Liv-ex, a global marketplace for wine trading, has reported that the confidence in the Burgundy wine market remains low. Buyers are being cautious, purchasing fewer cases and opting for lower prices. While the market sentiment shows signs of stabilizing, it is still concerning, with the Burgundy 150 index dropping around 30% over the past two years. Notably, white Burgundy wines have performed better than reds during this downturn.
Despite the low confidence, there are indications that prices may be reaching a level that could entice new trades. Liv-ex suggests that this could pave the way for increasing interest from a new generation of collectors and buyers, as lower prices might broaden the appeal of Burgundy wines. However, recovery in the market is expected to require a longer period of stability for confidence to return.
Interestingly, while secondary market prices have been declining, the release prices for Burgundy 2023, during the en primeur campaign, remained steady compared to the previous year. Producers are likely holding their prices firm because of a limited harvest anticipated for 2024. Analysts expect that once the 2023 wines hit the secondary market, their prices may soften.
For those looking to track the market, Liv-ex’s reports and indices provide ongoing insights into the state of Burgundy and fine wine pricing overall, highlighting opportunities for both collectors and new entrants in the market.