Fine Wine Market Sees Q3 Decline, Bordeaux Hit Hardest

2 min read | October 24, 2024 09:12 PM AEDT | By Team Kalkine Media

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Fine Wine Market Sees Q3 Decline, Bordeaux Hit Hardest — Image source: Shutterstock

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Highlights:

Fine wine prices dropped by 4% in Q3 2024, with Bordeaux seeing a 4.4% decline.

Champagne saw a modest increase of 0.4%, bucking the broader market trend.

French wine production is set to drop significantly, particularly in Burgundy and Bordeaux, due to adverse weather.

Fine wine prices continued to decline in the third quarter of 2024, with the market experiencing an average drop of 4%, according to WineCap's latest report. Bordeaux wines were the most affected, seeing a 4.4% drop, while Champagne stood out as a positive performer, with a modest 0.4% increase. The broader wine market downturn follows several years of strong growth, now impacted by economic pressures and market corrections.

WineCap noted that demand for high-quality wines remains strong, and regions like Bordeaux continue to hold significant market share despite the recent dip. The company is optimistic about a potential market recovery in the near term, driven by renewed interest in back vintages that have become more attractive after recent price corrections.

Looking ahead to the fourth quarter of 2024, WineCap analysts predict market stabilisation, particularly for top-performing wines. Some of the standout performers for the year include the 2004 Krug Vintage Brut, which saw a 21.6% increase, the 2012 Domaine du Pegau Châteauneuf-du-Pape, up 21.2%, and the Sassicaia Tenuta San Guido, which rose by 21%.

Meanwhile, the most expensive wines in the third quarter included Domaine Leroy Romanée-Saint-Vivant, priced at £103,844, and Domaine d’Auvenay, Mazis-Chambertin, valued at £93,818.

French Wine Production Faces Challenges

While wine prices are falling, the French wine harvest is set to be one of the smallest in recent history due to adverse weather conditions. Burgundy’s output is projected to drop by 25% compared to 2023, and Bordeaux is expected to see a 10% decrease, marking its lowest production volume since 2017.

WineCap pointed out that historically, such scarcity in Burgundy has driven price increases in the secondary market, as collectors rush to secure rare wines. However, the current economic downturn may temper this trend, with selectivity becoming crucial for buyers. In Bordeaux, smaller harvests traditionally support price stability for premium wines, but broader market conditions may limit price recoveries, especially for mid-tier labels.

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