Art (world market)

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2023: World art sales cut by 4% to $65bn

In 2023, a decline was recorded in the world art market - total sales decreased by 4%, being at the level of $65 billion. This slowdown followed two years of strong growth, and the main factors that triggered the negative dynamics were high interest rates, inflation and political instability. Market trends are addressed in a review released in late October 2024 by Swiss bank UBS and Art Basel.

The study said that the largest decline was recorded at auctions, where sales decreased on an annualized basis by 7%. Dealers have a 3% decline. This situation is due to a weakening demand for expensive works of art and a reduction in the average cost of purchases.

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The American art sector, which reached a historic peak of $30.2 billion in 2022, decreased by about 10% in 2023 - to $27.2 billion. Despite this decline, the United States is a key sales center with a 42% share of the global market. China rose to second place in the ranking, showing a result of 19%: here sales rose by 9% - to $12.2 billion, which was facilitated by the easing of restrictions associated with the COVID-19 pandemic. At the same time, Britain dropped over the year from second to third position, taking 17% of the world industry: sales in 2023 in this country decreased by 8%, amounting to about $10.9 billion.

The report also notes that online sales of works of art in 2023 increased by 7%, demonstrating revenue at $11.8 billion against the peak value of $13.3 billion noted in 2021. Internet trading accounted for 18% of the total market turnover, and the main volume of receipts was provided by transactions worth less than $50 thousand.^[1]

2022: Global Art Market Up 3%

In 2022, the global art market reached $67.8 billion, which is 3% more than in the previous year. This is stated in the report of Art Basel and UBS Global, published on April 4, 2023.

It is reported that in terms of total expenses, the industry exceeded the indicators observed before the start of the COVID-19 pandemic: it is estimated that in 2019 the costs amounted to approximately $64.4 billion. At the same time, the maximum value was recorded in 2014 - approximately $68.2 billion.

The volume of the global art market reached $67.8 billion

Sales in the dealer sector in 2022 reached $37.2 billion, an increase of 7% compared to 2021. Sales at art fairs rose on an annualized basis from 27% of the total market to 35% (in 2019, the value was 42%). The total revenue of auction houses, including public and private trading, is estimated to have decreased by 2% - to $30.6 billion from $31.2 billion in 2021. It is also said that online sales after unprecedented growth due to the COVID-19 pandemic have declined: in this segment, costs in 2022 decreased to $11 billion, which is 17% less than in 2021, when they reached their peak of $13.3 billion.

Although we continued to face economic challenges in 2022 due to high inflation, rising interest rates and uncertainties, collectors have shown a steady desire for art, and global sales have risen by 3%. The global art market has proven resilient, "said Paul Donovan, chief economist at UBS Global Wealth Management

The United States retained a leading position in the world art market: at the end of 2022, the share in monetary terms increased from 43% to 45%. Britain took second place with 18% of sales, and China closes the top three with a result of about 17%.^[2]

2020: Art sales drop 22%, to $50.1 billion

In mid-March 2021, the Art Basel and UBS Global Art Market Report appeared, according to which global art sales in 2020 fell 22% to $50.1 billion. However, the flexibility of market players contributed to the development of innovative buying and selling approaches, which allowed to limit the scale of the decline and could become the basis for the transformation of the market in future years.

Despite a significant decline in sales, it turned out to be not as severe as the market fell by 36% in 2009 at the beginning of the global financial crisis. One of the factors in the relative stability of the market was the fact that many wealthy buyers did not feel significant economic damage during the pandemic. According to the report, the wealth of billionaires actually grew by 32% (as opposed to a 45% drop in 2009). This played into the hands of the art market, since such people had time and money to buy.

Global art sales fall 22% in 2020

The art market in 2020 has experienced a stage of digitalization. Online art sales doubled in 2020, reaching a record $12.4 billion, with the sector's market share increasing to 25% from 9% a year earlier. 49% of wealthy collectors made purchases through online auctions, 47% through online gallery halls (Online viewing rooms, OVR), and 45% at online exhibitions. The vast majority of gallery owners and directors said they are likely to continue using online strategies developed during the pandemic, even after traditional events return.

Meanwhile, dealers note that the bulk of online sales was provided by existing customers. New buyers accounted for 32% of online gallery sales, up from 57% in 2019, according to the report. The report also states that 54% of galleries lost profit in 2020, while 28% unexpectedly managed to increase it, and 18% reported a stable indicator. The increase in profit was mainly due to a significant reduction in expenses, including fees for exhibition stands and staff costs.^[3]

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