Future Prospects
It may only be 2012, but it looks like the 21st Century will belong to China. With its economy set to outpace the United States as early as 2025 and nearly a quarter of the World´s population speaking Chinese, signs of China´s new status as a World superpower are everywhere.
According to a recent report by Capgemini and Merrill Lynch Global Wealth Management; the number of high net worth individuals (HNWIs) grew 8.3 per cent to 10.9 million in 2010, whilst their financial wealth rose 9.7 per cent to US$42.7 trillion. Although this represents more moderate growth than that seen in 2009 and 2010, recent gains have propelled financial wealth beyond pre-crisis highs.
The Fine Wine market will continue to grow not only due to new investors but the growing numbers of global middle class consumers who are expected to continue spending within the luxury-goods arena. Rolls-Royce, Jaguar, as well as LVHM have all projected high demand for their products - the very finest Bordeaux Claret is no exception.
The Chinese now account for around 60% of all Fine Wine sold. This compares to about a third of buyers coming from China prior to the financial crisis.
Hong Kong and China are not the only emerging markets for Fine Wine in the East, the Russians are already heavily involved - as are Japanese consumers, but there is a growing level of interest by Brazil, India, Korean and Filipino investors; in a market that has historically been reserved for European and US investors.
Fine Wine sales are booming in the UK as well as China, as investors shy away from the more traditional markets. Turnover in the UK market for Fine Wine almost doubled in 2010. Demand for the very expensive 2009 and 2010 vintages has predominantly risen from the UK- where buyers are looking both as an investment and to drink. However, strong interest within the En-Primeur market is now coming from the Asian buyers and we believe this trend only to continue.
RECENT MEDIA ATTENTION TO THE FINE WINE MARKET ONLY ECHOES WHAT IS ALREADY KNOWN AMONGST VETERANS OF THE BUSINESS:
FINE WINE IS ONE OF THE SAFEST BETS AROUND!
