Fine Wine Market Report: August 2026 Update
Updated
This fine wine market report covers August 2026. Your portfolio faces a market where top indices show stability, but underlying movements reveal both gains and losses across regions. The Liv-ex Fine Wine 100, an industry leading benchmark, reads 320.8, up 0.3% on the month and 0.4% year to date, as reported by Liv-ex. The broader Liv-ex Fine Wine 1000, which tracks 1,000 wines from across the world, sits at 350.7 on the same Liv-ex board, down 0.1% on the month and up 0.3% year to date. These headline figures suggest a flat market at the top, yet individual categories and vintages within the market are experiencing varied performance, which can significantly impact your holdings.
What do the August 2026 index readings say, basket by basket?
Eleven of the twelve baskets Liv-ex publishes are positive over twelve months, but all twelve are negative over two years. Only three indices are positive over five years: the Champagne 50, the Italy 100, and the Burgundy 150. The Liv-ex Fine Wine 50, which tracks the ten most recent vintages of Lafite Rothschild, Margaux, Mouton Rothschild, Haut-Brion, and Latour, shows the deepest five-year decline among the major indices.
The table below, based on data from Liv-ex, details the current values and performance across various timeframes for key fine wine indices:
| Index | Level | 1 month | Year to date | 1 year | 2 years | 5 years |
|---|---|---|---|---|---|---|
| Liv-ex Fine Wine 50 | 289.7 | 0.2% | -0.1% | 1.6% | -10% | -22.4% |
| Liv-ex Fine Wine 100 | 320.8 | 0.3% | 0.4% | 3.3% | -6.8% | -7.4% |
| Liv-ex Fine Wine 1000 | 350.7 | -0.1% | 0.3% | 1.2% | -9% | -7.9% |
| Bordeaux 500 | 275.2 | -0.3% | -0.3% | -0.4% | -12.3% | -18.3% |
| Bordeaux Legends 40 | 359.4 | n/a | -0.9% | 0.1% | -8.2% | -12.1% |
| Burgundy 150 | 611.6 | -0.3% | 0.8% | 1.9% | -9.1% | 3.1% |
| Champagne 50 | 500.7 | 0.9% | 1.6% | 2.6% | -8.4% | 8.7% |
| Rhone 100 | 174.6 | 1% | -0.4% | 4.6% | -2.7% | -18.3% |
| Italy 100 | 350.3 | -0.3% | 1.5% | 2.9% | -4.2% | 4.6% |
| Rest of the World 60 | 272 | n/a | 0.7% | 0.4% | -9.7% | -11.7% |
| California 50 | 299.7 | 0.6% | 1.7% | 2.1% | -9.6% | -7% |
| Port 50 | 151.4 | 0.7% | 0.2% | 1.7% | -2.1% | -7.7% |
The Liv-ex Fine Wine 1000 comprises seven sub-indices, including the Bordeaux 500, the Burgundy 150, and the Champagne 50. The Bordeaux 500, which is described by Liv-ex as the most comprehensive index for Bordeaux wines, is down 18.3% over five years. The Bordeaux Legends 40, tracking 40 Bordeaux wines from exceptional older vintages, has seen a 12.1% decline over five years. In contrast, the Champagne 50 has gained 8.7% over five years, and the Italy 100 is up 4.6% over the same period. The Burgundy 150 also shows a 3.1% gain over five years. These varied performances underscore the importance of understanding specific regional and category trends when assessing your holdings. You can track these movements and more with our monthly market index readings.
How does fine wine price relate to enjoyment?
Price does not necessarily correlate with greater enjoyment of a wine's intrinsic qualities for all drinkers. A study published in the Journal of Wine Economics in Spring 2008, based on over 6,000 blind tastings, found that individuals unaware of the price do not, on average, derive more enjoyment from more expensive wine. For non-experts, the study indicated they enjoy more expensive wines slightly less. Specifically, if one wine costs ten times more than another, non-experts are predicted to assign an overall rating that is four points lower on a 100-point scale to the more expensive wine.
For participants with wine training, such as a sommelier course, the relationship between price and overall rating was non-negative, or positive, according to the Journal of Wine Economics study. Experts were predicted to assign an overall rating that is seven points higher to a wine costing ten times more, on a 100-point scale. The study also noted that experts generally assigned lower overall ratings than non-experts. The point at which experts and non-experts were predicted to assign the same rating was a price of $25.70. Below this price, experts were predicted to assign lower ratings than non-experts, and above it, vice versa. These findings suggest that your personal enjoyment of a wine may not align with its market price, especially if you are not a trained expert. This insight can help you decide whether to drink now or hold, based on your own palate rather than perceived value.
What are the tax implications of holding fine wine?
The tax implications of holding fine wine depend on its classification as a wasting asset. HMRC states that disposals of chattels, which are tangible moveable property, are exempt for Capital Gains Tax purposes if they are wasting assets. A wasting asset is defined by HMRC as an asset that naturally has a predictable life not exceeding 50 years. The Capital Gains Manual notes that common examples of wasting assets involve plant or machinery. While the manual does not explicitly classify wine, if a particular wine has a predictable life not exceeding 50 years, it may be considered a wasting asset, potentially exempting it from Capital Gains Tax upon disposal. It is important to consider the projected lifespan of your wines when planning your fine wine investment strategy and potential future sales.
What are the unique characteristics of fortified wines for long-term holding?
Fortified wines, such as Port, Madeira, and Sherry, offer distinct advantages for long-term holding due to their production methods and inherent stability. Fortified wine is made by adding a distilled spirit, typically brandy, to wine. This process can preserve the wine, as ethanol acts as a natural antiseptic, and can also add distinct flavors.
Port Wine: Produced in Portugal's Douro Valley, Port is typically a sweet red wine, though dry, semi-dry, white, and rosé styles also exist. Vintage Ports account for about two percent of overall Port production and age for a maximum of two and a half years in barrels or stainless steel before bottling. They are designed to age for another 10 to 40 or more years in the bottle, retaining their dark ruby color and fresh fruit flavors. Particularly fine Vintage Ports can continue to gain complexity for many decades after bottling, with 19th-century bottles known to be in perfect condition for consumption. The oldest known Vintage Port still available from a shipper as of 2018 is an 1815 Ferreira. Once opened, old Vintage Ports are best consumed within several days, while young Ruby Ports, including Vintage Ports and Late Bottled Vintage (LBV) Ports, can be kept open for several weeks or months when very young. Tawny Ports, which undergo oxidative aging in wooden barrels, may keep for several months once opened.
Madeira Wine: From the Portuguese island of Madeira, this fortified wine is noted for its unique winemaking process that involves oxidizing the wine through heat and aging. This process makes Madeira exceptionally durable after opening, with good examples remaining sound for months or longer. Properly sealed in bottles, Madeira is one of the longest-lasting wines, with some known to survive over 200 years in excellent condition. Vintages dating back to 1780 are known to exist, and the oldest bottle to come onto the market is a 1715 Terrantez. The investment market for Madeira is driven by its exceptional longevity and stability, with rare vintage bottles commanding significant premiums at major auction houses such as Christie's and Sotheby's. For example, a bottle of 1715 JCA & C Terrantez sold for $39,000 at Christie's in 2016.
Sherry: This fortified wine from Spain is produced from white grapes around Jerez de la Frontera. Most sherries are initially dry because fortification occurs after fermentation is complete. Sherry is aged and blended using a solera system, so bottles typically do not carry a specific vintage year and can contain a small proportion of very old wine. Sherry is aged in the solera for a minimum of two years. Once bottled, sherry generally does not benefit from further aging and can be consumed immediately. Oxidatively aged sherries, such as Amontillados and Olorosos, can be stored for years without noticeable loss in flavor. Sweeter versions, like Pedro Ximénez (PX) and cream sherries, can last several weeks or even months after opening, as their sugar content acts as a preservative. For those considering how to store wine for the long term, these fortified styles offer remarkable resilience.
Understanding the market dynamics and specific characteristics of your fine wine holdings is key to making informed decisions. To gain deeper insights into market trends and manage your collection effectively, subscribe to our monthly market report email. It provides the intelligence you need to navigate the fine wine market with confidence.