Major fine wine market trend

As all major areas in today’s world, even the most traditional businesses such as the wine market have started to digitize more and more of their processes. The digitalisation has taken place in the highest quality fine wines. 

Standardized tracking system

Liv-ex - the largest B2B wine trade marketplace in the world - has created the Lwin (Liv-ex wine identification number) system, which helps create a standardized approach to wine industries’ messy databases and systems. This is used by Winesearcher, wine shops, warehouses, and other players already. 

Lwin represents a universal product code, which is different for each unique wine and vintage. This can even be embedded in a R code. 

Wine market analysis

With the product code problem solved, cloud technology can be used more efficiently so that wine product data can be stored in the cloud and accessed using API technology. 

Now the wine market data can be collected and analyzed, which makes it easier to understand current market situations, most popular wines and bigger trends. 

A good example are Liv-ex indexes, which have become the benchmark for the global fine wine market. These indices track the prices of the world’s most traded fine wines. There are general and regional indices. Liv-ex continuously analyses the wines that make it to the indices and also how their price changes. 

Wine NFTs

People say that wine is art. Now wine can also be digital art - an NFT. 

When you buy the NFT, you are buying the digital token (NFT) as well as an actual bottle or a barrel of wine. The wine NFT can be traded on digital NFT marketplaces. All the necessary information about grapes, planting and bottling can be included in the NFT code. Some wine NFTs also include one of a kind digital artworks or invites to online tasting events. 

NFTs play a major role in ensuring the authenticity of fine wines. Due to the production, storage and logistics information contained in the NFT code, it’s even harder to trade fraudulent wines. So any fine wine owner can be sure that they have an original which is worth the price. 

Conclusion

Digital revolution has reached the winemaking industry. With the release of wine NFT-s it is expected to make wine investing more secure for the investor as well as add additional value to the bottle itself.