The global art market experienced a decline in 2023, as reported by UBS, with total sales dipping 4% year-on-year to approximately $65 billion. This slowdown followed two years of strong growth, with economic factors like high interest rates, inflation, and political instability cited as major influences. Despite the decline, market values still exceeded pre-pandemic levels of $64.4 billion in 2019.
While the total market value decreased, transaction volumes actually grew by 4% to 39.4 million, bolstered by more activity in lower-price segments within both the dealer and auction house sectors. However, the high end of the market saw a significant pullback, affecting overall performance.
Auction sales were hit harder than dealer sales, dropping by 7% compared to a 3% decline for dealers. Some stability was provided by delayed 2022 sales in China, which lifted early 2023 numbers. Regionally, the U.S. retained its top position, contributing 42% of global art sales, despite a 3% decrease. China rose to second place with a 19% market share, pushing the UK to third at 17%, while France remained steady in fourth at 7%.
After reaching a record high of $30.2 billion in 2022, the U.S. market fell by 10% to $27.2 billion in 2023. The UK, facing pressures on high-value transactions and a decline in art imports, saw an 8% drop to $10.9 billion, falling 11% below its 2019 level. France also saw a 7% drop to $4.6 billion, though still slightly above pre-pandemic figures.
Interestingly, online art sales defied the broader market slowdown, climbing by 7% to reach an estimated $11.8 billion, though down from their 2021 peak of $13.3 billion. Online sales represented 18% of total market turnover, driven largely by lower-priced transactions under $50,000.
The NFT market, after peaking in 2021, also saw a steep decline. Art-related NFT sales fell to $1.2 billion, a 51% decrease year-on-year, with the broader collectibles market contracting by 64% to $6.3 billion. Despite these declines, collectibles retained a dominant position, making up 84% of NFT-related sales, compared to 16% for art NFTs.
