The fine wine market is expected to grow by 10% in 2012, as strong value buying opportunities for wine lovers and investors emerge, according to a global survey.
Taking in the opinion of 120 leading fine wine merchants, auction houses and investment fund managers in Asia, Europe and the Americas, the survey shows an overcorrection in the second half of last year has led to attractive opportunities for buyers.
The Fine Wine Market Outlook 2012 is a joint report by journalist-based intelligence service Wealthmonitor and online magazine Wine Yields.
Just under 60% of respondents said they expected the fine wine market to increase in value over the year, with most expecting gains of 10%.
Only 12% expected the market to fall further.
The majority of those surveyed felt last year’s en-primeur campaign damaged consumer sentiment to the sector and believed significant price reductions were necessary for the 2011 campaign to restore consumer favour to Bordeaux.
Asian respondents said that a 10% decline would suffice to restore consumer faith, while Europeans felt reductions of 20% or more were necessary.
Despite the Bordeaux backlash, the survey showed only limited shifts away to other wines, with respondents earmarking Bordeaux to lead market gains in 2012.
“After two years of strong growth in 2009 and 2010, indices for investment grade wine closed 2011 down 10-20% for the year, with some wines recording a fall of 45%.
“The report suggests that sectors of the market have been oversold, providing some of the best buying opportunities wine collectors and investors have seen in several years,” said Wine Yields publisher Jackson Taylor.
“The survey confirms that the top Bordeaux estates still enjoy strong support. This is encouraging news after last year’s controversial en primeur campaign. The strong message to Bordeaux is: get this year’s en primeur pricing right,” Taylor added.
The fine wine market is currently valued at US$4 billion a year.