Art market down for second year with volumes up on low prices
In Clare McAndrew's study a sector heavily influenced by political uncertainty and protectionism. High price bracket penalised. Better defended are the galleries than the auction houses. Women artists grow
4' min read
4' min read
The slowdown of the art market has been talked about for a couple of years now and the numbers confirm it. The ninth "Art Basel and Ubs Global Art Market Report", signed by Clare McAndrew, shows that in 2024 sales contracted, for the second year in a row, by 12% to $57.5 billion (in 2023 by 4% to $65 billion), affecting auction houses more than galleries, with a decline of 25% and 6% respectively. Nevertheless, the number of transactions rose by 3% to 40.5 million, reflecting some dynamism, especially at the low end of the market. The high end suffered the most, with the number of lots above $10m sold at auction dropping by 39%. This is therefore a development that can even be read as positive, because it indicates a broadening of the market; the number of works sold under $50,000 has increased, reaching new buyers, both at the gallery and at auction. "Continuing to expand the market to new audiences, including through the relatively unfettered exchange of artworks across borders, will remain essential for growth in the long term," said McAndrew, and here the reference is certainly to Trump and his tariff policy.
A global decline
.The US retained its leading position in the global market, with 43% of sales, although the value dropped by 9% to USD 24.8 billion. Great Britain, on the other hand, regained the second position it had previously lost, now undermining China and reaching 18% market share, although it dropped 5% year-on-year to $10.4 billion. China, which had grown by 9% in 2023, lost 31% to USD 8.4 billion. In Asia, South Korea lost 15%, while Japan bucked the trend and rose 2%. Most European markets also slowed down, overall by 8%. Italy lost 10%.
The Galleries
.As mentioned above, the decline mainly affected auctions and the top end of the market. Galleries fared better, above all, those with an annual turnover below $250,000, which recorded a 17% increase in sales. Those with turnovers between one and five million had a more moderate increase of 10%. On the other hand, galleries with turnovers above 10 million recorded a 9% drop.
The trend of female artists, on the other hand, knows no downturn. In fact, the representation of women among gallery owners has grown by 6% since 2018 to 41%. Especially on the primary market, therefore, for female contemporary artists, the share rose to 46% from 36% in 2018. Their sales rose to 42%. They remain the minority, but they certainly represent a big step forward compared to the past.
Yet Contemporary art showed more difficulties, in fact, the highest prices were recorded on established artists, while Contemporary art sold at lower values. Galleries dealing only in Contemporary art suffered the greatest losses, up to -11% of sales, while more traditional sectors such as Modern Art and Old Masters performed better. Traditional media continue to dominate the market, such as painting, sculpture and works on paper, as they represent a less risky choice in uncertain times. Digital art accounts for only 1% of sales, with interest declining by 2022.
