Luxury Wine Market Struggles as Prices Drop 9% in 2024, With China’s Weak Demand to Blame

Prices of high-end wines have continued to plunge this year, following last year’s significant drop, due to weak demand from China.

The Financial Times reports that the Burgundy 150 index, which tracks premium Burgundy wine prices, plummeted 14.4% from early this year to the end of November, according to Liv-ex data, a global fine wine exchange. The Vintage Champagne index fell 9.8% in the same period, while the more comprehensive Bordeaux index declined 11.3%.

The Liv-ex Fine Wine 100, which reflects the atmosphere of the luxury wine market, also fell 9.2%.

Experts attribute this decline to China’s economic slowdown, which has led to belt-tightening among Chinese consumers, who used to be big spenders in the luxury market. Following 2023, the fine wine market struggled to rebound from market stagnation for the second year, hit by high interest rates and lower Asian demand.

During periods of high interest rates, non-yielding assets like wine tend to become less attractive as investment options. Meanwhile, global stock markets surged by 20% over the same period.

Gregory Swartberg, CEO of Crü Wine, said, “It’s been super tough. November [2024] was one of the worst months of the year. We’re not out of the woods yet, suggesting that the industry’s recession is far from over.