The Liv-ex Bid-to-Offer ratio has recovered from a low point set in March when tariff uncertainty compounded with Covid-19 concerns hit confidence and sent mainstream markets plummeting.
The largest piece of the Bid pie, Bordeaux, has relinquished much of its market share to other regions during the year, but still dominates Bid exposure (55.7%). The region also has one of the closest ratios to parity, often an indicator of positive mid-term price performance. Additional regions with healthy Bid-to-Offer ratios include this year’s rising stars of Champagne, Piedmont, Tuscany and the Rhone.
Seen below, red wine from Bordeaux and Burgundy make up two thirds of all Bid exposure, followed by Italy (10.4%) and Champagne (9.3%).
The United States (2.3%) and Australia (1.5%) combine for a significant share of Bids and are both on course to set new records for trade share this year.
The Others (1.2%) category is small, but growing, and includes Bids for wines from Germany, Loire, Alsace, Portugal, Japan, and New Zealand to name a few.
As the market continues to expand, as shown by our most recent blog on wines traded, small regions are continuing to see trade but even with a declining trade share, Bordeaux continues to have the most eyes on it. Little surprise there.
There are currently 6000 LIVE Bids looking for the right Offer– attached are a selection of relevant Bids (5% below market or above).