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.

There is an increasing percentage of wine collectors and drinks that is keen on build-to-order products and are willing to spend as high as 25% more according to a study by Mashable.com for products built specifically to their needs. Tighter production time and lower costs of customisation as compared to before also bring much more potential to the market.

Bodega’s bespoke wine storage solution with customised frame and rack configuration

“Ultimately, wine is about sharing,” says Antonio Galloni, a renowned wine critic . “There are few things that are more rewarding than opening a good bottle with friends and family.” The easiest way to ensure you have enough wine to do just that: Start a collection.

“Millennials are the fastest-growing group of wine consumers,” says Galloni. “Younger people are increasingly interested in learning and having experiences; they want to try new things. It’s natural that, as they learn more and get deeper into wine, young people start collecting. There are certain wines that have attained a cultlike status over the past years and decades.

Also shared by Galloni, you will need to follow a very specific set of guidelines to maximise value. These include buying only from reputable sources and storing wine in perfect temperature and humidity conditions, buying whole cases that remain unopened, and focusing only on blue-chip wines and vintages.

The ocean is saturated with wine sellers, who specialise in wines. How many wine cellar distributors actually only specialises in wine cellars? A handful. Most companies manufacture other appliances together with wine cellars. For a dedicated wine collector, going to a wine cellar specialist would be an absolute answer.

Just like wines, there are different ranges of wine cellars to suit different needs. For an amateur wine collector, the wine cellar needs to be organised, aesthetically pleasing and have the basic functions in place. For the veteran, the wine cellar would not only be holding a large number of bottles, installed with cutting edge technology, it would also be the talk of the town in terms of its look. Only with a wine cellar specialist, would all of these requirements be met.

At Bodega, we have wine cellars that caters to the taste of every wine collector.

Kickstart your wine collection with Bodega BCD8051B3 Wine Collector