According to the annual report “The art and collectibles market” presented by Deloitte 2023 had a physiological adjustment, recording an overall drop in turnover at a global level of approximately 3%. The substantial stability of the turnover is inevitably caused by the macroeconomic uncertainties and the new geopolitical tensions that characterized the second half of the year
Global art turnover declining
The decline in overall turnover of Christie’s, Sotheby’s and Phillips was mainly determined by the sharp reduction in the segment painting (-26,8%), while the widespread interest in the food sector Passion Assets contributed to mitigating the decrease in total turnover compared to the previous year (-5,4% compared to 2022).
Passion Assets and luxury goods as objects of desire
Object of desire for many new collectors, they are in fact confirmed to be the Passion Assets, as bags, sneakers, watches and wines e vintage.In the sector most of the luxury goods they dominate Watches e design, as demonstrated by the online auctions dedicated to watches and a growth of +45% also for design auctions.
Greater interest in African artists
Contemporary works of art have ceded the top positions among the top lots to more historicized artists with more stable prices. But even in 2023 there was no shortage of excellent results for artists under 40 now known on the international market, including in particular female artists and African artists. There is also emerging interest in young talents of ultra-contemporary art, millennials who are characterized by colorful painting, very often figurative and suitable for posting on social media.
«Global demand for collectibles has slowed down, especially in the high end of the market and, in general, a more cautious attitude has prevailed in recent months, while the wave of enthusiasm at the end of the pandemic, which began in 2021 and materialized in 2022, has undergone a inevitable setback, with effects also on the average prices of the lots. However, collectors continue to demonstrate interest in quality goods in the sectors relating to visual arts, luxury goods, jewellery, bags and collectible design which still allows the maintenance of comparable turnover levels in the two years 2022 and 2023 by eliminating the 2022 from non-recurring impactsHe explains Ernesto Lanzillo, Partners e leaders di Deloitte Private Italy.
Gen Z and Millennials on the market
«One of the most interesting trends emerging from this year’s report is that of the growth of new buyers among younger generations, especially under 40s, who continue to drive demand as a direct consequence of digitalisation and the expansion strategies of the main majorsHe comments Barbara Tagliaferri, Partner e Art&Finance Coordinator di Deloitte Italy. Christie’s recorded a +35% increase in new customers, of which over a third were Millennials. Sotheby’s and Phillips also say that of the 40% of new bidders, one third are the Millennial generation.
New York is number one, Paris continues to grow while London declines
– United States, with New York, continue to be the most active market with the largest base HNWIMore e Ultra-HNWI in the world and a strong cultural infrastructure. Asia is also doing well in particular Hong Kong. London has lost ground again, as demonstrated by the auctions of the last months of the year, conquered largely by Paris which benefits from the huge investments of galleries and international fairs in the French capital.
Art fairs
After the difficult three years caused by the pandemic, fairs are starting to resume their role as a place of exhibition and sale by the galleries present. The 46th edition of Bologna Art Fair, confirmed the recovery of the exhibition sector in Italy, with the presence of 50 thousand visitors. Also MiArt, which took place in April 2024 in Milan, confirmed itself as the Italian fair with the widest chronological offering of modern and contemporary works of art.
NFT and Cryptoart
2023 confirms the weakening trend of this segment. A positive note is the introduction of a specific regulation: the MiCA Regulation, published in June 2023 in the EU, constitutes one of the first regulations in the global context which aims to prepare a regulatory framework applicable to the various types of crypto-assets. In Italy, the 2023 Budget Law has provided specific indications regarding the tax treatment applicable to cryptocurrencies, although there is no shortage of doubts.
Technology to support the development of art and finance
64% of wealth managers say technology could be a catalyst for incorporating art and collectibles into existing wealth management services. And technological innovation will promote greater transparency in the market
Future regulation: fractional ownership and tokenization
Over the past three years, worldwide interest in fractional ownership of art and collectibles has exploded, particularly among younger collectors. With assets estimated to be over $1 billion in 2023, fractional ownership of fine art and collectibles may see development in the near future. However, there is a conservative approach to fractional ownership and tokenization, likely due to the lack of historical data and the emerging nature of the industry. In 2023, in fact, 81% of asset managers, 79% of collectors and 83% of art professionals said that technology could increase the availability and quality of data and information in order to guide choices ‘purchase.
