Global art market value dropped by 4% in 2023 due to ‘inflation and wars’, Art Basel/UBS report reveals
The global art market saw a 4% decline in 2023, totaling $65 billion, according to the latest Global Art Market Report by UBS/Art Basel. The contraction was mainly attributed to a decrease in sales of high-priced works priced at $10 million and above. Factors such as rising interest rates, inflation, wars, and political instability led to more selective and cautious buying at the high-end market.
Auction sales fell by 7% while dealer sales only dropped by 3%. The US remains the dominant player in the global market, with a 42% market share, although its domestic art market contracted by 10% year-on-year. London, a key city for high-value works, also saw a noticeable decline in the UK’s total market, falling by 8% to $10.9 billion.
In contrast, post-pandemic spending in China and Hong Kong helped prevent further market decline, with sales in the region increasing by 9% year-on-year to $12.2 billion. However, challenges in the Chinese property market and economic uncertainty are expected to impact the market in the coming years.
The report highlights the importance of middle-tier galleries, noting an 11% increase in sales for galleries with turnovers below $500,000. While concerns over rising business expenses persist, online sale channels continue to play a significant role in the market.
Despite the challenges faced in 2023, there is optimism for the future, with 36% of dealers surveyed expressing positivity for sales in 2024. The report emphasizes the resilience of the art market in the face of financial, social, and political changes.
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Cillian O’Rourke, studied at the National College of Art and Design in Dublin, Ireland, where he majored in Visual Communication. His work spans graphic design, illustration, and branding, with a distinct minimalist style that emphasizes simplicity and impact. Cillian has collaborated with international brands and runs his own design studio focusing on creative solutions for startups.