About Art Collectors Now

The art market demonstrates remarkable resilience and adaptability in an era marked by global economic uncertainty and political instability. Artsy's Art Collector Insights 2024 report, an annual survey drawing from the responses of over 2,100 art buyers across six continents, offers a comprehensive look at the current state of art collecting. This in-depth analysis reveals several key trends shaping the industry and provides valuable insights into the art market's future.

Economic Context and Market Resilience

The art market in 2024 is operating against a backdrop of cautious optimism. While major auction houses reported a 27% decline in results for the first half of the year compared to 2023, the broader collector market shows signs of stability and even growth. The World Bank's forecast of global inflation falling to 3.5% by the end of 2024 (down from 6.8% the previous year) suggests an improving economic environment that could bolster art market activity.

Resilient Spending and Budget Allocation

Despite economic headwinds, the appetite for art collecting remains robust:

- 80% of respondents reported that their art budgets 2023 either stayed the same or increased compared to the previous year.

- 79% of collectors purchased the same amount of art or more in 2023 as a typical year, marking a four-point increase from the previous year's report.

- Most collectors (52%) purchased between two and five artworks last year.

- The most common price point for purchased works was under $5,000 (47% of respondents), followed by $5,000-$9,999 (18%), and $10,000-$24,999 (13%).

These figures indicate a healthy market with sustained collector interest across various price points, suggesting that art remains an attractive asset class even in uncertain times.

The Digital Revolution: Online Sales and Young Collectors

One of the most significant trends highlighted in the report is the continued growth and importance of online art sales, particularly among younger collectors.

- 76% of respondents said they purchased the same amount of art or more via online marketplaces in 2023 compared to 2022.

- Only 9% reported spending less online compared to previous years.

High-budget collectors (those spending $100,000 and above) are embracing online marketplaces at an even higher rate, with 80% spending the same or more via these channels in 2023 compared to 2022.

Young Collectors Leading the Digital Shift

Younger collectors, defined as those aged 36 or younger, are at the forefront of the digital art-buying revolution:

- 82% of young collectors have purchased art online, compared to 77% of older collectors.

- 47% discover new artists through online marketplaces, versus 43% of older collectors.

- 42% allocate more than 75% of their art budget to online purchases, compared to 29% of older collectors.

?This digital-first approach among younger collectors suggests a continuing trend towards online art sales and discovery, which could reshape the art market landscape in the coming years.?

Motivations and Attitudes of Young Collectors

The report also reveals interesting insights into the mindset of younger collectors:

- 56% purchase art to build a collection, compared to 46% of older collectors.

- 40% buy art to support artists, versus 34% of older collectors.

- 29% consider having underrepresented artists in their collection important, compared to 20% of older collectors.

- 50% view art as an investment, versus 39% among older generations.

- 53% prioritize having emerging artists in their collection, compared to 40% of older collectors.?

These findings suggest that younger collectors are more likely to view themselves as active participants in the art world, focusing on building diverse, meaningful collections that align with their values and investment goals.

The Pressing Need for Price Transparency

One of the report's most striking findings is the overwhelming demand for price transparency in the art market. This issue emerges as a critical factor shaping the future of art sales, particularly in the online space.

- An astounding 95% of collectors consider seeing listed prices necessary when purchasing art online.

- Only 1% said visible pricing was unimportant, with 4% feeling neutral.

- The lack of visible pricing was cited as the primary hindrance to online art purchases by 56% of respondents.

This strong preference for transparency challenges the traditional art world practice of obscuring prices and could drive significant changes in how galleries and online platforms present artwork for sale.

Impact on Online Purchasing Behavior

?The importance of price transparency becomes even more critical when considering the frequency of online art browsing:

- 52% of respondents browse art online daily.

- Many collectors report being comfortable with purchasing other luxury goods through digital channels, including designer clothing (43%), jewellery (29%), and watches (26%).

These habits suggest that the art market could benefit from adopting the more transparent pricing models standard in other luxury goods sectors.

The Evolving Role of Art Fairs

?Despite the growth in online sales, traditional art fairs play a crucial role in the art market ecosystem. The report provides valuable insights into collector behavior and preferences regarding these events.

?Attendance and Future Plans

- 62% of respondents attended at least one in-person art fair in 2023.

- Among those who attended fairs, 69% attended between two and five events.

- 67% plan to attend 2-5 art fairs in 2024, indicating a stable interest in these events.

- There was a slight reduction in plans among those who attended more than 10 art fairs last year, with 42% of this group planning to attend fewer fairs in the coming year.

Motivations for Attending Art Fairs

Collectors attend art fairs for various reasons, with discovery being the primary motivation:

- 71% attend to discover new artists.

- 51% go to gain access to specific artworks.

- 25% aim to meet new galleries.

- 21% use fairs to connect with galleries they already have relationships with.

- Only 6% cited the opportunity to travel to an exciting destination as a primary motivation.

These findings underscore the continued importance of art fairs as platforms for discovery and networking within the art world.

The Enduring Importance of Galleries

Despite the digital shift, galleries remain central to the art world ecosystem. The report highlights their critical role in education, sales, and long-term collector relationships.

Galleries as Educational and Starting Points

- 34% of respondents learned about collecting art through gallery visits, the highest proportion among all options.

- 42% first started purchasing art from a gallery, again the highest percentage among various channels.

- 85% of collectors have purchased art from a gallery since they started collecting.

Ongoing Relationships with Galleries

- 55% of respondents have bought repeatedly from between two and five galleries in the past five years.

- Galleries remain the primary source for discovering new artists, with 76% of respondents typically discovering artists through gallery exhibitions, compared to 52% at art fairs.

These statistics demonstrate that while online platforms are growing in importance, galleries play a vital role in nurturing collector relationships and facilitating art discovery and purchases.

The Practice of Discounting in the Art World

The report illuminates the often-opaque practice of discounting in the art world, providing valuable insights into this common but rarely discussed aspect of art sales.

Prevalence and Scale of Discounts

- 55% of collectors negotiated a discount on artworks purchased last year.

- 42% received discounts on more than half of the artworks they purchased in 2023.

- The most common discount range requested was between 11% and 20% (55% of respondents), followed by discounts of 10% or less (28%).

High-Budget Collectors and Discounting

Collectors with higher budgets ($100,000 and above) show a greater tendency to negotiate discounts:

- 88% of high-budget collectors negotiated discounts on all artworks they purchased last year.

- 16% of this group asked for discounts between 21% and 30%, compared to 13% among respondents with lower budgets.?

Consistency in Discounting Practices

The report indicates that discounting practices remained broadly consistent with the previous year:

- 74% of collectors who received discounts said the number of artworks they received discounts on in 2023 was roughly the same as in 2022.

- 63% said the percentage discounts they received were similar to those in 2022.

- Only 13% reported receiving more significant discounts in 2023 than the previous year.

These findings align with Artsy's earlier Art Industry Trends report, where only 22% of galleries said they offered more discounts in 2023 than in 2022, and 50% maintained similar discounting rates.

?Looking Ahead: The Future of the Art Market?

As we move further into 2024, the art market is in a state of dynamic evolution. Several key trends and challenges emerge from the Artsy report:

?1. Digital Integration: The continued growth of online sales and discovery platforms suggests that digital integration will be crucial for galleries and artists looking to reach new audiences, particularly younger collectors.

?2. Transparency Demands: The overwhelming call for price transparency may change how artworks are presented and sold, both online and in traditional settings.

3. Generational Shift: The differing attitudes and behaviours of younger collectors indicate a potential long-term shift in collecting practices, with a greater emphasis on diversity, emerging artists, and online engagement.

4. Resilience and Adaptation: Despite economic uncertainties, the art market's ability to maintain collector interest and spending levels demonstrates its resilience and capacity for adaptation.

5. Balancing Tradition and Innovation: The continued importance of galleries and art fairs alongside growing online platforms highlights the need for a balanced approach that combines traditional art world practices with technological innovation.

6. Investment Mindset: The increased view of art as an investment, particularly among younger collectors, may influence market dynamics and collecting strategies in the coming years.?

As the industry continues to navigate economic uncertainties and changing collector preferences, this balance between innovation and tradition may well be the key to its ongoing success. The Artsy report paints a picture of an art world that is simultaneously embracing new technologies and maintaining its traditional roots, suggesting a dynamic and adaptable market ready to face future challenges and opportunities.?

The art market 2024 and beyond will likely be characterized by increased digital engagement, greater transparency, and a new generation of collectors shaping the landscape. However, the enduring value of personal relationships, physical experiences, and the timeless appeal of art itself ensures that the core essence of the art world remains intact, even as it evolves to meet the demands of a changing global environment.