Introduced yesterday (Oct. 24) at Spring Studios in New York, the newest Artwork Basel and UBS Survey of World Amassing provided key insights into collectors’ actions and attitudes at a time when the artwork market is present process main shifts in transaction channels, demographics and shopping for habits. The dialogue, moderated by the Wall Road Journal’s Kelly Crow, featured Clare Mcandrew, the report’s writer and founding father of Arts Economics; Noah Horowitz, CEO of Artwork Basel; and Paul Donovan, chief economist at UBS World Wealth Administration. Collectively, they unpacked new analyses of the habits of high-net-worth people (HNWIs) throughout fourteen world markets in 2023 and the primary half of 2024. The UBS survey, the most important of its type to this point, drew on responses from 3,660 extremely engaged and rich artwork collectors—people with a web value of over $1 million, excluding actual property and enterprise property.
The findings revealed sturdy and regular exercise out there however highlighted a notable decline in common spending, together with a narrowing of the high-end sector. Nonetheless, this development hinted at ongoing sustainability in different segments. Regardless of the 2023 slowdown, which noticed the artwork market fall by 4 p.c to $65 billion, world imports of artwork and antiques grew for the third consecutive yr, with values rising by 6 p.c to $33 billion. As McAndrew famous, “The HNWIs we surveyed had been transacting via a extra various vary of channels and value factors in 2023 and 2024, participating with extra galleries than in earlier years, together with extra new galleries. These adjustments will seemingly contribute to the continued shift in focus away from the slender high-end gross sales which have dominated in earlier years, doubtlessly increasing the market’s base and inspiring development in additional reasonably priced artwork segments, which may present better stability sooner or later.”
How HNWIs are spending on artwork
Whereas the world’s billionaires skilled a 5-7 p.c lower in development in comparison with the placing 64 p.c surge from March 2020 to March 2021, the distribution of their wealth shifted, influencing shopping for and funding decisions. In accordance with the survey, HNWIs noticed a 32 p.c drop in common spending, largely resulting from decreased exercise on the prime of the market. Spending dipped barely from $50,165 in 2022 to $50,000 in 2023, which helped stabilize the center market, with median spending ranges reaching $25,555 in early 2024.
Horowitz mentioned that, “regardless of this, median spending in 2023 and thru the primary half of 2024 remained stable, with a rising deal with new and rising artists, and art-related occasion attendance surpassing pre-pandemic ranges. As a worldwide enterprise, we acknowledge the difficult market context and stay dedicated to fostering new and revolutionary methods for the following era of collectors to attach with our galleries and their artists—each at our exhibits and past.”
Portray continued to dominate as a most popular medium, with three-quarters of HNWIs buying a portray in each 2023 and early 2024. Works on paper additionally gained traction, with half of respondents actively investing on this class, whereas prints noticed a notable 35 p.c improve. In the meantime, sculptures and extra complicated media noticed decreased spending, largely resulting from market exercise concentrating at lower cost factors.
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As the highest finish of the market contracts, HNWIs are more and more drawn to rising artists. Whole expenditures on this class grew by 8 p.c in 2023 and 2024, with 52 p.c of spending directed in direction of early-career artists. Curiosity in residing artists additionally rose, with 17 p.c of HNWIs investing of their works, in comparison with a 9 p.c decline in different classes. Mid-career artists accounted for 21 p.c of expenditures, whereas established and top-tier works made up 26 p.c.
Reflecting broader institutional traits, gender parity in non-public collections improved. The share of works by feminine artists in HNWI collections rose to 44 p.c in 2024, the very best stage in seven years, up from 33 p.c in 2018.
On the subject of motivations for amassing, private enjoyment remained the highest driver, cited by 40 p.c of respondents. Nonetheless, monetary motivations ranked larger in Singapore, and in Brazil, they had been nearly on par with private causes. Social motivations, reminiscent of constructing connections with like-minded people, accounted for twenty-four p.c of responses.
HNWI shopping for channels
Through the dialogue, McAndrew emphasised that collectors are attending extra artwork occasions than ever earlier than. Throughout all fourteen markets, HNWIs attended a mean of forty-nine art-related occasions in 2023, with plans to attend practically as many in 2024. However on the subject of precise transactions, many collectors are more and more comfy shopping for on-line, with 29 p.c making purchases digitally and 23 p.c shopping for via Instagram. The second mostly used and second-largest spending route was vendor web sites, which emerged as the popular technique amongst HNWIs in 2024. Nonetheless, 20 p.c of collectors nonetheless want to purchase in individual at occasions or gallery exhibitions.
Because the artwork market continues to undertake a multichannel strategy, accelerated by the pandemic, 60 p.c of HNWI spending in 2024 was channeled via sellers. This spending was cut up between gallery visits (28 p.c), on-line transactions (25 p.c), artwork festivals (18 p.c), electronic mail or telephone gross sales (18 p.c) and Instagram gross sales (11 p.c). The preferred avenue for buying artwork stays galleries or artwork sellers, with 95 p.c of HNWIs utilizing this technique, whereas auctions held a secondary place, with 67 p.c making purchases at public sale in 2024.
The survey additionally instructed that HNWIs are broadening their horizons to discover new galleries and channels for his or her acquisitions. Eighty-eight p.c of respondents bought from a minimum of one new vendor within the final yr, shopping for from a mean of seventeen totally different galleries in 2024. Regardless of elevated journey to festivals and biennales, collectors nonetheless exhibit a “dwelling” bias, buying primarily from native galleries. Moreover, the survey exhibits that whereas HNWIs attended each native and worldwide occasions, 54 p.c leaned towards native occasions.
Rich collectors are more and more centered on legacy and property planning
One intriguing side of the survey is how the continued generational switch of wealth amongst HNWIs, significantly in North America and Europe the place we’re witnessing one of many largest transfers in historical past, is impacting artwork collections. In accordance with Donovan, “over the following 20 years or so, $84 trillion will change arms. That’s roughly 1.7 instances the treasury bond market. So there’s some huge cash shifting round.” He additionally famous in an announcement that “as the good wealth switch beneficial properties momentum, we’ll see companions, spouses and kids tackle collections and develop into collectors themselves. These new collectors will convey recent views, typically adopting new methods which can be extra purpose-led.”
The survey tasks that the wealthiest phase of HNWIs is more likely to switch over $6 trillion in wealth and property to heirs and charities over the following 20 to 30 years. This shift inevitably entails cautious planning for pleasure property, together with artwork collections, a lot of which have already been handed down via generations. In accordance with the findings, 91 p.c of those collectors inherited or had been gifted works via wills or different bequests, and 72 p.c have stored a minimum of a few of these items. Moreover, 65 p.c of respondents have plans in place to switch paintings to a accomplice or partner, whereas 43 p.c have an analogous plan for youngsters. However because the panel highlighted, sensible causes typically drive gross sales—chief amongst them are the excessive inheritance taxes that collectors search to keep away from or use proceeds to settle (47 p.c), in addition to the necessity for bodily area to accommodate artworks (55 p.c).
Donovan highlighted that this wealth switch can also be enabling extra girls to take management of great monetary property: “We do see girls taking extra management of wealth, and there’s typically a stereotype that girls are danger averse. That is completely not the case. Nonetheless, they’re keen to do their analysis when making funding choices and broader choices about wealth administration. Typically, we’re seeing folks being extra thoughtful in a few of their artwork purchases.”
This shift additionally applies to Gen Xers and Millennials, who’re set to inherit this wealth. In accordance with the report, their attitudes towards spending are altering. Whereas youthful consumers noticed notable will increase in common spending in 2022, 2023 marked a 50 p.c drop in millennial HNWI spending, all the way down to a mean of $395,000. Nonetheless, median spending throughout all generations remained constant, starting from slightly below $47,000 for Millennials to $52,000 for Boomers in 2023. Gen X had the very best common spending of $578,000 (over a 3rd larger than Millennials and double that of Boomers and Gen Z), displaying a modest year-on-year development of three p.c. A looming query stays: as soon as this wealth is transferred, will they maintain the inherited artwork or promote it?
“This yr’s Artwork Basel and UBS Survey of World Amassing exhibits that the drop in common spending amongst millennial HNWIs was pushed by decreased exercise from high-end consumers, reflecting a broader market shift,” Horowitz mentioned in an announcement. “Regardless of this, median spending in 2023 and thru the primary half of 2024 remained stable, with a rising deal with new and rising artists, and art-related occasion attendance surpassing pre-pandemic ranges. As a worldwide enterprise, we acknowledge the difficult market context and stay dedicated to fostering new and revolutionary methods for the following era of collectors to attach with our galleries and their artists—each at our exhibits and past.”
General, the 2024 collector survey gives a ray of hope: the share of HNWIs feeling optimistic in regards to the world artwork market’s efficiency within the subsequent six months had risen to 77 p.c by the tip of 2023, with 43 p.c planning to purchase within the subsequent twelve months. Probably the most proactive consumers are these with monetary motivations; 70 p.c are actively planning purchases. The report moreover spoke of “optimistic financial forecasts for 2025” and “continued artwork enthusiasm pushed by each seasoned collectors and new entrants,” supported by early indicators reminiscent of sustained spending in mainland China, rising curiosity in rising artists and constant attendance at galleries and artwork festivals. Although the market continues to course appropriate after the pandemic-driven euphoria, the survey factors to a stable and resilient base that might maintain the market within the yr forward.
