for the world at large, the fine wine market remains strong and is, in fact, booming.
During the lockdowns of the pandemic, demand soared for fine wine consumption and investment, reportedly up by 15%. This increase has likely been caused by the closures of fine dining establishments, increased free time for consumers and investors, and increased online availability and budget.
There has been a significant increase in the Asian and US markets where the big three are concerned. Bordeaux, Burgundy and Champagne are leading the gains predicted to continue throughout 2022 and into 2023.
Take a look at what we think should be a strong focus for anyone wishing to invest in fine wines and what would be particularly enjoyable to drink.
Champagne leads the way
It wasn’t so long ago that we wrote about investing in vintage Champagne, and it looks like we were wise to do this. Champagne is now considered a serious investment for those looking to gain strong returns.
According to the Liv-ex data, the Champagne 50 sub-index finished 2021 up 40.0% and at a record high level.
This upward trend is predicted to continue through this year, showing that there was no pandemic flash in the pan. Although the bubbly has had a bit of a helping hand with being exempt from US trade tariffs, hospitality reopening, and consumers having more cash to flash and reasons to celebrate.
It’s thought that Champagne will outpace Bordeaux throughout 2022. 2002 and 2008 vintages are proving popular and too are prestige cuvées like Tattinger, Bollinger, Krug and Dom Pérignon.
The young and the popular
Speaking of Bordeaux. There’s an interesting new trend with the most classic of the fine wines. The younger vintages are outpacing, the older vintages, which is rather unusual. The trend of popular bright, young things looks set to continue throughout 2022.
The value of the younger vintages is catching up with the older vintage wines and Bordeaux is seeing a 15 percent price growth, according to the LiveTrade platform.
Fine wine market remaining robust in 2022
With any type of investment, there is always an element of uncertainty because external influences can throw things off course. However, this does not seem likely where fine wine investments are concerned.
If a global pandemic, global trade issues and supply chain issues, among other challenges, can’t slow the fine wine trade in 2020 and 2021, we doubt much will make it a downturn in 2022.
In fact, it looks like there may be more positive influences this year than any other. Despite rising inflation, taxes and interest rates, the consensus in the fine wine industry is that this will not negatively impact the fine wine investment market and that it will remain resilient as it has proven to do so compared to more traditional trades in recent decades.
Wine investing is enjoying a high time, and this looks set to continue, which will help the market remain buoyant.
It looks like lower sulphite wines are gaining in popularity, as are natural wines and organic wines. People are interested in how their wine is made; what’s its back story? How does it impact the environment, and how sustainable is it?
Traditional method sparkling wines will continue to rise in popularity, which is a positive thing because there are some exceptionally good ones out there now. This, alongside supply issues, reduced yields, will help drive up the value of Champagne even more. Also, look out for fairer trade, lighter bottles, still Champagne and sustainable winemakers, sellers, and leaders helping improve the industry, one vine at a time.
