As the year-end reviews for 2023 are finalized and refined, Artsper has compiled for you a selection of eight key points to help you better understand the current trends in the global art market.
1. 65 billion : the volume of art transactions in 2023, down slightly.
In 2023, the art market experienced a notable shift as sales declined by 4%, reaching approximately $65 billion, contrasting with a 4% increase in transaction volume to 39.4 million. This dip in sales value was primarily attributed to various economic factors such as elevated interest rates, inflationary pressures, and geopolitical uncertainties. Particularly affected was the high-end segment of the market, where sales dwindled amidst the challenging economic landscape.
However, amidst the backdrop of economic turbulence, the art market demonstrated resilience and adaptability. The increase in transaction volume, albeit at lower price points, suggests a broader participation in the market, potentially indicating a democratization of art consumption. This shift may signify a changing preference among buyers towards more affordable pieces or an inclination towards investment diversification. Additionally, despite the overall decline in sales value, the sustained interest in art as an asset class highlights its enduring appeal as a store of value and potential investment opportunity, even in uncertain times. Overall, while economic and geopolitical challenges persisted, the art market showed signs of evolution and resilience, reflecting shifting consumer preferences and broader market dynamics.
Annual growth in the value of sales in the global art market from 2009 to 2023 ©Art Economics (2024)
2. 2% : the increase in private sales, in contrast to a decline in public auctions.
In 2023, both public auction and dealer sales experienced a decline, though the decrease in auctions was notably more pronounced. This downturn reflected the cautious approach of buyers amidst economic uncertainties. However, amidst this overall decline, there was a notable bright spot: private auction sales saw a modest increase of 2% compared to the previous year. This rise in private auction activity suggests a shifting landscape within the art market, where buyers may be seeking more discreet and controlled environments for their transactions. This trend could be indicative of a growing preference for private sales channels, potentially driven by factors such as privacy concerns or a desire for more personalized experiences in the art acquisition process.
"América", by Miguel Amate
3. 123,000 : the number of transactions carried out in 2023
Activity in the contemporary art market reached unprecedented levels, highlighting its exceptional vitality. This year, the market recorded a record number of auctions, surpassing 123,000, a remarkable figure that reflects activity twice as intense as a decade ago and a hundred times higher than that of the early 2000s. In particular, exchanges were particularly dynamic for works priced at less than $5,000. This price segment, which has become the main driver of the market, saw nearly 99,000 contemporary works exchanged, representing three times the flow of the previous decade. This historic peak for contemporary works sold for less than $5,000 clearly illustrates the ongoing expansion of the art market. The rise in transaction volume, especially in lower-priced segments, underscored enduring demand and a changing dynamic within the art market towards more accessible offerings. At Artsper, some galleries have even specialized in this market and in making art accessible to as many people as possible.
4. 42%: the United States is the clear leader, followed by China
In 2023, the United States maintained its position as the leading global market in the art industry, comprising 42% of total sales by value. Meanwhile, China secured the second spot with 19% of global sales, surpassing the UK, which fell to third place at 17%. Despite its dominance, the US market experienced a significant 10% decline in sales, dropping from $30.2 billion in 2022 to $27.2 billion in 2023. However, it remained a prominent hub for high-value artworks. Conversely, China saw a 9% increase in sales during the same period, driven by robust activity in the early part of the year following COVID-19 restrictions in 2022, although the pace slowed in the latter half of the year.
Share by value, ©Art Economics (2024)
5. 2%: the decline in European sales needs to be qualified after the post-Covid explosion
In 2023, the British art market witnessed an 8% decline in sales, amounting to $10.9 billion. Similarly, the French market experienced a 7% decrease in sales following a remarkable recovery in 2021 and 2022, during which it saw an exceptional growth of 62%. Despite the setback in 2023, the French market's previous resurgence underscores its resilience and potential for future growth, albeit with fluctuations influenced by broader economic conditions and market dynamics.
Overall, sales in the European Union decreased by 2% in 2023, to around $8.6 billion.
6. 18% : the share of online sales in the art market
Online sales continued to grow, reaching approximately $11.8 billion in 2023, representing 18% of the total market. Despite a slight decline in 2022, online sales rebounded in 2023, underscoring their increasing importance in the art sector. Online transactions were primarily conducted through galleries, dealers, and auction houses, providing buyers with a safe and convenient alternative during the pandemic. Impact of online sales on art accessibility: Online sales played a crucial role in maintaining access to art during the pandemic, allowing buyers to continue acquiring artworks despite restrictions. Galleries, dealers, and auction houses adapted their practices to offer virtual exhibitions and online services, thereby facilitating access to a wide range of artworks. This transition to online sales helped maintain the engagement of collectors and art enthusiasts, further reinforcing the growing digitization of the art market.
Online art market sales volume ©Art Economics (2024)
7. $50,000 : threshold below which 95% of online sales are made
Although there were many high-priced transactions in online-only sales, the trend for the most expensive works to be predominantly sold offline remained. Data from the online art auction sector in 2023 showed that, like offline, the vast majority (over 95%) of transactions in online auctions were for prices below $50,000. However, unlike offline sales, which were heavily dominated by values in the $1 million-plus segment, 58% of the value of the online-only fine art auction market in 2023 was sales at prices below $50,000, with over 85% of works sold for less than $250,000.
8. 139 million: new record for Picasso, the sale of the year
One of Pablo Picasso's masterpieces, "Woman with a Watch" was auctioned off on Wednesday, November 8, 2023, by Sotheby's in New York for $139 million, the second-highest price ever achieved for this artist who passed away 50 years ago. In the crowded room at Sotheby's headquarters in Manhattan, it took just a few minutes of phone bidding for the painting to sell amidst applause for exactly $139.36 million, including fees, under the auctioneer's hammer.
Picasso's "Woman with a Watch" to be exhibited at Sotheby's in New York on November 8, 2023. © Benjamin Kellerman, Reuters