Global sales of art and antiques have fallen for a second consecutive year, declining by 12% in 2024 to an estimated $57.5 billion, according to the latest annual Art Market Report by Art Basel and UBS. “It’s been a very challenging year overall,” Clare McAndrew, the founder of the research firm Arts Economics, who authored the report, told The Art Newspaper. The year marked the third-largest contraction of the global art market in the past 15 years, the report found, eclipsed only by the years of the 2009 recession (-36%), and the 2020 Covid-19 pandemic (-22%), and on par with the 12% drop recorded in 2012. Sales fell in almost every region, with China most affected, seeing a decline of 33%. Sales in the US, the world’s largest art market, decreased by 9%, and slid by 10% in both France and Italy, and 15% in South Korea. “Despite Brexit-related challenges,” per the report, the UK contracted by a more moderate 5%, and has retained its position as the second-largest art market. As the report lays out, the dynamics of last year’s contraction broadly mirror those of 2023, when total sales fell by 4% with the highest price points most affected, due to “ongoing geopolitical tensions, economic pressures and shifting buying behavior.” The once-booming contemporary sector was hit hard, with sales at auction dropping by 36% to $1.4 billion, their lowest level since 2018. Amid a return to more tried-and-tested names, McAndrew noted a growing aversion to risk among buyers. “Several dealers spoke of a lack of curiosity among clients,” she said. “They say 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 notes that galleries are more heavily relying on their top three best-selling artists due to “more selective buying by collectors.” However, while sale value is down, trading volume grew by 3%, reflecting greater activity at lower-priced segment of works priced under $50,000. A shift in balance 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, and hinted at the emergence of a more balanced and democratic ecosystem: Dealerships with the smallest turnovers, under $250,000, saw the greatest increase in sales, with a 17% boost, while those with a turnover exceeding $10 million experienced a 9% decline. However, these small gains are undermined by plummeting profitability across most of the art and antiques market, as prices for virtually all aspects of the business, from shipping to rent, have increased. Other positives to take away from the report, McAndrew said, are the increased sales of work by women artists in the primary market, up 3% year-on-year. While the art market experienced regular fluctuations, the report also shows that for the past decade, it has struggled to reach its 2014 peak, despite a significant increase in wealth among the collecting class, especially billionaires. Reflecting on the future of the art market, one dealer is quoted in the report as 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. “On the other hand, we know there is a high proportion of wealthy people who have no experience in purchasing art, and the challenge for dealers is how to reach them, rather than focusing on existing art collectors.” Read more stories from The Art Newspaper here.
Global art sales plummeted by 12% in 2024, says industry report
TruthLens AI Suggested Headline:
"Global Art Market Faces 12% Decline in 2024 Sales"
CNN
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TruthLens AI Summary
The global art and antiques market has experienced a significant downturn, with sales plummeting by 12% in 2024, amounting to an estimated $57.5 billion. This decline marks the second consecutive year of falling sales and represents the third-largest contraction in the market over the past 15 years, surpassed only by the financial crisis in 2009 and the impact of the Covid-19 pandemic in 2020. According to the Art Market Report by Art Basel and UBS, every major region faced a downturn, with China suffering the most severe decline at 33%. Meanwhile, the United States, recognized as the largest art market, saw a decrease of 9%, while France and Italy recorded declines of 10% each. South Korea's market fell by 15%, and the UK, despite challenges related to Brexit, experienced a more modest contraction of 5%, maintaining its status as the second-largest market globally. The report indicates that the factors contributing to this downturn include ongoing geopolitical tensions, economic pressures, and shifting consumer behavior, which have particularly affected high-priced art sales.
The contemporary art sector has been notably hard-hit, with auction sales dropping by 36% to $1.4 billion, the lowest since 2018. Art dealers have reported a growing reluctance among buyers to invest in emerging artists, with a preference for established names dominating the market. Despite the overall decline in sale value, trading volume increased by 3%, indicating heightened activity in the lower-priced art segment. The report highlights a shift toward a more balanced art market, with smaller dealerships seeing a 17% increase in sales, while larger dealers faced declines. Nevertheless, profitability remains a significant concern, as operational costs have risen across the board. The report also notes a positive trend in the sales of works by women artists, which increased by 3% year-on-year. However, industry experts express concern about the long-term future of the art market, particularly as younger collectors show less interest in traditional art forms, leading to a reliance on an aging demographic of collectors who favor Modern and Post-War art.
TruthLens AI Analysis
The article highlights a significant decline in global art sales, emphasizing economic challenges and shifting consumer behaviors. It provides insights into the current state of the art market, reflecting broader economic conditions that could resonate beyond the art community.
Market Trends and Consumer Behavior
The report indicates that the global art market has contracted for the second consecutive year, with a notable 12% drop in 2024. This decline is attributed to various factors, including geopolitical tensions and economic pressures. The mention of decreased sales across multiple regions, particularly in China, suggests a global trend that may indicate a broader economic slowdown. Such statistics can influence perceptions of wealth and investment in cultural assets, potentially affecting investor confidence in various markets.
Implications for Stakeholders
The analysis reveals a cautious approach among collectors, with a shift towards established artists rather than emerging talent. This trend may reflect a broader apprehension regarding economic stability. The article suggests that galleries are focusing on their best-selling artists, highlighting a possible consolidation in the art market. This change could have significant implications for new artists and galleries struggling to gain visibility and sales, potentially stifling innovation in the art sector.
Perceptions and Public Sentiment
By presenting these findings, the article may aim to cultivate a perception of instability in the art market, which could provoke concern among investors and collectors. The decline in high-value sales could be seen as a warning sign, affecting the broader economic narrative. The focus on established artists may resonate with audiences who prefer stability over risk, thereby reinforcing conservative investment behaviors.
Potential Economic Impact
This decrease in art sales could have ripple effects in related industries, such as luxury goods and real estate, where art is often viewed as a valuable asset. Investors may reconsider their portfolios, potentially leading to a broader reevaluation of asset classes. The article’s emphasis on the art market's downturn could also influence public policy discussions around support for the arts and economic recovery efforts.
Connections to Broader Issues
The report’s findings may parallel discussions in other sectors regarding consumer confidence and economic resilience. The art market's contraction could serve as a bellwether for other luxury markets, reflecting consumer sentiment and economic conditions.
Manipulative Elements and Reliability
While the article presents factual data, it may carry an undertone of manipulation by framing the narrative around fear of economic instability. This could shape public perception in a way that emphasizes caution and conservatism among potential investors and collectors. The language used, focusing on contractions and declines, might evoke anxiety regarding the future of art investment.
In conclusion, while the report is grounded in statistical evidence, the framing of the narrative may influence public perception and behavior in the art market and beyond. The article serves to inform but also to caution against the risks associated with current economic conditions.