As Global Art Market Recovers, China Falls Behind
Last year, global art sales eclipsed those made in 2019 for the first time since the pandemic. The recovery has been uneven, though, with China falling to the third largest art market in the world.
Art Basel Hong Kong 2023. Courtesy Art Basel.
The global art market grew 3% to US $67.8 billion in 2022, according to the latest report from Art Basel and UBS, titled The Art Market 2023.
The U.S. extended its dominance as the world's largest art market growing from 43% to 45% of global sales. Sales in the U.S. grew 8% year-on-year to $30.2 billion driven primarily by the high end of the auction sector.
China—which dealt with widespread Covid-19 infections after finally relaxing tough restrictions last year—fell from 20% to 17%, falling behind the U.K., which saw 18% of sales by value.
Art sales in China declined by 14% to $11.2 billion. With the exception of 2020, that's their lowest level since 2009.
The situation in China is beginning to look up, however.
'By late 2022, there was a sense of optimism among dealers, particularly in Mainland China and Hong Kong,' said Christl Novakovic, Chair of The UBS Art Board.
Galleries were also enthusiastic about this year's Art Basel Hong Kong, which took place in March.
'Hong Kong is well and truly back,' commented Wendy Xu, White Cube's General Manager in Asia, after selling around 30 works totalling over £5 million (US $6.1 million).
Globally, the art market's growth last year was driven by a 7% increase in dealer sales. In keeping with recent trends, the biggest galleries benefited most.
'While the larger dealer segments grew, sales for the smallest dealers, and many parts of the auction market contracted,' noted Noah Horowitz, CEO of Art Basel.
The public auction sector actually fell 1% to $26.8 billion. Adding to concerns that the art market is too top heavy, the only segment to increase in value was works priced over $10 million.
The report does not include NFTs sold outside of galleries, dealers, or auction houses in the total value of the art market, but it did note that the popularity of digital, film, and video art increased from 1% of dealer sales in 2021 to 5% last year.
'NFT-backed digital art accounted for much of that change, indicating how the market continues to evolve and adapt to the times,' Horowitz said.
A separate analysis of art NFTs sales noted that they'd fallen by 49% from close to $2.9 billion in 2021 to just under $1.5 billion last year.
Zooming out to account for the rapid rise of NFTs, however, last year's sales were still more than 70 times those in 2020. —[O]
