The number of wines trading from Burgundy, Italy and the UK in the first nine months of the year has already surpassed the record levels achieved for the whole of 2020.
- Burgundy is the region with the highest number of wines trading so far in 2021.
- The UK has seen a large increase in the number of wines trading year-on-year.
- Other regions are on track to surpass their 2020 levels before year’s end.
Dominant forces
So far in 2021, Bordeaux leads trade by value (40% of market) thanks to the greater liquidity of its wines, but when it comes to the number of wines that have attracted secondary market interest Burgundy stands out.
Over 3,282 different Burgundian wines with a vintage (LWIN11) have changed hands year-to-date, a 10% increase on the whole of 2020.
As highlighted in our extended report published in the beginning of the year, Burgundy: A Journey of Discovery, its market has undergone a massive expansion as price conscious buyers seek value within the region’s appellations. This trend has continued into 2021 and was partly examined earlier this year.
Breaking records
Burgundy is not the only region to have already broken last year’s record.
Italy – the third most traded region by value, volume and number of wines – has an increasingly diverse and broadening market.
The number of Italian LWIN11s traded has already risen 8% on 2020, from 1,544 to 1,666. As examined in a recent post, the trend has been trade outside Tuscany and Piedmont. Italy’s underdogs will be the focus of an upcoming Liv-ex report, exclusively for members.
The rise of the other
Smaller regions have more potential for growth too. One such case is the UK, which has more than doubled the number of wines and spirits traded on Liv-ex on last year. The first trade for an English wine happened in 2016 (Nyetimber Classic Cuvee 2010). Today, the UK’s secondary market has been predominantly driven by trade for Scottish whisky (96% by value).
Meanwhile, the Rhône, Germany, Spain and South Africa are on track to surpass the levels of trade achieved in 2020.
Going under
However, it is not a positive story everywhere. Australia might have been an established secondary market player for longer than the UK, but the Chinese tariffs on Australian wine imposed earlier this year have had a detrimental impact. The number of wines trading from the region has almost halved year-on-year, as trade by value has declined.
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