The wine market, once booming with rising prices and attracting investors,

 

The wine market, once booming with rising prices and attracting investors, is now experiencing a significant decline in prices, hindering the entry of new investors.  The accessibility of online platforms and advisories has lowered the barriers to entry, making it easier for individuals to invest in wine, but recent data shows a decline in fine wine prices, with a 0.83% drop in June and a 2.13% decrease so far this year. The Liv-Ex investables index shows that fine wine has experienced a 10% compound annual growth rate over the past three decades, explaining the recent rise in wine investments. The decline in Chinese investment and the effects of exchange rate fluctuations on Bordeaux were the leading causes of the Cult Wines Bordeaux Index's 1.22% monthly decline and over 2% YoY decline. Cult Wines' 2022 gross sales revenue surged by 32%, surpassing $116M, with a 45% increase in managed fine wine assets currently valued at $375M. SVB's premium wine division lent over $4B to 400 winery clients but had $1.2B in outstanding loans when the bank collapsed.