- Bordeaux’s annual trade share by value fell below 40% for the first time, due to increased competition from other regions.
- Trading activity for Bordeaux focused on the First Growths, whose share of the region’s trade rose to 35.9%.
- Château Lafite Rothschild 2018 was the most traded wine by value in 2021.
The market is more competitive than ever
The fine wine market’s sustained broadening in 2021 has meant that its dominant force – Bordeaux – has continued to lose trade share to other regions. For the first time this year, its annual trade share by value fell below 40%.
Today, the competition is stronger than ever, with 11,872 different wines (as measured by LWIN11s) trading on the secondary market. Of that, just 2,704 are from Bordeaux.
But while the Bordeaux market has been broadening, with more labels getting the attention of buyers, the majority of trade has been focused on a few key estates – namely the First Growths.
The First Growths share of trade has risen again
The First Growths have long been the backbone of both Bordeaux’s secondary market, and the fine wine market as a whole. Back in 2010, when the French region accounted for 95.7% of the total market, the First Growths took 60% of its trade by value.
However, with the advent of anti-corruption measures in China in June 2011, this share fell to 53.5%. The combination of falling Asian demand and an increasingly broader market has meant that the First Growths’ share of trade has been in steady decline since then. Last year, the wines accounted for just 32.6% of Bordeaux’s trade.
But this year the First Growths’ share of Bordeaux trade has risen again to account for 35.9%. Should the trend for Bordeaux buying continue to shrink, it is possible that the First Growth’s share will grow.
Lafite Rothschild leads among the First Growths
The First Growths have had their best year since 2018, led by Château Lafite Rothschild which has been in high demand. Lafite Rothschild has been the most traded label on the secondary market in 2021. Its 2018 vintage, scored 100-points by Lisa Perrotti-Brown MW, has been the most active wine by value.
The wine set a few trading highs in 2021 (sold as a double magnum and Methuselah). Its current Market Price stands at £8,200 per 12×75, an increase of 36.6% on its release price.
Lafite Rothschild 2018 trades on Liv-ex
Price performance holds the First Growths back
However, the overall price performance of the First Growths, and Bordeaux, has been poorer than most other regions. Lafite’s 2017 vintage has been the best-performing red wine from Bordeaux, having risen 31.5% year-to-date. By comparison, the top five price risers this year all rose over 66%.
The reasons for this are many but the continued withholding of stock from the market, especially at En Primeur, is stifling demand to some extent. A series of middling to poor En Primeur campaigns (despite some good recent vintages), also means that stock remains available at release price in many instances.
This article above is an extract from our latest report on the fine wine market in 2021. To read the full report, download your complimentary copy of our by filling the form below.
Liv-ex analysis is drawn from the world’s most comprehensive database of fine wine prices. The data reflects the real time activity of Liv-ex’s 530+ merchant members from across the globe. Together they represent the largest pool of liquidity in the world – currently £80m of bids and offers across 16,000 wines. Independent data, direct from the market.
