The 2024 Art Basel and UBS Survey of Global Collecting reveals that despite economic challenges, high-net-worth individuals (HNWIs) in the art market have shown a strong commitment to art and antiques.
The report covers 14 major global markets and highlights spending behaviors and patterns from 2023 and the first half of 2024. While public auction sales have slowed down, collectors have continued to invest, indicating a resilient appetite for art.
Auction sales at prominent houses such as Christie's, Sotheby's, Phillips, and Bonhams have declined by 26% in the first half of 2024 compared to the same period in 2023, falling below pre-pandemic levels. However, global imports of art and antiques have shown growth for the third consecutive year, reaching a value of $33 billion, driven by sustained demand from major importing regions like Hong Kong.
The survey also reveals a shift in spending patterns among HNWIs. In 2023, average expenditure dropped by 32% to $363,905, primarily influenced by reduced spending at the highest levels. However, the median expenditure saw a less dramatic change, falling from $50,165 in 2022 to $50,000 in 2023. The first half of 2024 suggests a stabilization in spending, with a median of $25,555, potentially indicating a consistent annual level.
Younger HNWIs, particularly millennials, experienced a significant decrease in spending, with a 50% drop to $395,000 in 2023. In contrast, Gen X respondents maintained the highest average expenditure at $578,000, continuing to lead in the first half of 2024. HNWIs from Mainland China emerged as the top spenders on art and antiques, with a median expenditure of $97,000, more than double that of any other region.
The survey also highlights a growing openness among HNWIs to explore new artists, with over half of their expenditure in 2023 and 2024 directed towards works by emerging talents. Spending on mid-career and established artists saw slight declines. The preference for living artists remains strong, with 17% of spending allocated to their works, compared to 9% for deceased artists. The representation of female artists in HNWIs' collections has seen a significant rise, reaching a ratio of 44% in 2024, the highest in seven years. Among those HNWIs who have spent over $10 million on art and antiques in 2024, 52% of their expenditure was directed towards female artists.
The survey underscores the importance of a multichannel approach for art dealers, with 95% of respondents purchasing art through various channels, including galleries, online platforms, and art fairs. In the first half of 2024, 41% of HNWIs reported buying at art fairs, while 67% engaged in auctions. Dealers play a crucial role in the art acquisition process, accounting for 60% of total spending in the first half of 2024. HNWIs are willing to engage with new galleries, with 88% of those buying from dealers having interacted with at least one new gallery.
Despite some HNWIs reducing their allocations to art within their overall wealth portfolios, the wealthiest respondents, those with over $50 million, maintain a higher allocation, dedicating an above-average 25% of their wealth to art collections. This evolving landscape of art collecting reflects broader economic trends and the shifting priorities of HNWIs, but it also demonstrates the enduring value and significance of artistic expression in times of uncertainty.