Significant decline of 12% in global art sales reported in 2024, according to industry findings
Art Market Plummets: A Second Straight Year of Decline
Hey there, art enthusiasts! Buckle up, because we're diving into the latest scoop on the global art market. Prepare for some shocking facts and insights from Art Basel and UBS's annual Art Market Report.
Market in the Red: A $7 Billion Slide
Brace yourselves, art lovers! The global art and antiques market took a nose dive in 2024, losing a whopping 12% and settling at an estimated $57.5 billion, according to the Art Market Report.
Clare McAndrew, founder of Arts Economics and the report's author, wasn't mincing words when she told The Art Newspaper, "It's been a very challenging year overall."
The Year of the Great Fall
The year marked the third-largest contraction of the global art market in the past 15 years, with only the 2009 recession (-36%) and the 2020 Covid-19 pandemic (-22%) causing more substantial declines. The market took a hit equally severe to the 12% drop recorded in 2012.
A Painting Picasso: Sales Slide Across the Globe
Sales slid not just in one part of the world, but almost everywhere you'd expect to find art lovers. China bore the brunt with a decline of 33%. Sales took a nosedive in the U.S., the world's largest art market, by 9%, and countries like France and Italy saw sales dip by 10%. South Korea wasn't immune, with a 15% slump in sales. The UK, despite Brexit-related challenges, fared better, contracting by a relatively moderate 5%.
Art Market: Navigating Choppy Waters
The dynamics of last year's contraction resemble those of 2023, when total sales fell by 4%. This has been primarily due to ongoing geopolitical tensions, economic pressures, and shifting buying behavior.
From Boom to Bust: The Contemporary Sector Takes a Hit
The contemporary sector, once the star of the art world, has taken a significant blow. Auction sales in this sector dropped a staggering 36% to $1.4 billion—their lowest level since 2018. Amid a return to more well-known names, McAndrew noted a growing aversion to risk among buyers.
"Several dealers spoke of a lack of curiosity among clients," she said. "They used to fight with collectors for works at artists' studios. Now everyone wants to buy someone they've already heard of. The appetite for the unknown isn't there anymore." The report states that galleries are increasingly relying on their top three best-selling artists due to "more selective buying by collectors."
Volume Up, Value Down: A Sign of the Times
While the sale value is down, trading volume grew by 3%, reflecting greater activity at the lower-priced segment of works priced under $50,000.
A Balanced Art Landscape is on the Horizon
Auction houses last year sold 20% less by value but 4% less by volume, according to the report. A similar trend was seen in the gallery sector, hinting at the emergence of a more balanced and democratic art ecosystem.
Small exhibitions, under $250,000, saw the greatest increase in sales, with a 17% boost, while larger establishments with a turnover exceeding $10 million experienced a 9% decline. However, these gains are overshadowed by plummeting profitability across the market, as prices for virtually all aspects, from shipping to rent, have increased.
Women Artists Leap Forward
Amid the gloom, there's a silver lining: sales of work by women artists in the primary market have increased by 3% year-on-year.
The Art Market: Moving Sideways Since 2014
Despite a significant increase in wealth among the collecting class, especially billionaires, the art market has struggled to reach its 2014 peak.
The Future of Art: A Cautious Outlook
Reflecting on the future, one dealer was quoted in the report, saying, "Existing young collectors are no longer buying paintings. With the bursting of the contemporary art bubble, there is a high reliance on older collectors who prefer Modern and Post-War art... (but) many of these collectors are in their 60s and 70s, so I am worried about what the art scene will look like 10 years from now."
Stay tuned for more updates from the ever-evolving world of art!
Read more Art Newspaper stories here.
Insights:- Economic uncertainty and geopolitical tensions have resulted in cautious buying, especially among high-end markets.- Buyers are shifting toward established artists, reducing demand for contemporary art.- The high-end market, especially auction sales, experienced significant declines, dropping by 45% in fine art works selling at auction for over $10 million.- The growth in trading volume, despite a decline in value, may signal a broader and more diverse collector base.- Sales of works by women artists are on the rise, increasing by 3% year-on-year.
- Despite the economic downturn and recession, sales of artworks by women artists have shown a 3% increase, suggesting a growing interest and profitability in arts from diverse creators.
- The art market, once booming, has shifted towards a more balanced and democratic landscape, as smaller exhibitions and galleries have witnessed a 17% boost in sales, while larger, high-end establishments have experienced a 9% decline.
- The contemporary art sector, once a star of the art world, has taken a substantial blow, with auction sales in this sector falling by 36%, hinting at a shift in buying patterns and a growing aversion to risk among collectors in the current recession.
