The Art Basel and UBS Global Art Market Report 2023

Art fairs are back

Almost three-quarters (74%) of collectors surveyed had purchased work at an art fair in 2022, compared with just more than half (54%) in 2021. As more and more real-world fairs returned, 65% said that they had bought a work at an in-person event (up from 37% in 2021), while 59% were still buying through art-fair online viewing rooms.

Yet online spending is still strong

Live art fairs may have returned, but 95% of the HNW collectors surveyed said they had purchased works of art without viewing them in person, and just over half (51%) said they did this regularly.

HNW collectors are willing to pay a premium for more sustainable options

HNW collectors consider their carbon footprint one of their four chief concerns when thinking about buying a work of art, and 57% say they are willing to pay up to 25% on top of the purchase price in order to reduce the environmental impact of their acquisition, from its creation to shipping and packaging. Almost all (98%, up from 90% in 2019) said that they would opt for a sustainable option even if it was more expensive and slower.

Pledges to donate art are rising

The pandemic also appears to have encouraged philanthropic giving among some collectors, with 45% intending to donate works to a museum over the next 12 months, up from 29% in 2020 and 43% in 2021.

HNW collectors engaged

The UBS Investor Watch and Arts Economics survey indicated an increased dedication from HNW collectors, who on average purchased more art and antiques in 2021 than they did in 2020. The value of their purchases also rose, with median spend more than doubling and the proportion spending over $1 million also rising dramatically.

HNW collectors still prefer to buy from dealers

Dealers remained the preferred channel for buying art amongst the HNW collectors surveyed, with 76% having purchased through this channel at some point in the year. While online sales retained a greatly increased share of total art sales by value compared to 2019, if given a choice between offline and online experiences, most HNW collectors (69%) still preferred to view art for sale in person at a gallery or fair. 19% preferred to view art online, and 12% were indifferent.

Interest in NFTs

Outside the art market, the total sales value of art-related NFTs on the Ethereum, Flow and Ronin blockchains increased over a hundredfold to $2.6 billion. NFTs appear to hold growing appeal to HNW art collectors, with 74% of those surveyed having purchased art-related NFTs in 2021. Following landmark sales at auction, interest shows no sign of abating, with only 4% of HNW collectors surveyed stating they were not at all interested in purchasing NFTs in future. Discover more analysis

Collecting with purpose

The pandemic reconfigured societies and forced us to rethink how we collect and engage with art. For some HNW collectors this has led to a growing emphasis on philanthropic giving, with a substantial increase in those intending to donate works to a museum within the next 12 months – up from 29% in 2020 to 43% across the 10 markets surveyed. This share was highest in France (56%) and the US (50%).

Female spending rose – while female artists became more prominent

In the first half of 2021, spending by female collectors increased by just over one third to $410,000 – more than double the level of their male peers, which saw growth from 2020 of just 9% to $163,000. There was also evidence that female artists are becoming better represented in collections, accounting for 42% of all works, versus 39% in 2020, and 37% in 2019.

Digital acceleration continued

Online channels accounted for 33% of all dealers’ sales (or 37%, including art fair Online Viewing Rooms) – more than double their share in 2019. The greatest number of online sales were made via dealers’ own online channels – including their websites and OVRs, social media channels, and email.

Sustainability is top of collectors’ agendas

Our survey revealed that 77% of collectors surveyed are thinking about sustainable options when it comes to purchasing works of art or the management of their collections. Christl Novakovic, CEO UBS Europe SE and Head Wealth Management Europe and Chair of The UBS Art Board, said: “Out of crisis springs innovation and drive for change, and UBS aims to collaborate further with collectors to make advances in these areas.”

September 2021

Many collectors felt the pandemic increased their interest in collecting

Despite having fewer opportunities to buy in-person, collectors surveyed remained actively engaged with the art market in 2020, buying an average of nine works, versus 10 in 2019. 66% of those surveyed said the pandemic had increased their interest in collecting, and one third (32%) said this increase had been significant. Many intend to be active in 2021, with 57% planning to purchase more work. Foot traffic data from UBS Evidence Lab offers early indications of renewed visits to commercial galleries in 2021.

Female buying power and artist representation

Women spent more than men, with their median expenditure rising 13% year-on-year to $154,000. Although gender representation is still an issue across all regions surveyed, there are some indications that the share of female artists’ works in collections is slowly improving over time, having increased to 39% in 2020, versus 37% in 2019, and 33% in 2018. Female collectors were more likely to have a greater share of works by female artists in their collection than men (42% versus 36%).

Next Generation

Millennial HNW collectors were the highest spenders in 2020, with 30% having spent over $1 million (versus 17% of Boomers). Millennials were also more likely to be active online, reporting greater use of online viewing rooms offered by art fairs and galleries, and social media channels.

March 2021

Millennials continue to be the biggest spenders

The survey revealed differences in behavior across generations: only 3% of millennial collectors had not purchased an artwork in 2020, versus over one third of boomers. The millennial segment also had the largest share of high spenders, with 17% having spent over $1 million in the six-month period, versus just 4% of boomers. Nearly all millennial collectors and most Gen X collectors were actively working with galleries during the crisis, while 40% of boomers reported that they were not actively working with a gallery at this time.

The art market’s shift online has accelerated—and is here to stay

The art market has historically been slow to embrace e-commerce; however, findings indicate that this has changed in the face of the crisis. In the first half of 2020, online sales accounted for 37% of galleries’ total sales—up from 10% in 2019. Of the collectors surveyed, 85% or more had visited online viewing rooms for galleries or fairs, with just less than half of those having used them to finalize the purchase of an artwork. The majority (66%) of galleries surveyed anticipated that online sales in the gallery sector would further increase in 2021.

Collectors welcome improved price transparency

A shift towards greater price transparency through online viewing rooms and digital platforms was cited anecdotally by collectors as one of the more progressive outcomes of the crisis: 81% felt it was important or essential to have a price posted when they were browsing works of art for sale online, and some also felt this was important to maintain in future on- and off-line sales. ‘I think that’s something you can’t ignore,’ says McAndrew. ‘It’s good for new buyers and established collectors, as well as advisors.’

Boomers are more likely to continue to seek new discoveries

During the first half of 2020, one-third of collectors chose to only buy works by artists they were familiar with, or had bought before—a trend which, if continued, could reinforce the status quo, making it harder for younger artists and galleries to become established. Significant differences, however, were found between generations: ‘the Boomer generation is actually the one most interested in looking for new galleries, which runs contrary to what you might have thought,’ notes Horowitz. 35% of Boomers said they were seeking new discoveries—more than twice the share of millennial collectors.

Collectors continue to value physical encounters with art above all

Though online platforms are widely used, collectors indicated that they are not their preferred means to interact with the art market. Asked how they would prefer to view art, 70% opted for attending a physical or offline exhibition or fair, versus 30% who preferred to use online viewing rooms or other online platforms. Despite ongoing restrictions on travel, most collectors (82%) were still actively planning to attend exhibitions, art fairs and events sometime in the next 12 months. ’Humans are naturally curious; we don’t like sitting at home,’ says Paul Donovan, who anticipates international travel will return despite an immediate trend towards localization.

Asked to identify a positive emerging trend, Donovan identifies the ‘striking’ surge in business creation since the end of lockdowns. ‘People are setting up their own businesses. To me, that signals a general degree of confidence in the economic future [..] We always underestimate how much people can adapt in the face of changing circumstances. I think the same applies for the art market.’

Commenting on the report Christl Novakovic, CEO of UBS Europe SE and Head Wealth Management Europe, said: ‘From our conversations with collectors it is apparent that there is a continued drive to support the market. Digital platforms can increase price transparency and broaden the base of new buyers at different price levels. Strengthening this globalized community is essential for the health of the market in the future.’

September 2020

Female collectors had a higher average level of spending than men

Though there were fewer female collectors, those surveyed had a higher average level of spending than men – with 16% having spent more than $10 million in the last two years. Female collectors also had larger collections than men on average, with one-third exceeding 100 works.

Nearly half of collectors had purchased through an online platform

48% of high-net-worth collectors surveyed said they ‘always’ or ‘often’ purchased works through online platforms. Of those that had bought online, one quarter had spent more than $100,000, while 8% had spent over $1 million – double the share that had spent at that level in 2018.

Auction sales made up 42% of the market, while those in the dealer sector accounted for 58%

Sales at public auction reached $24.2 billion in 2019 – down 17% after two years of consecutive growth. Despite the decline in public auction sales, private sales increased in all the major top-tier Western auction houses. Globally, dealer sales increased by 2% year-on-year to an estimated $36.8 billion.

Art fairs remained a central part of the global art market

In 2019, aggregate sales from art fairs reached an estimated $16.6 billion – accounting for 45% of the total value of global dealer sales. New data shed lights on the distribution of art fair sales: 15% were estimated to take place pre-fair ($2.5 billion); 64% during fairs ($10.6 billion); and 21% were made after the fair as a direct result of participation ($3.5 billion).

Female artists and collectors gained slightly greater representation

Women accounted for 44% of all artists represented by galleries working in the primary sector – an increase of 8% year-on-year, according to dedicated research into gender issues. Female buyers were also more prominent, accounting for 36% of all dealer transactions – an increase of 9% on 2018.

Paul Donovan, Chief Economist, UBS Global Wealth Management, said: "The art market often mirrors the trends and economic developments we see in wealth creation. The growth of millennial and female spending power today is part of that. But even economists must admit that there is more to life than economics. True collectors are driven by passion and an appreciation for quality. Art pays emotional dividends, enriching lives in a way that GDP can never capture."

UBS shares its passion for art and collecting with a global community of clients and has one of the world’s largest and most important corporate art collections. The firm seeks to advance the international conversation about the art market through its global lead partnership with Art Basel and as co-publisher of this report. UBS provides its clients with insight into the art market, collecting and legacy planning through its Art Collectors Circle and UBS Art Advisory.

March 2020