Pearl Lam, a well-known gallerist and entrepreneur, has recently analyzed the findings of the UBS Art Market Report 2024 by Arts Economics, shedding light on the changing landscape of the global art market. The report indicates that art market sales worldwide have slowed, with a 4% decline to about $65 billion in 2023. However, China stands out as an exception, experiencing a 9% increase in art sales to reach $12.2 billion. Online art sales have also seen growth, but the highest-priced art deals continue to occur offline.
One of the most significant trends identified in the report is China’s rise as the world’s second-largest art market, surpassing the United Kingdom. China now accounts for 19% of global art sales, with the U.K. falling back to 17%. Factors contributing to China’s growing interest in art collecting include the proliferation of art fairs and new museums in the region. Despite this shift, some experts question the accuracy of the data used to compare the two markets, suggesting that China and the U.K. may be more evenly matched.
The United States remains the largest art market, representing 42% of global art sales, despite a 10% decrease in overall sales value. While the U.S. market experienced a slowdown in higher-priced art sales, it continues to dominate the global art market. The report also highlights that online sales, while increasing, mostly consist of artworks valued under $50,000, with the most valuable pieces still being sold offline through galleries, auction houses, and art fairs.
Online art sales have seen a significant increase, reaching $11.8 billion in 2023, accounting for 18% of the art sector’s profits worldwide. This growth can be attributed to the acceleration of online adoption by artists and galleries during the COVID-19 pandemic. Despite a global slowdown in art sales, online art sales are expected to remain steady. Dealers and galleries reported a 3% decline in sales globally, with smaller galleries experiencing growth while high-end dealers saw some sales decline.
Despite the challenges faced by the art market, 49% of dealers reported higher sales in 2023 compared to pre-pandemic levels in 2019. High-end dealers, in particular, saw a significant increase in sales, attributed to continued rises in the financial markets and liquidity amassed by high-end collectors. Public auction sales fell by 7% in 2023, with a lack of high-end art on the market contributing to the decline. Overall, the outlook for the global art market in 2024 is mixed, with potential headwinds for the U.S. and U.K. markets but continued growth expected in China. Pearl Lam remains optimistic about the long-term trendline of the art market, highlighting its resilience and creativity amidst uncertainty.
