What to Expect for Fine Wine Investments in 2022

by Jan 14, 2022News0 comments

Let’s face it, between an ongoing COVID pandemic, erratic markets, fires, floods and major humanitarian crises, 2021 was exhausting. And though none of us can be sure what to make of 2022, we can say with confidence that fine and rare wine investments are looking quite promising.

According to Wine Intelligence, a leading research and insight provider on all things in the wine business, we will continue to see an increase in the premiumization of wine, with consumers willing to spend more on quality over quantity. Producers are putting their focus on quality as well, trying to find a sustainable solution to continued decreases in yields due to extreme weather and overall climate change. With all sights locked in on buying and producing fine wines, Alti Wine Exchange is preparing for an active 2022!

We’ll get into our upcoming shift from token to cryptocurrency exchanges soon, which will certainly enhance this platform. But first, what to expect in the 2022 fine wine market on a macro level.

 

The Expansion of the Fine Wine Segment

We continue to see a growth in top lot prices, with auction house Hart Davis Hart’s senior vice president Marc Smoler noting “Top lot prices are rising across the board, with some regions realizing more than 50 percent growth, and this momentum shows no signs of slowing.”

 

Indeed, per The World of Fine Wine Magazine, “the average top lot price in the first nine months of 2021 reached $148,607.” People are paying top prices for top wines. Demand for hard assets is increasing. The market for fine wines is growing. Which is all to say, your investments have a promising future.

 

More Variety within the Fine Wine Segment

It’s not just Burgundy or Bordeaux anymore. There’s a whole world of wines worth investing in, with ample offerings coming from countries such as Italy and sub-regions like Champagne. A quick look at our portfolio will reveal rare wines from around the world, from Portugal to Chile, so don’t be afraid to diversify.

This increase in offerings is great news, as it provides a solid foundation for successful and stable long-term investments.

 

Live Auctions are Back

According to The World of Fine Wine Magazine, “live auction revenues in the first three quarters of 2021 reached $314 million, exceeding figures for the same period last year by 37 percent…” Strength in this segment can certainly be seen in the United States, where Acker Merrill & Condit reported revenues of $99 million from live sales in the first nine months of 2021, “representing a growth on figures for the same period last year of 50 percent.”

However, as we saw in 2020, this segment is susceptible to taking a hit in these uncertain times, providing ample opportunity for fine wine investment firms such as ours. So perhaps most important to note is that the interest in fine wine is alive and well, but we suspect investments will shift from auctions (in-person or online) to online trading.

 

High Prices for Prized Origins

As demand increases and supply decreases, we’re definitely going to see prized regions such as Burgundy trading for top prices even among their young vintages.

 

The Time to Invest is Now

Suffice to say, while we have no clue where 2022 is headed overall, we are feeling great about the future of fine and rare wine investing. There is more interest with more offerings than ever before and now is the perfect time to jump in and build your portfolio.

Again, we have some exciting changes coming soon, so stay tuned and have a wonderful year!

 

 

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