Pearl Lam, a prominent figure in the art world, has shared insights on the recent findings of the UBS Art Market Report 2024 by Arts Economics. The report revealed that global art sales have slowed, with the exception of China, where sales have increased by 9% to $12.2 billion. Online sales have also seen a rise worldwide, but high-priced art deals still predominantly occur offline.
The report identified several key trends in the art market in 2023. Sales globally experienced a 4% decline to approximately $65 billion due to factors such as rising inflation and interest rates. On the other hand, China has emerged as a dominant force, surpassing the United Kingdom as the world’s second-largest art market, accounting for 19% of global art sales.
Despite the slowdown in sales value, the United States remains the largest art market, making up 42% of global art sales. However, the report noted a reduction in higher-priced artworks sold at the top end of the market. While online sales have increased, the most valuable artworks are still primarily found in galleries, auction houses, and art fairs.
Even though online sales are growing, the online art market has yet to significantly impact the high-end art market, with 95% of online sales being for artworks valued under $50,000. Dealers reported a slowdown in sales, with smaller galleries and dealers experiencing growth while high-end dealers saw a decline in sales.
Despite the challenges faced by the art market, 49% of dealers reported higher sales in 2023 compared to 2019. However, public auction sales fell by 7% in 2023, attributed to a lack of high-end art coming into the market and lower interest in art as an alternative asset class amid investment opportunities offered by high interest rates.
Looking ahead to 2024, the art market may face further challenges due to political and economic volatility. While the large U.S. and British markets may encounter headwinds, China is expected to continue delivering strong growth in art sales. Despite these challenges, there is optimism for the future of the art market as a place of creativity and reinvention, with a positive long-term trendline. Pearl Lam’s insights provide valuable perspective on the current state and future outlook of the global art market.
