Why Burgundy Fine Wine Is a Compelling Investment: Current Performance & 5–Year Outlook.
- Daniel Ward
- Sep 7, 2025
- 2 min read
Burgundy fine wine, renowned for its prestige and scarcity, is increasingly admired not just by collectors but by savvy investors. In this blog, we’ll explore how the Burgundy 150 index (from Liv-ex) has performed recently, what’s driving market dynamics, and what the next five to ten years may hold for this coveted category from the vantage point of UK investors. Understanding the Burgundy 150 Index:
The Liv-ex Burgundy 150 tracks price movements for 15 of the most actively traded red and white Burgundies, capturing the latest vintages. It’s a sub index within the Liv-ex Fine Wine 1000, offering a reliable benchmark for regional valuation.
Recent Performance: From Bull Run to Correction:
5 Year Return - Despite recent turbulence, the Burgundy 150 has delivered a +12.4% return over the past five years.
Peak and Correction - Following a dramatic bull run culminating in October 2022, the index soared, reportedly by over 115% in the five years to October 2022, surpassing benchmarks like the FTSE 100 and S&P 500. Since that peak, the market has corrected sharply. As of early 2025, the index had dropped ~30%, more than any other regional sub index.
2025 Market Signals:
Trade volumes are up 6.4% year on year in 2025, while average trade values are down 25.6% suggesting increased activity at lower price tiers.
Bid Offer ratios are gradually improving, though still low and price spreads remain high, indicating it remains firmly a buyer’s market
What’s Driving These Trends?
Interest in White Burgundy: Whites have weathered the downturn better, holding +4.4% above January 2022levels, while reds are 21.4% below, due in part to lower price points and broader appeal.
Scattered demand: While UK investors remain involved, US buyers now lead in value share of Burgundy trade, particularly for Premier Cru.
Broader macro pressures: Rising interest rates and shakier collector sentiment have pressured prices industry wide. Burgundy, being highly speculative and correlated with prestige, faces amplified impact.
Why UK Based Investors Should Take Note:
Lower Buy In: Weaker prices and better availability now make top tier Burgundies more accessible to UK collectors.
Storied Prestige and Scarcity: Burgundy’s limited output and blue chip names ensure long term collector appeal.
Valuation Opportunities: Certain cuvées (like Joseph Drouhin’s Marquis de Laguiche 2017 2018 and Rousseau Chambertin) are attracting attention as relative value entry points.
Tax Efficiency: In the UK, discretionary fine wine is VAT exempt and falls outside of inheritance tax (subject to conditions), making it a tax savvy alternative to traditional assets.
Conclusion:
Burgundy remains one of the most intriguing fine wine investment regions. Despite recent corrections, its long term performance and prestige continue to offer compelling upside, especially for UK based collectors seeking both lifestyle and strategic value. With cautious optimism, the market shows signs of stabilising, making now an opportune moment to explore the Burgundy 150 with an eye on 5–10 year horizons.
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