The art market is on the verge of a significant transformation as a massive amount of wealth is expected to change hands in the next two decades. This transfer of wealth will bring a new generation of collectors into the art world, including partners, spouses, and children of high-net-worth individuals. These emerging collectors are likely to have different perspectives and strategies when it comes to art collecting, reflecting a broader cultural shift in motivations.
Noah Horowitz, CEO of Art Basel, has highlighted findings from the Art Basel and UBS Survey of Global Collecting, which shows a decline in average spending among millennial high-net-worth individuals. This decline is seen as a signal of a broader market shift, with reduced activity from high-end buyers. However, despite this downturn, median spending has remained strong in 2023 and the first half of 2024, with an increase in attendance at art-related events.
The Art Basel and UBS Survey of Global Collecting 2024, conducted by Dr. Clare McAndrew, provides insights into the attitudes and behaviors of high-net-worth individuals regarding art and antiques. The survey reveals that despite the decline in average spending, overall activity levels in the art market remain consistent and robust. High-net-worth individuals are engaging with a diverse range of galleries and price points, indicating a shift away from high-end sales.
The survey also highlights the generational transfer of wealth and its impact on art collecting. A large majority of high-net-worth individuals reported inheriting or receiving works of art, with many retaining at least some of these pieces. Interestingly, less than one-third of millennial and Gen Z respondents indicated that inherited works did not fit their collections, suggesting a continuity in the appreciation of art across age groups.
Furthermore, high-net-worth individuals are increasingly willing to purchase from new galleries, reflecting a democratization of the art market. They are diversifying their portfolios and supporting emerging talent. There is also a growing interest in female artists, with their representation in collections reaching a seven-year high.
Despite the complexities of the current market landscape, high-net-worth individuals remain optimistic about the future of the global art market. The first half of 2024 has shown signs of spending stabilization, and the majority of surveyed individuals express confidence in the market's performance over the next six months.
In summary, the art market is undergoing a transformative phase driven by the great wealth transfer. New collectors with fresh perspectives and a focus on purpose-led collecting are entering the scene. As high-net-worth individuals adapt to changing market dynamics, there is an emphasis on supporting emerging artists and engaging with diverse galleries, which is likely to shape the future of art collecting.