Currently, the fine wine market is witnessing unprecedented demand, driven mainly from emerging markets becoming involved in drinking and collecting, especially those of the BRIC markets (Brazil, Russia, India, China) Recently, the leading wines that have long proven track records in accruing value have performed very well comparatively against more traditional investments.
Wine, once consumed, cannot be replaced. Certain wines have extremely low production and a Chateau cannot produce more of a previous vintage, so when a wine is consumed over time, global stock depletes, yet demand remains constant or grows, the natural result is as the stock becomes more scarce the price will generally increase.
Greater exposure from new centres of wealth is fuelling demand for the most prestigious labels as people discover wine is not just a good tangible asset to hold, but an enjoyable social asset of pleasure and personal reward. With the most exclusive vineyards producing 3,000 cases and the majority producing under 15,000 cases annually, it is not difficult to see how demand can easily outstrip supply as the market continues to grow.