How HNWIs found a taste for fine wine as an alternative asset
Bordeaux over bonds? Syrah instead of stocks? We investigate why cellars are becoming a new store of wealth for savvy investors
We all know, of course, that the acronym HNWI stands for ‘high-net-worth individual’, but Mark Johnson-Hill, owner of Bordeaux vineyard Château Méaume, believes it can also be used to describe two distinct types of people when it comes to fine wine.
“First, there’s the High-Net-Worth Imbiber. They see fine wine as a consumption asset – something to be served to family, friends, and future business partners. They use fine wine to impress, influence, and demonstrate their luxury credentials,” says Johnson-Hill. “Then there’s the Hoarder of Notable Wines and Investments. They collect endless amounts of fine wine, far more than they will ever drink, holding cases to admire and eventually sell.”
Overall wine sales have been weak in recent years. Data from the International Organisation of Vine and Wine shows that global consumption slipped to 208 million hectolitres in 2025, down 2.7 per cent from 213.6 million hectolitres in 2024, mainly due to US President Donald Trump’s tariffs impacting exports to the largest wine market, the US, where consumption fell 4.3 per cent. Global demand, however, also remains far below pre-pandemic levels: 236.1 million hectolitres were consumed in 2019 and 241.9 million hectolitres in 2018.
Despite the decline in wine consumption, there are signs that wealthy people are finding fine wine a more palatable asset to add to their portfolios. According to WineCap’s 2026 annual wealth report, wealth managers across the UK and US have indicated that over a third (36 per cent) of their clients are currently dedicating between 21 per cent and 30 per cent of their portfolios to fine wine. This is a sharp increase from 2025 when just 2 per cent had exposure of at least 20 per cent.
WineCap puts this down to more investors recognising that fine wine can be a key defensive play. The survey shows that for the first time, 5 per cent of investors with an ‘extremely aggressive’ risk profile now have exposure to fine wine for the ‘calming effect’ it can have on their portfolios.
What makes fine wine a palatable asset?
The big attraction of buying and holding fine wine is that “it’s one of the few assets that improves with age, both financially and gastronomically,” says Johnson-Hill.
Peter Lunzer, a wine expert with more than 40 years’ experience in the industry, adds that “fine wine is not a particularly liquid asset, forgive the pun. It doesn’t produce a dividend, and there’s a cost to carry, but it does have characteristics that appeal to many.”
Most notably, fine wine can act as a reliable store of wealth thanks to its market dynamics. There will always be demand for vintages such as 1982, 1989 and 2005, for example. “The best seductively drinkable wines are those that someone is willing to buy again so they can consume them one more time,” argues Lunzer. And, because there’s finite availability of these vintages, every bottle that is uncorked pushes prices higher as demand outstrips supply.
What’s pushing UK HNWIs to allocate more of their portfolios to fine wine?
The abolition of the UK’s non-domicile tax regime in April 2025 is having a notable impact on the number of HNWIs interested in fine wine. Six in 10 (61 per cent) of the wealth managers surveyed by WineCap indicated their clients were “prioritising investments that can move as easily as they do”.
As Eric Croak, president of fiduciary advisor Croak Capital, explains: “Fine wine isn’t rooted to one country. A portfolio valued at $5 million can live in a vault in London, Geneva or Singapore. It can be transported between them without a taxable event in most cases.
“Beyond this, it’s the optionality that’s attractive,” he adds. “Portable wealth allows a family to change their domicile without being forced to unwind their portfolio.”
Another reason more HNWIs in the UK are turning to fine wine is the fact it’s defined as a ‘wasting asset’ under UK law, which means it’s usually exempt from capital gains tax. A wasting asset is any tangible property that has a lifespan of less than 50 years. According to 23 per cent of the wealth managers surveyed by WineCap, the wasting asset status will ‘significantly’ increase demand for fine wine investment among their clients, while 72 per cent indicated that fine wine’s appeal will increase ‘somewhat’ because of it.
Is now a good time to invest in fine wine?
It has been a challenging period for fine wine prices. The Liv-Ex Fine Wine 50 index was down 20.25 per cent in the five years to the end of June. The industry’s leading benchmark tracks the daily price movements of the Bordeaux First Growths, which are the 10 most recent vintages from the five most prestigious estates in the French region: Haut-Brion, Lafite-Rothschild, Latour, Margaux, and Mouton-Rothschild.
The good news is that prices are stabilising. The index is down just 0.12 per cent since the start of 2026 and up 0.97 per cent in the past 12 months. The current price level could present a good entry point for HNWIs looking to start their fine wine journey, especially as there should be plenty of opportunity for vintages to appreciate in value in the coming years.
Ultimately, the decision to buy fine wine is going to come down to whether HNWIs are collecting bottles to hoard and admire or to imbibe, says Johnson-Hill. “Depending on which type of HNWI you are, it will influence your view and drive your approach to exploring and buying fine wines.”
