The global art market has faced a year of mixed fortunes, with fluctuating trends influenced by economic conditions and regional shifts.
The UBS Art Market Report 2024, compiled by Arts Economics, provides a comprehensive look at how these dynamics are affecting the art world.
Below, we explore the most significant trends identified in the report, offering insight into the current state of the art market as we move into 2024.
- Sales in the Global Art Market Slowed in 2023
The art market experienced a 4% decline in global sales in 2023, dropping to approximately $65 billion. While the slowdown can be attributed to rising inflation and interest rates, the market still remains higher than pre-pandemic levels. The high interest rates and strong performance in other asset classes have made investors more cautious about allocating large portions of their portfolios to art. - China’s Market Growth
One of the most significant changes highlighted in the report is China’s rise as a dominant force in the global art market. China surpassed the United Kingdom to become the second-largest market, accounting for 19% of global art sales. This shift reflects the growing enthusiasm for art collecting in China, driven by an increase in art fairs and new cultural institutions, such as the Centre Pompidou Museum in Shanghai. - The U.S. Remains the Largest Market
Despite a 10% decrease in sales, the U.S. continues to lead the global art market, representing 42% of total sales. This drop is largely attributed to a reduction in high-priced artworks sold at top-tier auctions. However, analysts suggest that the U.S. market may account for closer to 50% of global sales when factoring in American buyers purchasing art in international markets such as the U.K. and Hong Kong. - Offline Sales Still Dominate the High-End Market
While online sales in the art world are on the rise, the highest-priced artworks continue to sell offline. According to the report, 95% of online art sales were for works valued under $50,000. Art fairs, galleries, and auction houses remain the main venues for top-tier artworks, with 30% of dealers citing art fairs as their primary source of new buyers. - The Rise of Online Art Sales
Despite the slowdown in the global art market, online sales have increased by 7%, reaching $11.8 billion in 2023. This marks a significant growth from 2019, with online sales now accounting for 18% of the art sector’s global profits. The pandemic accelerated the digital shift, and while the market for online art may stabilize, it is expected to maintain its current share of the art sales pie. - Dealer Sales Slowed
Sales by galleries and art dealers saw a global decline of 3% in 2023 after two years of consistent growth. Smaller galleries, however, experienced growth, particularly those serving the mid-market, while high-end dealers faced a slowdown. This suggests a shift in the market dynamics, with a growing divide between top-tier dealers and smaller, emerging galleries. - Dealers Report Higher Profits
Despite the slowdown in high-end sales, nearly half of art dealers reported higher sales in 2023 compared to 2019 levels. This was particularly true for high-end dealers, who saw the largest increase in sales, likely driven by continued wealth accumulation among top-tier collectors. The sustained strength of financial markets has provided liquidity for high-net-worth individuals to continue purchasing art. - Public Auction Sales Declined
After a record-breaking 2022, public auction sales fell by 7% in 2023. This decline is attributed to a lack of high-profile artworks reaching the market and reduced interest in art as an alternative investment class, particularly in the face of higher interest rates offering more immediate liquidity.
Outlook for the Global Art Market in 2025
As the world navigates political and economic uncertainties, the art market’s future remains a tale of two halves.
While established markets in the U.S. and U.K. may face continued challenges, China’s art market is poised for further growth.
Despite short-term fluctuations, the long-term outlook for the global art market remains positive, driven by continued creativity, innovation, and evolving trends in collecting and investment.
