Is investing in a Wine Cellar business lucrative?
Everyone’s talking about wine investments, but why not wine cellars? & why should you even consider investing in a business that sells wine cellars?
Wine collectors these days are aplenty, the hobby is acquired by many given the hype and the ease of purchasing one. It is an expensive past time, a case of Château Lafite Rothschild 1982 will easily set you back $35,000 or a bottle of Château Léoville Poyferré 1990 for $300. The proud possession of these exquisite wine would definitely include showing them off. This thus makes wine cellars an integral part the home and an essential complement to the wine.
Delving into actual statistics by Zion Market Research, the global wine market was valued at approximately $302.02 billion in 2017 and is expected to generate revenue of around $423.59 billion by the end of 2023, growing at a CAGR of around 5.8% between 2017 and 2023.
In this part of the world, Asia Pacific is expected to witness rapid growth during this forecasted period. This is largely attributed to the increase in the number of companies that produce wine in the region of China, India and Japan. The hike in demand for premium wines and growing westernisation also act as factors that drive the growth of the wine market in this region.
Wine collection in akin to purchasing futures, sitting on the appreciation of the value after getting it from the producers, retailers or auction houses. Many have then jumped on the bandwagon to sell wine, whether to collectors or to everyday drinkers. While you do not need a huge sum of money to kick start a wine collection habit, but you definitely would require a good storage to preserve these wines.
With prices ranging from a minimum of $100 to as much as $156,450 (we are of course looking at the most expensive bottle of wine sold here; Chateau Lafite 1787), doesn’t owning a proper storage system to place these wines a no-brainer?
As competitive as wine collection is, wine cellars comparison is not off the hook. An interesting fact to note is that the wine cellar business might be recession proof. It has been reported that the high-end projects continued its steady streak despite the trough.