Art Market 2022 Review
After the massive global slowdown triggered by the pandemic, 2021 saw an encouraging bounce-back for the art market. But while aggregate sales in the dealer auction houses exceeded an estimated $65 billion, this figure still remained below pre-pandemic levels. Jump to 2022, however, and spending on art has shown a significant uplift with figures in the first half of the year alone nearly doubling that in the whole of 2019. And, according to the findings of A Survey of Global Collecting in 2022, the art market may be headed for even stronger gains.
Amongst the genre frontrunners in sales for 2022 was Abstract Expressionism. One key driver behind this has been the growing number of younger painters tending towards the form. Break-out names in this field have been on the rise and helped fuel the growth of the emerging contemporary art market over the last year. The ultra-contemporary art market alone – works by artists under 40 – generated $420 million between July 2021 and June 2022, a 28% increase on the previous year. While this trend is expected to be on track to continue, if you are considering investing in this end of the market it’s especially important to seek guidance from an Art Advisor to ensure you make a sound acquisition.
Another significant driver for art sales has been the purchasing power of high-net worth collectors, many who saw their wealth grow during the pandemic. As well as an uptick in the volume of purchases, HNW collectors are using their increased disposable income on more expensive art than the previous year, with the share of works priced more than $1million nearly doubling from 2021, from 12% to 23%. Significantly, 2022 saw the landmark sale of Warhol’s Shot Sage Blue Marilyn (1964) for $195m at Christie’s New York, setting the record for the most expensive work from the 20th century to sell at auction.
Despite a robust resumption of in-person events and fairs in 2022, the shift towards online art sales is here to stay – and spending remained strong this year. When buying from a dealer, 42% of collectors do still prefer buying art face-to-face at a gallery, though this is down from 57% in 2020 with 37% favouring online (a boost of 8% from 2020). The crypto space saw even more turbulence than usual in 2022. In the first half of the year collectors surveyed shelled out an average of $46,000 on art-based NFTs, more than what they spent in the entirety of 2021. The crash in the price of cryptocurrencies halfway through the year had a knock-on effect for NFTs, with a sharp contraction of nearly -46% (from $110.5 million to $60 million).
“Amongst the genre frontrunners in sales for 2022 was Abstract Expressionism. One key driver behind this has been the growing number of younger painters tending towards the form.”
Despite the headwinds of rising inflation and rumblings of a global recession, collectors say they are optimistic about how the art market is moving. There are plenty of reasons to feel positive about the on-going buoyancy of art sales, with the recovery of all sectors of the market, continued growth in digital art and excitement surrounding emerging talent.
NFT Courtesy of Citi Bank Art Lending Services