UBS and Art Basel today released the Art Basel and UBS Global Art Market Report, compiled by cultural economist Dr. Clare McAndrew with research from UBS and its Chief Investment Office. The report, a comprehensive and up-to-date macro analysis of the international art market, explores key market trends in the context of general economic changes.
Global sales
In 2017, the art market reached an estimated level of total sales of USD 63,7 billion, an increase of 12% compared to 2016. Growth in the auction and intermediary sectors was largely concentrated in the market high; the most obvious indicator is the record prices achieved at auctions, such as the USD 450 million paid for Leonardo da Vinci's painting «Salvator mundi» in an auction at Christie's.
Main markets
The USA is the largest market in the world, accounting for 42% of the value of sales, with China in second place at 21% and the UK third at 20%. 72% of intermediary sales in the US went to local buyers.
Growth in Asia
The Asian market accounted for 23% of global sales in 2017, while Asian buyers made 15% of global transactions through intermediaries. Chinese shoppers alone accounted for the lion's share with 10%, a significant increase from a meager 4% in 2016 that demonstrates once again the continued growth in purchasing power in Asia.
Auction data
Public auction sales of fine arts, decorative arts and antiquities reached USD 28,5 billion in 2017, up 27%, allowing total auction sales to represent 47% of the market. The most notable increases have been recorded in the ultra-high range, with the total value of works sold at over USD 10 million increasing by 148% in 10 years and by 125% year-on-year in 2017.
Intermediary data
Sales through intermediaries grew by 4% year-on-year to an estimated value of USD 33,7 billion, or 53% of the market. The strongest year-over-year sales growth was in the above USD 50 million segment. Some US brokers reported increased year-end activity, thanks to the Trump administration's tax reform and the abolition of 1031 Like-Kind Exchanges earnings deferral for the arts.
Art fairs
Art fairs still play a vital role in the global art market and accounted for an estimated 46% of intermediary sales in 2017, when aggregate sales were estimated at USD 15,5 billion.
Online sales
The online art market has experienced significant growth of 72% over the past five years, reaching an estimated value of USD 5,4 billion in 2017.
The report draws attention to two major lines of research from UBS and its Chief Investment Office:
- A survey of the habits of US high net worth individual collectors, carried out in collaboration with Clare McAndrew and her team as part of the quarterly UBS Investor Watch report, estimated that 35% of them, or 1 million HNWI, participated in the markets art and collectibles. 93% of respondents said they mostly bought at prices below USD 50, while direct purchases from a gallery or art fair are the preferred channel for 000% of respondents. 43% believe that the passion for collecting art is a way of expressing their personality, while for 73% the motivation came from the intention to support art and culture, with a higher share among women ( 63%) than among men (71%). There is also a particular propensity to support local and national artists as well as artists still alive. 59% of the collectors interviewed stated that they have never sold a work from their collection and, while 86% of the interviewees have a professional financial advisor, relatively few have resorted to an art advisor (73%).
- UBS/PwC Billionaires Report 2017 reports growth in billionaires' commitment to art, as evidenced by higher rankings of the world's top collectors in journalism, growth of private museums especially in Asia, and increased private funding to public museums. Today there are more Asian billionaires than Americans and their net worth could surpass it within four years.
Paul Donovan, Chief Economist for Global Wealth Management at UBS, said: “Art can give us insight into our complex and unpredictable world by challenging canonical ways of thinking. The performance of today's globalized and growing art market is a fascinating reflection of general economic trends and has a strong correlation with GDP and the number of HNW people. Collecting is a passion we share with many of our clients, and alongside our exclusive art services, our partnership with Dr. Clare McAndrew and Art Basel is a logical continuation of our ongoing commitment to research and development. analysis of markets and economic data for the benefit of our clients.»
