Average Art Spending by HNWIs Fell 32% Last Year

News Global Art Market Shrinks 4%—Art Basel and UBS Report Sam Gaskin

Art Basel and UBS released their Survey of Global Collecting 2024 today. Authored by Dr. Clare McAndrew, the survey canvassed over 3,660 High Net Worth Individuals (HNWIs) in 14 markets around the world.

‘Findings from this survey align with our broader market research, revealing consistent and robust activity levels, but with a noticeable decline in average spending levels by value,’ McAndrew said.

Average spending among those surveyed fell 32% ​to U.S. $363,905 last year, while median spending fell only marginally from $50,165 in 2022 to $50,000.

McAndrew noted that collectors were buying through more diverse channels and price points than in previous years, ‘potentially expanding the market’s base and encouraging growth in more affordable art segments which could provide greater stability in future.’

When I spoke with McAndrew in 2022, she said, ‘the top-heavy nature of the market is a concern because smaller galleries and businesses are not only the important incubators of artists and collectors for the high end, but also where the bulk of businesses and transactions take place.’

The 300 HNWIs surveyed from Mainland China reported a median expenditure of $97,000, more than double any other territory. The report found that wealth grew faster in APAC than any other region, rising nearly 177% since 2008.

Adrian Zuercher, Co-Head Global Asset Allocation, UBS Global Wealth Management, noted that ‘over the next five years, the highest growth in the number of millionaires is expected in key regions across Asia, including Indonesia, Japan, South Korea, and Taiwan.’

‘The strong return to spending after post-lockdown has sustained and it’s clear that HNWIs in APAC play an increasingly important role in shaping the future of the art market,’ he said.

The report found collectors were purchasing more prints and works on paper, and fewer paintings and sculptures, which helps to explain the relative strength at the lower end of the market.

It also noted that the share of purchases of works by female artists reached a seven-year high of 44%.

Looking ahead, 91% of the HNWIs surveyed expressed optimism about the global art market’s performance over the next six months, up from 77% at the end of 2023. —[O]

Main image: Dr Clare McAndrew. Photo: Paul McCarthy.