Liv-ex, a global marketplace for wine trading, has recently reported that the confidence in the Burgundy wine market is at historically low levels. Despite ongoing trading activity, buyers are exhibiting risk-averse behavior, purchasing fewer cases at lower prices. However, the report indicates that there are early signs of sentiment beginning to stabilize, potentially leading to more favorable conditions in the future.
The Liv-ex Burgundy 150 index has seen a significant decline, dropping around 30% over the last two years. This decline is more pronounced than in other regional indices, although the index is still up nearly 17% compared to five years ago. Notably, white Burgundy has fared better than red Burgundy during this market downturn.
Liv-ex’s analysis suggests that the current lower prices might present opportunities for new wine collectors and casual drinkers. A pricing environment that is more subdued could entice more buyers and help foster long-term demand for Burgundy wines. Reports of opportunistic buyers returning to the market indicate that the lower price point is being seen as an opportunity.
In terms of recent releases, the prices for Burgundy 2023 en primeur wines have remained steady, mirroring those from 2022. While the current market reflects a plentiful crop, producers recognize that a significantly smaller 2024 harvest is expected, which has led many to avoid lowering prices in anticipation of future scarcity. However, analysts expect that as the 2023 wines begin to appear in the secondary market, their prices may decline.
For those interested in monitoring developments in the wine market, further details can be found in Liv-ex’s reports, and related articles can provide additional insights into current trading conditions and future trends in Burgundy and beyond.
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