β¬οΈMarket Dynamics
What drives the wine markets?
The fine wine market is driven by supply and demand.
There are a limited number of βblue chipβ producers across a handful of top wine regions.
Only a finite number of bottles can be produced by each winery every year, the quality of which varies from vintage to vintage.
As the wines improve with age and bottles are consumed or damaged, they become increasingly scarce. At the same time, as global wealth increases, so too does demand for high-end wine.
This combination of ever increasing scarcity and growing demand helps to drive prices higher.
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