The Art Market’s Paradigm Shift: From Speculation to Personal Taste
Artnet Intelligence Report 2025
Spring 2025, by Roland-Philippe Kretzschmar
The latest Artnet Intelligence Report signals a significant realignment within the art world. Total fine-art auction sales fell dramatically in 2024, down 27.3 percent to $10.2 billion, marking a continued decline since 2023. Particularly striking was the collapse of the trophy art market, with sales of works priced above $10 million dropping by 44.2 percent, and ultra-contemporary art sales declining by nearly 38 percent. Yet, these figures suggest more than an economic dip—they herald a deeper cultural shift.
A Generational Turnover: Millennials and Gen Z
The report highlights millennials and Generation Z as pivotal actors reshaping art collecting. With an expected intergenerational transfer of $84 trillion over the next two decades, these groups are poised to dominate art purchasing power. Unlike their predecessors who often collected for investment or status, younger collectors favor art that resonates personally, culturally, and digitally. This shift represents a movement away from traditional blue-chip investments toward an engagement driven by genuine passion and social relevance.
Art advisor Katya Kazakina exemplifies this trend through collectors Justine Freeman and Benjamin Khakshour, who focus on ultra-contemporary female artists such as Jadé Fadojutimi, Rachel Jones, and Loie Hollowell. These choices mark a deliberate departure from the collections of previous generations, emphasizing themes of gender equity, diversity, and emotional connection rather than conventional status markers.
Mid-Tier Market Resilience
Interestingly, the most resilient segment during this market correction is the mid-tier range ($100,000–$1 million). This price bracket, historically overshadowed by headline-grabbing multi-million-dollar sales, is now enjoying steady activity. The report notes that day sales—traditionally quieter auction sessions—are becoming significant barometers of this new market direction, reflecting buyers’ commitment to personal taste over speculative investments.
Spotlight on Artists: The Rise of New Voices
Jean-Michel Basquiat continues to dominate contemporary sales, occupying seven of the top ten slots. However, the report underscores a notable diversification among younger, ultra-contemporary artists. Names such as Avery Singer, Lynette Yiadom-Boakye, and Toyin Ojih Odutola are gaining traction, supported by buyers looking for compelling narratives and authenticity over prestige alone. The rise of women and artists of color within these ranks signals a marked shift towards inclusivity and representation within art collections.
The Middle East Emerges as a Cultural Powerhouse
Geopolitical changes significantly impact global art dynamics, particularly with China’s art market contracting by 46.1 percent and the UK's performance at its weakest in a decade. Conversely, the Middle East, led by Saudi Arabia's ambitious "Vision 2030," is rapidly ascending. The report highlights interviews with Christie’s Anthea Peers, Art Dubai’s Alexie Glass-Kantor, and gallerist Leila Heller, emphasizing the region's investment in cultural infrastructure, institutions, and cross-category collecting practices.
Heller notes, for instance, feeling more empowered professionally in Dubai compared to Western hubs, underscoring the transformative cultural environment there. The increasing presence of international art fairs, museums, and biennials in Saudi Arabia, UAE, and Qatar further illustrate the Middle East’s growing global cultural influence.
Online Platforms and New Collecting Patterns
Another significant trend is the sustained growth in online sales, with younger buyers becoming increasingly comfortable acquiring art digitally. Platforms like Avant Arte illustrate how the internet is democratizing art collection, expanding accessibility, and reshaping collectors' profiles. Entry-level purchases are proving essential in nurturing a new generation of collectors who are digitally savvy, globally minded, and personally invested.
Conclusion: Redefining Cultural Capital
Ultimately, this transformation extends beyond economics, reflecting profound changes in the perception of art’s value and purpose. As the report suggests, art collecting is shifting from being an elite investment or speculative endeavor to becoming a form of personal and cultural expression. The evolving tastes and values of new generations promise not just a recovery but a profound evolution of the art market itself.
In essence, collectors—not speculators—now drive the future of the art market.
Emerging Art Trends for 2025
The art world in 2025 is set to be defined by a convergence of technological innovation, cultural shifts, and a deep commitment to addressing global challenges. Insights from leading curators, arts organizations, and recent predictions reveal the following key trends:
1. AI and Algorithmic Art
Artists are leveraging artificial intelligence (AI) and algorithms to push creative boundaries, crafting works that challenge traditional notions of authorship. Interactive, dynamic, and evolving, these pieces invite audiences to engage with art in new ways. This trend highlights the role of technology as a collaborator in art-making.
2. Environmental and Sustainable Art Practices
With increasing environmental awareness, artists are embracing sustainable materials, ethical sourcing, and "upcycling" techniques. Works addressing climate change and global ecological issues will dominate exhibitions, reflecting art’s potential to inspire activism. Installations that actively contribute to conservation efforts, such as living sculptures and biodegradable works, are gaining prominence.
3. Elevated Recognition for Women and Indigenous Artists
Curators predict greater visibility for women and Indigenous artists whose work often intersects with activism. By redefining traditional narratives, these artists are reshaping the art world’s engagement with historical and cultural representation.
4. Neo-Medievalism and Nostalgia
Reflecting a longing for pre-digital simplicity, neo-medievalism is making a resurgence across art, fashion, and design. Drawing inspiration from medieval aesthetics, this trend reflects broader cultural anxieties about technology and modernity.
5. Biotech and Living Art
At the intersection of science and art, biotech art explores the use of biological processes and living organisms in creative works. Artists are creating bio-hybrid installations and sculptures that evolve, blending scientific innovation with philosophical inquiries about humanity’s relationship with nature.
6. Participatory and Immersive Art
Interactive art that blurs the line between creator and audience will become increasingly prevalent. Exhibitions encouraging participation foster deeper connections and expand the role of the viewer in the creative process.
7. Revival of Traditional Crafts
A renewed interest in natural materials, such as ceramics, textiles, and other crafts, is evident. Artists like Melissa Joseph and Sarah Zapata merge contemporary themes with traditional techniques, emphasizing sustainability and craftsmanship.
8. Interdisciplinary and Architectural Influences
Artists are continuing to integrate multiple disciplines, particularly architecture, into their works. Projects like Lauren Halsey’s emajenda and Torkwase Dyson’s contributions to the Whitney Biennial illustrate this dynamic.
9. Sociopolitical Narratives
Artists are tackling urgent sociopolitical themes, such as identity, inequality, and political instability. These works serve as both reflections and critiques of contemporary society, creating spaces for dialogue and transformation.
Conclusion
The art trends of 2025 reveal a vibrant and transformative landscape. As technology and tradition intersect, the role of art as a platform for activism, innovation, and emotional connection continues to expand. Artists are not just reflecting the world—they are shaping its future.
New Podcast Episode + News on Scandinavia’s Leading Independent Art Platform
The Art Bystander News #4:
Dear friends,
2024 has been a monumental year for The Art Bystander. We’re proud to announce that we’ve solidified our place as Scandinavia’s leading independent art platform—not just in terms of reach, but also as a multifaceted hub for services, insights, and connections that elevate the art world.
This success is a reflection of our commitment to bridging the cultural and commercial sectors of art while staying true to our mission of making art accessible, meaningful, and exciting for all.
The Reach of The Art Bystander
Our community has grown organically and exponentially, with over 116,000 followers on Instagram who rely on us for daily updates, insights, and inspiration. Meanwhile, our podcast, The Art Bystander, has become a trusted voice in the art world, with listeners tuning in to hear engaging conversations with artists, curators, and collectors who are shaping contemporary art.
This growth isn’t just about numbers—it’s about impact. Through our platforms, we’re fostering deeper conversations about art and building a community where creativity thrives.
A Platform with a Purpose
At its heart, The Art Bystander is more than a platform—it’s a movement to connect the cultural and commercial dimensions of the art world. Here are the ways we’ve expanded our offerings this year:
Instagram: Our Instagram serves as a dynamic space for art lovers, featuring daily updates on exhibitions, in-depth artist highlights, the latest industry trends, and exclusive behind-the-scenes insights. From showcasing emerging talents to celebrating established masters, our content is designed to inspire, educate, and spark meaningful conversations within the art community.
The Podcast: Our episodes dive deep into the art world’s most pressing topics, featuring luminaries and emerging voices alike. Whether we’re exploring cutting-edge exhibitions, addressing the future of collecting, or uncovering the untold stories behind iconic works, the podcast is a space for inspiration and education. Guests on the show during 2024 have been Sharon Stone, Joel Shapiro, Ugo Rondinone, Simon de Pury, Nicolas Hugo, Björn Wetterling and Camelia Esmaili.
Just released: Episode no26 with Cristina Ljungberg founder of Firestorm Foundation, a non-profit initiative based in Stockholm. They focus on highlighting female and nonbinary artists and fostering a more inclusive art world. The operations involve acquiring works for an iconic collection of artistry.Key figures in modern and contemporary art art part of the Firestorm collection, including groundbreaking artists like: Louise Bonnet, Louise Bourgeois, Arvida Byström, Ann Böttcher, Lena Cronqvist, Cecilia Edefalk, Marie-Louise Ekman, Dame Tracey Emin, Marisol Escobar, Leyla Faye, Edith Hammar, Katrine Helmersson, Sigrid Hjertén, Josefina Holmlund, Tove Jansson, Gittan Jönsson, Barbara Kruger, Lotte Laserstein, Martina Müntzing, Cindy Sherman, Monica Sjöö, Ylva Snöfrid, Paloma Varga Weisz, Ambera Wellmann, Ulla Wiggen, Kennedy Yanko, Lynette Yiadom-Boakye, Hilma af Klint, and Barbro Östlihn. With this as a base, collaborative efforts around research, publications, exhibitions, and artist conversations are established, with institutions such as Moderna Museet, Guggenheim, the Swedish Institute in Paris, and the Stockholm School of Economics.
Consulting: Beyond individual services, we’ve partnered with leading cultural institutions to craft marketing and business development strategies that merge innovation and tradition. From consulting with museums to collaborating with galleries, we’re shaping the future of art in Scandinavia and beyond. We are particularly strong on supporting with digital communications, including social media management and longer term growth strategies.
Art Advisory Services: Our bespoke advisory services have helped private collectors navigate the art market. From building collections to providing insights on trends, we’ve positioned ourselves as trusted guides in the journey of art ownership and appreciation. We have also been moderating talks throughout the year, for example at CHART art fair in Copenhagen.
Commentary: We regularly comment on the art world in articles, blog posts and curated trend research papers.
I recently read an article in The Arts Newspaper about artist Josh Kline’s criticism of social media and just felt I had to do a personal commentary. Josh Kline’s exhibition Social Media critiques online platforms, portraying them as harbingers of artistic commodification, reduced quality, and the erasure of privacy. While these concerns reflect valid challenges, I would argue that social media, when viewed through a different lens, has been a profoundly positive force for the art world, democratizing access, amplifying voices, and fostering new creative forms. Here's a personal commentary on the above article: In Defense of Social Media as a Force for Good in Art.
A Vision for the Future
As we prepare for 2025, we’re setting even more ambitious goals:
Curated Exhibitions: Early 2025, we’re launching 'The Art Bystander Presents' our curated art dealership, a pop-up initiative in collaboration with leading international galleries and advisors, designed to showcase emerging and established talents while offering collectors unique and thoughtfully curated works. This venture reflects our dedication to creating opportunities for artists and collectors to connect in meaningful ways. Stay tuned for more info coming soon!
Introducing new content formats, including video series and live discussions, to bring our audience even closer to the art world.
Deepening our collaborations with cultural institutions to foster diversity and innovation across the sector.
This vision is rooted in a single idea: that art has the power to connect, inspire, and transform. Through The Art Bystander, we aim to make that power accessible to everyone.
A Heartfelt Thank You
None of this would have been possible without you. Whether you’ve listened to our podcast, attended an event, sought our advisory services, or engaged with us on social media, you’re an integral part of this journey. Your passion for art fuels everything we do, and we’re excited to continue growing with you in the years ahead.
Thank you for being part of this incredible community. Here’s to celebrating art, connection, and creativity—together.
Warm regards,
Roland-Philippe Kretzschmar
Founder, The Art Bystander
In Defense of Social Media as a Force for Good in Art
I recently read an article in The Arts Newspaper about artist Josh Kline’s criticism of social media and just felt I had to do a personal commentary.
Josh Kline’s exhibition Social Media critiques online platforms, portraying them as harbingers of artistic commodification, reduced quality, and the erasure of privacy. While these concerns reflect valid challenges, I would argue that social media, when viewed through a different lens, has been a profoundly positive force for the art world, democratizing access, amplifying voices, and fostering new creative forms.
Josh Kline, Professional Default Swaps, 2024. 3D-printed sculptures in acrylic-based photopolymer resin; steel, low-iron tempered glass, plywood, custom tinted polyurethane paint, tinted acrylic enamel paint, UV protective coating, and museum wax, 37 1/2 x 50 x 30 inches. © Josh Kline. Courtesy the artist and Lisson Gallery.
Democratization of the Art World
Social media has revolutionized the accessibility of art. Once, the art world was a gated community, dominated by institutional gatekeepers, exclusive galleries, and insiders. Today, platforms like Instagram, TikTok, and even Twitter have dismantled many of these barriers. Artists from diverse backgrounds, geographies, and socio-economic contexts can now share their work with a global audience. This democratization empowers creatives who may not have had the resources or connections to break into the traditional art world.
Consider the impact of artists like Yayoi Kusama or Olafur Eliasson, whose works have achieved mass engagement and recognition in part due to social media. Platforms allow audiences to not just see art but to engage with it, turning once-passive spectators into active participants. This interaction is not the "dumbing down" of art but a reframing of how we experience it.
Expanding the Concept of Art
Social media is also reshaping what we consider art. Digital art, AR filters, memes, and even viral TikToks are now part of the cultural conversation. This diversification of mediums fosters innovation and breaks away from the rigid hierarchies of “high art.” Artists are creating works designed specifically for digital consumption, challenging traditional notions of materiality and permanence.
Rather than cheapening art, this evolution underscores its adaptability and resilience. Far from being "divorced from meaning," digital-first works often confront contemporary issues—climate change, social justice, or the pandemic—directly in the spaces where these conversations are happening.
The New Patronage
Kline critiques the celebrification of artists and the self-promotion required on social media, calling it “self-trafficking.” But in many ways, social media has simply modernized the age-old relationship between artist and audience. Historically, artists relied on wealthy patrons or royal courts for survival. Today, artists connect directly with their patrons—whether through likes, shares, crowdfunding, or merchandise sales—creating more autonomous forms of support.
Social media enables niche audiences to sustain niche creators, bypassing the art market’s traditional reliance on a handful of mega-collectors. This direct relationship fosters a sense of community, empowering artists to retain creative control while cultivating sustainable careers.
Challenging Institutions and Amplifying Marginalized Voices
Social media has also been a critical tool for challenging entrenched power dynamics within the art world. Movements like #MeToo and #DecolonizeTheMuseum have gained traction thanks to the amplification power of social platforms. Artists and activists use these tools to hold institutions accountable, question cultural narratives, and demand representation.
Marginalized voices—queer artists, Indigenous creators, and artists of color—have found unprecedented visibility online. These platforms allow for self-representation, bypassing curatorial filters that often reflect entrenched biases.
The Artist as a Brand
Yes, social media asks artists to brand themselves—but is this inherently bad? Branding doesn’t have to mean selling out. It can be an act of self-definition, a way to assert control over one’s narrative in an increasingly crowded cultural space. Artists have always balanced their creative and professional lives; social media simply shifts how this balance is navigated.
Moreover, the “celebrification” of artists is not without precedent. Picasso was a celebrity. Warhol leaned into fame. Kusama, whose social media fame rivals her institutional recognition, uses her visibility to reinforce her art’s themes of infinity and connection. The difference today is that artists have more control over their celebrity personas than ever before.
A Tool, Not a Threat
Social media is not inherently good or bad—it’s a tool. Its value depends on how it’s used. Kline may find Instagram disheartening, but for many artists, it’s an essential lifeline. It fosters collaboration, sparks creativity, and provides opportunities unimaginable in previous decades. If anything, the challenge for artists is not to reject social media but to use it more mindfully—to create connections rather than comparisons, to inspire rather than imitate.
Far from destroying the art world, social media is reshaping it. It is empowering artists, democratizing access, and expanding the boundaries of creative expression. Art is not being "dumbed down"; it is evolving—becoming more inclusive, more participatory, and more dynamic than ever. Instead of mourning the change, we should embrace it as the natural progression of a living, breathing cultural ecosystem.
State of UK Visual Artists: Earnings and Challenges
A recent survey titled "UK Visual Artists: A Survey of Earnings and Contracts" unveils a stark economic reality for visual artists, shedding light on income disparities, career sustainability, and the barriers faced by creators in the sector. Commissioned by DACS and conducted by CREATe, the study highlights the financial instability and systemic inequities prevalent in the field.
Key Findings
Income Inequality and Decline:
Median self-employed earnings for visual artists are £12,500 annually—64.2% below the UK national median wage and 47.5% below minimum wage.
Between 2010 and 2023, real-term median incomes dropped by 48.8%, reflecting a shrinking financial base for visual artists.
Demographic Disparities:
Women visual artists earn 40% less than men, and disabled artists face a 70% pay gap compared to their non-disabled peers.
Ethnic diversity remains low; Black and Asian artists are underrepresented compared to the broader UK workforce.
Over half of the artists surveyed come from privileged socio-economic backgrounds, hinting at the profession's reliance on financial safety nets.
Unstable Earnings:
Over 80% of respondents describe their income as unstable or very unstable, with many relying on supplemental household income or taking non-creative work to sustain themselves.
Contractual Challenges:
Despite low negotiation rates (only 30% of artists attempt to negotiate), 79.4% report success in altering contract terms. However, 42.5% lack confidence in receiving full payments for royalties and residuals.
Impact of Brexit and AI:
56.5% report reduced demand for their services post-Brexit, with rising expenses and stricter visa requirements being significant hurdles.
Emerging technologies like generative AI pose additional threats to artistic labor, risking displacement.
Social Media and Monetization:
Platforms like Instagram are essential tools, with 19.4% of artists’ income originating from digital channels. However, 13% face restrictions, often related to content guidelines, which hinder their earning potential.
Implications and Recommendations
This report underscores the precarious state of the visual arts in the UK, with declining earnings, unequal opportunities, and economic reliance on external support systems. Addressing these challenges requires systemic changes, including:
Policy Reforms: Implement measures to address gender and disability pay gaps, and introduce grants or subsidies to support underrepresented demographics.
Contractual Education: Equip artists with tools and training to negotiate fairer contracts and assert their rights effectively.
Sector-Specific Initiatives: Tackle the effects of Brexit and AI by creating pathways for international collaborations and protecting artistic labor through copyright laws.
Enhanced Monetization Support: Foster greater understanding and support for social media monetization to diversify income streams.
The report paints a sobering picture but also offers a foundation for stakeholders to advocate for the systemic transformation of the UK’s visual arts sector.
Marketing Trends in the Cultural, Creative, and Arts Sector: Insights for 2025
As we look toward 2025, the cultural, creative, and arts sectors continue to evolve in response to societal, technological, and environmental shifts. Below, we explore key marketing trends that are shaping how institutions, galleries, and creators engage with their audiences.
Guggenheim NY
1. Integration of AI and Automation
Artificial Intelligence (AI) and automation are revolutionizing marketing workflows in the arts sector. By combining human creativity with advanced technology, organizations are enhancing efficiency and innovation.
Applications:
AI-powered tools for trend forecasting and personalized marketing campaigns.
Automation to streamline administrative tasks, allowing more focus on creative endeavors.
AI empowers marketers to deliver more targeted and relevant experiences, fostering stronger connections with audiences.
2. Rise of the Creator Economy
The creator economy continues to transform the way brands interact with their audiences. Creators with niche followings build tight-knit communities and establish trust, making them valuable partners in storytelling and audience engagement.
How it’s applied:
Collaborating with creators to produce authentic content that resonates with specific audience segments.
Moving beyond traditional influencer marketing to form deeper partnerships rooted in shared values.
This trend fosters meaningful relationships and long-term brand loyalty.
3. Sustainability and Eco-Consciousness
Sustainability remains at the forefront of marketing strategies, reflecting growing audience concerns about environmental impact.
What’s effective:
Highlighting eco-friendly practices, such as sustainable materials or carbon-neutral events.
Partnering with artists who explore environmental themes in their work.
Institutions that embrace sustainability not only align with consumer values but also enhance their reputations as forward-thinking organizations.
4. Cross-Generational Content
The idea that content is age-specific is rapidly becoming outdated. Platforms like TikTok showcase creators of all ages, indicating a shift toward inclusive content strategies that appeal to diverse demographics.
Strategic shifts:
Engaging creators across generations to broaden audience reach.
Blending traditional and modern elements in campaigns to resonate with both older and younger audiences.
Cross-generational content demonstrates inclusivity and bridges gaps between diverse audience segments.
5. Immersive Art Experiences
Art is evolving from static displays to immersive, interactive experiences.
Innovations:
Digital installations that invite audience participation.
AR and VR technologies that transform how people engage with art.
These experiences meet the growing demand for participatory art and expand accessibility, especially for global audiences.
6. Cultural Mashups and Global Influences
Globalization and cultural exchange are inspiring creative expressions that blend diverse traditions and styles.
What’s happening:
Artists are drawing from a range of cultural influences to create unique works that celebrate diversity.
Cross-cultural collaborations in fashion, music, and visual arts.
These mashups reflect a world that is more connected than ever and appeal to audiences seeking fresh and dynamic perspectives.
7. AI-Driven Personalization
AI technology is driving hyper-personalized marketing, enabling organizations to better understand and engage their audiences.
Approaches:
Using AI to analyze consumer behavior and deliver tailored content.
Creating personalized recommendations for events, exhibitions, and programs.
This level of personalization enhances customer satisfaction and fosters deeper connections.
8. Integration of Blockchain Technology
Blockchain technology is revolutionizing trust and transparency in the art world.
Applications:
Tracking provenance and authenticity of artworks to reduce fraud.
Facilitating fractional ownership of high-value pieces, making art investment more accessible.
By leveraging blockchain, institutions can create more secure and trustworthy experiences for collectors and patrons.
Conclusion
The cultural, creative, and arts sectors are embracing innovative marketing strategies that prioritize technology, sustainability, and inclusivity. By staying ahead of these trends, institutions and creators can engage diverse audiences, foster authentic connections, and thrive in a rapidly evolving landscape.
Contact us if you need help in the above mentioned areas, since we have extensive knowledge and experience.
How to Collect Art - The Book
Magnus Resch
I find Magnus Resch's "How to Collect Art" to be an invaluable resource for both emerging and seasoned collectors.
‘A refreshingly honest insider's guide to collecting.’ – The Art Newspaper
Resch, a distinguished art-market economist and Yale University professor, offers a comprehensive exploration of the art market, providing readers with practical advice on building and expanding their art collections.
‘The definitive guide to the art market and collecting in the 21st century.’ – Paper Mag
The book addresses key questions such as investment choices, starting points, gallery navigation, art fair access, art sales, and pricing evaluation. Featuring contributions from prominent art world figures, "How to Collect Art" offers diverse perspectives on art collecting, making it a valuable resource for anyone interested in navigating the complexities of the art market.
'Resch conveys complex concepts and variables with a thoughtful and accessible voice amplified by a deep well of research and knowledge while eschewing jargon and insider arrogance.' – Forbes
Available in paperback and Kindle editions, this book is a must-read for aspiring and experienced collectors alike.
Luxury Market 2024: Growth, Crisis, and Adapting to New Consumer Demands
In 2024, the luxury market is at a pivotal moment, with global sales expected to reach €1.6 trillion by year’s end despite headwinds. While some brands have sustained growth, particularly in established luxury sectors, others are grappling with declines in discretionary spending and economic uncertainty in major markets. UBS and Bain & Company’s latest insights illuminate how brands are adapting to this dual reality through creative strategies that prioritize exclusive experiences, younger consumers, and omnichannel innovation.
Olafur Eliasson, 2014, Fondation Louis Vuitton
Global Luxury Landscape: Geographic Shifts and Economic Pressures
The luxury market’s performance varies significantly across regions. Japan has emerged as a shining star, seeing substantial growth thanks to a boom in luxury tourism. Visitors are flocking to Japan for a blend of cultural richness and luxury shopping, with the weakened yen amplifying Japan's appeal. UBS reports that Japan’s favorable currency environment has turned it into a shopping mecca, drawing tourists from high-spending markets, particularly the U.S., who seek a blend of high-end products and cultural experiences. Bain also notes that post-Covid "revenge travel" is fueling luxury tourism as consumers seek unique, memorable experiences after years of restricted travel.
In contrast, China’s luxury sector faces economic challenges. While previously a growth engine, China now grapples with weakened consumer confidence, a “luxury shame” effect that tempers conspicuous spending, and slower economic growth. This downturn reflects broader economic issues, including inflation and the lasting effects of Covid, which have redefined consumer priorities. The U.S. luxury market is similarly seeing more cautious spending, particularly in middle-income segments, as economic pressures and rising interest rates make luxury purchases less accessible.
Core Luxury Segments: Jewelry and Watches Shine, Fashion Faces Challenges
Luxury jewelry and watches have outperformed other categories, showing resilience in both the high-end and aspirational markets. Jewelry, in particular, has attracted consumers across demographics due to its perceived value retention. UBS notes that jewelry sales have increased among both ultra-high-net-worth individuals and aspirational buyers seeking long-term value. For some, jewelry purchases align with investment-focused mindsets amid economic volatility, making it a segment with strong future potential.
However, fashion, especially ready-to-wear, has encountered more turbulence. Bain highlights a deceleration in sales growth for apparel as younger consumers increasingly seek secondhand or rental options, reflecting both budget constraints and a desire for sustainable consumption. While fast fashion has continued to grow, luxury brands are being pushed to consider how they will attract younger generations whose tastes lean towards minimalism, sustainability, and utility.
The Rise of Experiential Luxury: A New Definition of Value
Experiential luxury has transformed the industry by shifting consumer focus from products alone to immersive brand interactions. UBS and Bain both report a rise in demand for high-value experiences—exclusive events, personal travel, culinary tours, and private exhibitions—that allow brands to deepen their relationships with top clients. Bain calls this shift part of the “experience economy,” where brands are moving beyond products to create memory-rich encounters that resonate emotionally.
This trend is most evident in sectors like hospitality and private aviation. Private yacht charters, exclusive travel packages, and luxury dining experiences are increasingly viewed as essential to luxury consumers. With Gen X and Baby Boomer high-net-worth individuals leading this demand, brands are aligning their offerings with this shift, creating bespoke, once-in-a-lifetime experiences that maintain exclusivity and cater to personalized preferences. As Bain notes, “Today’s luxury customer isn’t just purchasing a product; they’re buying a unique experience, one that tells a story they want to be part of.”
Capturing the Next Generation: Strategies for Gen Z and Millennials
Gen Z and Millennial consumers present a unique challenge to luxury brands as they redefine the meaning of luxury. Financially constrained by economic pressures, younger consumers are selective about where and how they spend on luxury items. Bain reports a growing interest among these generations in “small luxuries” such as fragrances, high-end beauty products, and accessories—items that offer a taste of luxury at a more accessible price point.
To reach younger audiences, brands are leaning into digital and experiential marketing channels, from interactive social media campaigns to collaborations with popular sports and gaming brands. Bain notes that partnerships in sports like Formula 1, padel, and the Paris 2024 Olympics are gaining traction as a way to reach Gen Z, particularly as these consumers are drawn to brand affiliations that represent active, lifestyle-driven values. UBS also emphasizes that younger consumers expect a seamless online experience that mirrors the luxury and personalization of in-store shopping, driving brands to invest in digital innovations like AR experiences, exclusive online-only collections, and interactive virtual events.
In addition, sustainability remains a crucial factor in winning over younger consumers. UBS’s research shows that these generations favor brands committed to environmental responsibility, prompting luxury companies to incorporate sustainable practices into their production lines. From eco-friendly sourcing to transparent supply chains, brands that actively demonstrate environmental consciousness are better positioned to capture the loyalty of Gen Z and Millennials.
The Challenge of E-commerce and Digital Transformation in Luxury
As digital channels continue to transform retail, luxury brands face the challenge of creating online experiences that uphold the exclusivity and refinement associated with in-store shopping. E-commerce in the luxury space has skyrocketed, particularly post-Covid, but brands are finding that maintaining an elite, personalized feel in online environments is no small task. Bain underscores the importance of hybrid retail strategies, where digital and physical touchpoints converge to create cohesive consumer journeys.
Omnichannel initiatives are helping to bridge the gap between online convenience and the premium feel of in-store experiences. Brands are leveraging advanced CRM tools, virtual fittings, live streaming from flagship stores, and personalized mobile apps to mimic the high-touch service that luxury consumers expect. UBS points out that luxury brands with strong digital presence and a seamless customer journey are experiencing higher retention rates among digitally savvy younger consumers.
Moreover, the rise of Web3 and metaverse platforms has introduced new opportunities for brand engagement, particularly with younger consumers. From virtual stores and NFT collectibles to metaverse-based fashion shows, luxury brands are testing immersive digital experiences to appeal to an audience increasingly comfortable in virtual spaces. Brands such as Gucci, Balenciaga, and Louis Vuitton are at the forefront of this trend, experimenting with innovative digital engagements that mirror the allure of their physical counterparts.
Resilience Through Agility and Human-Centric Strategies
UBS and Bain agree that agility is key to navigating the volatile luxury landscape. Luxury brands are encouraged to balance financial optimization with strategic investments in consumer loyalty programs, digital transformation, and sustainable initiatives. Bain advises brands to focus on stock optimization and adaptable pricing models to manage economic pressures without compromising brand integrity. UBS highlights that the resilience of luxury brands depends on building human-centric connections that transcend economic cycles. Purpose-driven initiatives that resonate with consumers’ personal values—be it sustainability, inclusivity, or heritage—are likely to strengthen brand loyalty.
Brands such as Hermès and Chanel have maintained relevance by upholding values that extend beyond commercial goals, appealing to consumers who seek more than just products. The reports indicate that luxury consumers, particularly post-pandemic, desire authenticity, transparency, and brands with a story. UBS suggests that luxury companies focusing on loyalty programs, purpose-led campaigns, and tailored consumer experiences will be better positioned to weather economic instability.
Conclusion: Redefining Luxury in a Transformative Era
In 2024, luxury brands are balancing growth and crisis, harnessing innovation and agility to thrive in an unpredictable market. By catering to both ultra-wealthy and aspirational consumers, brands are reimagining the luxury experience, not just as a status symbol but as a personal journey. As UBS and Bain suggest, the brands that successfully adapt to these shifts will be those that embrace human-centric strategies, deliver digital excellence, and resonate authentically with diverse generations of consumers.
As we look ahead, luxury is not only about enduring high quality but about building meaningful, experience-rich relationships with customers. This paradigm shift opens up new opportunities for brands to stay relevant, innovative, and resilient in a market shaped by constant evolution. The luxury landscape of 2024 is a testament to the industry’s ability to adapt, transform, and redefine value for a new era of consumers.
The Art Market in 2024: Key Insights from the Art Basel & UBS Survey of Global Collecting
As the art world navigates a shifting economic landscape, the recently published Art Basel & UBS Survey of Global Collecting 2024 offers a revealing look at the trends shaping high-net-worth individual (HNWI) collectors' behavior and the broader art market. From the increasing interest in emerging artists to the evolving role of digital platforms, the report outlines key factors driving art collecting in 2024.
A More Cautious Market
One of the standout findings is the art market's contraction in 2023. Total sales fell by 4% to $65 billion, with a noticeable slowdown at the high end of the market. The number of top-tier, high-value auction sales has diminished, contributing to a more subdued market performance overall. Despite this, certain segments, such as younger and emerging artists, continue to show resilience and growth, indicating a shift in buyer preferences.
The Role of High-Net-Worth Collectors
HNWI collectors remain vital to the art market's dynamics, even as their spending patterns have evolved. The survey reveals that while average expenditure dropped by 32% to $363,905 in 2023, the overall number of transactions remained steady. Median expenditure figures, less influenced by the ultra-high end of the market, only saw a slight decline. Importantly, Mainland Chinese collectors continue to be significant players, maintaining the highest median spending of any region in both 2023 and the first half of 2024.
Generational Shifts in Collecting
The report underscores a shift in taste across generations. Millennials, who had previously driven significant growth, saw a marked decrease in their spending in 2023, down 50%. Meanwhile, Gen X collectors emerged as the most active, with their spending levels surpassing other age groups. Interestingly, younger collectors increasingly favor emerging artists, with over 52% of HNWI expenditure in 2023 and 2024 going toward works by artists early in their careers.
Women Artists and Representation
A notable highlight is the growing presence of female artists in HNWI collections. In 2024, 44% of artworks in these collections were by women—up from 33% in 2018. This surge reflects a broader trend in the market as collectors seek to diversify their portfolios and champion underrepresented voices. HNWIs spending over $10 million in 2024 devoted an impressive 52% of their expenditure to works by female artists.
The Future of Art Fairs and Digital Channels
As the pandemic accelerated digital transformation across industries, the art market has fully embraced multichannel purchasing strategies. The 2024 survey reveals that 95% of HNWIs purchased art through a dealer, whether at a physical gallery, online, or via social media platforms. Art fairs remain a critical venue for discovery, with 41% of collectors buying at fairs in the first half of 2024.
Looking ahead to 2025, collectors plan to increase their attendance at art events, signaling optimism for continued growth in art fair and gallery attendance. However, preferences for in-person transactions remain strong, particularly among Art Basel’s VIP collectors, who emphasize confidentiality and the tactile experience of viewing art in person.
Conclusion
The Art Basel & UBS Survey of Global Collecting 2024 highlights a resilient yet evolving art market. Collectors are adapting to global economic challenges while showing a growing interest in emerging talent and female artists. With technology playing an increasingly significant role in transactions, the art world is poised for further transformation as both seasoned and new collectors continue to shape its future.
For more insights, check out the full report from Art Basel and UBS.
Investing in Art: Insights for 2024 and Beyond
As the art world continues to evolve, it’s clear that investing in art remains a dynamic and compelling opportunity for collectors and investors alike. The global art market in 2024 offers a more cautious outlook compared to recent years, but for those with a keen eye on long-term returns, the potential remains significant. In this article, we’ll focus on the most current data and predictions from 2024 and look ahead to 2025 and beyond.
Tracey Emin, I wasnt weeping - I was crying like I was insane, Unique drawing
The State of the Art Market in 2024
The art market in 2024 is marked by mixed signals. While certain segments have experienced a downturn, others have shown resilience. Art Basel and UBS estimate that the global art market will reach around $67.8 billion in 2024, a modest improvement from the previous year but far from the highs seen in the post-pandemic boom. This growth is largely attributed to the rise in online sales and the growing demand for mid-tier artworks, particularly in the $250,000 to $500,000 range.
The U.S. remains the largest art market, but China is quickly catching up. U.S. market share stands at 42%, but growth has slowed by 10% this year. China, now the second-largest market, has seen a 9% rise in sales in 2024, driven by an increasing appetite for contemporary art and emerging artists.
Key Sectors: Prints and Editions, and Digital Art
The prints and editions sector continues to gain attention in 2024. Previously overshadowed by higher-value works, prints and editions now account for nearly half of the lots sold in auctions. For investors, this sector offers a more accessible entry point into the art market, with rising financial returns as demand for these works grows. In 2024, dealers expect this segment to expand further as affordability remains a key driver for new and younger collectors.
Online art sales, another major trend, are continuing their upward trajectory. According to reports, digital art sales are predicted to increase by 22% by the end of 2024, as more buyers grow comfortable with purchasing high-value works through online platforms. This trend is especially important for mid-range collectors, providing more opportunities to engage with art globally.
Predictions for 2025: What to Expect
Looking ahead to 2025, experts predict that the art market will stabilize, with more gradual growth following the volatility of recent years. According to forecasts, the market may expand by another 5-7% by 2025, with much of this growth coming from younger artists and collectors. The rise of NextGen artists (those under 45 years old) is expected to continue, as younger generations of collectors gravitate towards contemporary works that reflect current societal trends and cultural values.
At the same time, blue-chip works and traditional fine art will remain strong, particularly as a hedge against inflation. Art’s tangible nature continues to make it an appealing asset class in times of economic uncertainty. As inflation persists into 2025, investors are increasingly looking at art, alongside gold and real estate, as a store of value.
In terms of geographical markets, China is expected to see continued growth, further closing the gap with the U.S. A strong recovery in auction sales, paired with growing demand for works by both international and local artists, makes China one of the key markets to watch in 2025.
Conclusion: Navigating the Art Market in 2024 and Beyond
For those looking to invest in art, 2024 offers both opportunities and challenges. While auction sales for top-tier works may have slowed, other segments like online sales and prints and editions are thriving. Investors should take a balanced approach, considering both the aesthetic and financial aspects of their acquisitions, and diversifying across different sectors.
Looking ahead to 2025, the market is expected to stabilize, with continued interest in contemporary and emerging artists, particularly among younger collectors. By keeping an eye on market trends and leveraging expert advice, investors can navigate the art world and find opportunities for both passion and profit.
References:
Art Basel & UBS Art Market Report 2024
London Art Fair and ArtTactic 2024 Predictions
Expert Market Research Art Market Report 2024-2032
The Rise of Abstract Art: Market Trends, Key Artists, and Investment Potential
Abstract art has become a dominant force in the art world over the past few years, overtaking figurative art in both popularity and market value. Auction houses in 2023 and 2024 have seen record-breaking sales for abstract works, with both well-established and emerging artists capturing the attention of collectors. This article explores the data behind the rise of abstract art, key players driving the market, and the trends shaping the future of the genre.
Abstraktes Bild by Gerhard Richter, sold for $46.3 million in May 2024.
Abstract Art’s Market Growth in 2023-2024
According to many reports, abstract art represented a substantial portion of contemporary art sales, seeing over a 30% rise in total auction sales from the previous year. Collectors are increasingly drawn to the genre's emotional depth and the flexibility of interpretation that abstract pieces provide. The report forecasts that abstract art sales will continue to grow by 15% annually, driven by high demand from both Western and Asian markets.
Moreover, abstract art currently accounts for a large percentage of the top-performing auction categories. Collectors from North America, Europe, and Asia are fueling this trend, with a clear preference for abstract works that push boundaries both conceptually and materially.
Key Auction Sales: Record-Setting Prices in Abstract Art
The last two years have been monumental years for abstract art at auction, with prices soaring for both historical and contemporary works. Here are some examples (non-exhaustive) record-setting sales that have grabbed attention:
Gerhard Richter set a new auction record with his painting Abstraktes Bild, which sold for $46.3 million at Christie’s in May 2024.
Jadé Fadojutimi, an emerging British artist whose vibrant, abstract canvases have captivated collectors, achieved a career milestone when her piece Myths of Pleasure sold for $4 million at Phillips in 2023. Fadojutimi's rising star shows the increasing value of young abstract artists in today’s market.
Sam Gilliam, a pioneering figure in the abstract art world, saw his draped canvas work Carousel reach $6.5 million at Sotheby’s in 2023. Gilliam's works, which play with texture and color, are experiencing a resurgence in value.
Lee Ufan, a prominent minimalist and abstract artist, had his painting From Point sell for $10.4 million at Christie’s Hong Kong, making him one of the top abstract artists in the Asian market.
These record-breaking sales highlight not only the historical significance of abstract art but also the growing demand for diverse approaches to abstraction.
Some Leading Abstract Artists of 2023-2024
Several artists have emerged as key players in the abstract art scene, driving both critical acclaim and high market value. Here are some of the leading figures shaping the future of abstract art:
Julie Mehretu – Known for her intricate, multi-layered abstract works that explore architecture and geography, Mehretu’s pieces have been highly sought after by collectors. Her auction prices regularly exceed $5 million, placing her among the top contemporary abstract artists.
Rashid Johnson – Johnson’s practice, blending abstraction with personal and cultural narratives, has captured the attention of the global market. His Untitled Anxious Audience series has seen increasing interest, with several works selling for over $3 million at auction.
Hilma af Klint – Though her work is historical, af Klint’s significance in abstract art has only been recently recognized. Her retrospective at the Guggenheim Museum in 2024 sparked renewed interest, pushing her auction prices upwards. Her work now fetches prices around $2 million.
Ellen Gallagher – Gallagher’s abstract compositions, which often explore themes of race and identity, are commanding attention in the contemporary art scene. She has seen her auction prices increase dramatically, with recent sales reaching $2.5 million.
Tomm El-Saieh – A rising star in the abstract art world, El-Saieh’s intricate, abstract compositions have garnered significant interest. His works are now selling in the range of $1-2 million at auction, reflecting his growing influence.
Emerging Trends in Abstract Art
Several key trends have emerged within the abstract art scene, influencing both its aesthetics and its market trajectory:
Bold Color and Emotional Expression – Artists are increasingly using vibrant colors and gestural brushstrokes to evoke emotion, leading to a rise in the popularity of works that emphasize spontaneity and raw emotion.
Sustainability in Materials – Artists are turning toward eco-friendly materials and practices, which has begun to resonate with eco-conscious collectors. This trend is particularly evident in emerging abstract artists using recycled materials in their works.
Cultural Fusion – Globalization has allowed for a fusion of motifs and aesthetics from various cultures. Artists like Tomm El-Saieh and Lee Ufan have gained recognition by incorporating diverse influences into their abstract compositions, appealing to international collectors.
Investment Outlook for 2025 and Beyond
Abstract art is expected to see continued growth through 2025. Auction houses like Christie’s and Sotheby’s are adjusting estimates upward, with abstract works predicted to remain a strong investment. The rise of digital platforms and fractional ownership models is also expanding access to high-value abstract works for a broader range of investors.
The abstract art market's flexibility—its capacity for innovation, emotional impact, and appeal across cultures—ensures its resilience. As demand continues to grow, both established and emerging artists will continue to push the boundaries of abstraction, making it a prime sector for long-term art investment.
References:
UBS Art Market Report 2024
Art Basel Global Market Report 2024
Sotheby’s Auction House Annual Review 2023
Christie’s Auction Trends Report 2024
Artprice – Global Auction Results for Abstract Art 2023
Artsy – Top Emerging Abstract Artists to Watch in 2024
Navigating the Art Market: An Analysis of Primary and Secondary Markets with a Look to the Future
It all begins with an idea.
The global art market, an intricate web of primary and secondary sales channels, reflects broader economic trends, cultural shifts, and technological advancements. This analysis delves deeper into the dynamics of both markets, drawing on recent data to paint a picture of where the art world stands and where it might be headed. By Roland-Philippe Kretzschmar.
Willem de Kooning, Untitled IV, 1982, oil on canvas, 70" x 80" (177.8 cm x 203.2 cm) © 2019 The Willem de Kooning Foundation / Artists Rights Society (ARS), New York
Primary Market: Growth Amidst Transformation
The primary market, where works are sold directly by artists or galleries for the first time, serves as the foundation of the art world. Traditionally, this market has been characterized by its role in launching the careers of emerging artists, setting initial price points, and establishing reputational benchmarks. However, the market is undergoing significant changes driven by several key trends:
Emerging Artists and Small Galleries: The lower end of the market is showing resilience, particularly for smaller galleries. According to the 2024 UBS report, galleries with turnovers under $500,000 experienced an 11% increase in sales(Art Basel). This trend is vital as it signals robust demand for emerging artists and more affordable art, reflecting a shift towards more democratized access within the art world.
Digital Expansion and E-Commerce: The digital transformation continues to be a major force in the primary market. Online sales grew by 7% in 2023, accounting for $11.8 billion, or 18% of the market (Art Basel). This growth is not just a temporary pandemic-era phenomenon but represents a maturation of online platforms as viable sales channels. Mid-to-large galleries are increasingly integrating digital strategies, with nearly half of the dealers surveyed expecting online sales to grow in 2024 (Artsy). This trend underscores the importance of digital literacy for artists and galleries alike as the art market becomes more intertwined with technology.
Geopolitical and Economic Influences: The primary market is not immune to broader economic challenges. High inflation, rising interest rates, and global conflicts, such as the war in Ukraine, have constrained market growth (Art Basel). However, these pressures also create opportunities for investors seeking tangible assets, which could sustain interest in art as an investment vehicle.
Secondary Market: Volatility and Strategic Shifts
The secondary market, encompassing resales through auctions, private sales, and galleries, is often seen as the barometer of an artist’s established value. This market is typically more volatile than the primary market, with prices fluctuating based on demand, scarcity, and the artist's market reputation. In 2023, the secondary market exhibited several important trends:
Auction Market Fluctuations: Public auction sales saw a notable decline of 7% in 2023, driven by thinning sales at the top end (Art Basel). This drop followed a record-breaking 2022, highlighting the volatility of the high-end market where single sales can dramatically shift market dynamics. However, private sales at auction houses increased slightly, suggesting a strategic shift towards more discreet transactions in uncertain economic times (Art Daily).
Global Shifts in Market Leadership: A significant development in the secondary market was China surpassing the UK to become the second-largest art market globally (Art Basel). China's 9% growth in art sales to $12.2 billion was driven by a strong resurgence in the auction sector post-pandemic. This shift reflects China's growing influence in the global art market, with implications for where future market power may reside. Conversely, the UK’s market contracted by 8%, impacted by post-Brexit economic challenges and a reduction in high-value sales (Artsy, Art Basel).
Challenges for Dealers and Auction Houses: Higher operational costs, including logistics and rent, have created additional pressures for both dealers and auction houses. These expenses, combined with a cautious buyer base, have led to slower sales growth, especially among top-tier dealers (Art Basel). However, smaller galleries have fared better, indicating a shift in collector preferences towards emerging artists and more accessible price points.
Looking Ahead: Future Trends and Considerations
As the art market evolves, several key trends are expected to shape its future:
Sustained Digital Growth: The digital art market is likely to continue expanding, driven by innovations in blockchain technology and NFTs. These technologies not only enable new forms of art but also offer more transparent and decentralized trading platforms. As collectors become more comfortable with digital transactions, the integration of online and offline experiences will become more seamless.
Globalization and Market Shifts: The continued rise of China as a major art market, coupled with the relative decline of the UK, suggests a shift in the global art landscape. This trend could lead to more diverse artistic representation and a reconfiguration of global art hubs, with increased activity in Asia and other emerging markets.
Economic Uncertainty and Market Resilience: While the art market has shown resilience, it remains sensitive to macroeconomic factors. High inflation, geopolitical tensions, and shifts in global wealth distribution will continue to influence both the primary and secondary markets. Art as an asset class may see increased interest as a hedge against economic instability, particularly in high-end and blue-chip segments.
Inclusivity and Diversity: There is growing awareness and demand for greater diversity and representation in the art market. Female artists, for example, have seen increased visibility, though there is still progress to be made towards achieving parity (Artsy). Future growth in the market will likely depend on its ability to embrace a broader range of voices and perspectives.
Conclusion
The art market is in a state of dynamic transformation, shaped by technological innovation, shifting economic power, and evolving collector preferences. Both the primary and secondary markets are adapting to new realities, from the rise of digital sales to the global reconfiguration of market leadership. As these trends continue to unfold, stakeholders across the art world must remain agile and forward-thinking, ensuring they are well-positioned to navigate the complexities of this ever-changing landscape.