COVID-19: What is Next for the Market for Fine Wines?

COVID-19 has officially been declared a pandemic since March 11, 2020. Its effect during the second quarter of 2020 and its forecasted impact on the economy are dramatic. For some industries, the crisis is likely to become the most severe since the Great Depression. In this article, we investigate the economic impact of COVID-19 on the fine wine market. We propose two approaches to study this phenomenon. First, using economic determinants, we estimate that wine prices could drop by as much as 35%. Second, from a historical perspective, we show that the wine market will need to lower prices to remain resilient and that various sub-markets may differ in their reaction to a future economic downturn.