Examining Art Market
Arts Economics conducted a study, examining trends and occurrences in the art market in 2013, which is published in The European Fine Art Foundation – TEFAF annual report. The study encompasses international art and antiques market, and it was written by Clare McAndrew, the Arts Economics founder. Data that was used came from various sources, from art dealers, auction houses, collectors, fairs, financial databases, art experts and other participants in the international art trade.
Below is the summary of the report, which is downloadable on the TEFAF website in full.
The High Numbers
The title information read from the report is that the global art market turnover reached €47.4 billion, which came very close to the highest record, while the numbers are advancing 8% yearly. The report itself focused on the American and Chinese art markets, but this information was extracted on the global level. The total number of transactions increased as well, but this was not the main reason for the turnover jump. The reason behind it is a significant increase in prices, rather than the number of sold pieces.
The US market made 38% of the global market value in 2013, as it was stated in the report, China participated with 24% and the UK with 20%. The European Union dropped by 3% to 32% of the total value. These numbers, however do not show that the sales in the EU have been quite constant in the past decade, with the UK having the largest portion of the sales value.
When it comes to individual success rates of particular markets, the UK market lost 2% in market share comparing to 2012, while France climbed up by 13% and Germany by 11%. Other significant national art markets in Europe were either dormant or in decline, including Spain, Italy, Sweden and Austria.
The art market has a large influence on industries closely related to arts, such as conservation and restoration for example, for which it creates jobs and revenue. The economic impact on these industries is significant, because some of them largely depend on the art market trends and could not survive on their own.
McAndrew drafted a list of key findings in the global art market, which portray the trends of 2013. These findings report that the US market increased by 25%, becoming the center of high-priced art sales. European market, on the contrary, has proved to be stagnant, dropping by 2%. Post-war and contemporary art made the largest group of the market, encompassing pieces with the highest prices of the year.
Online sales are growing, as they generated over 2.5 billion euro, which makes about 5% of the global art market.
Dealers submitted reports of creating 33% of the revenue in art fairs, while through galleries 50% of the revenue was created, which is 6% more than the previous year. The US and the UK markets imported the total of 69% of the world art import, establishing themselves once again as the main attractions of the international and local creatives. Combined, they are also the greatest exporters in the market at 65% share.
Finally, China is keeping the place of the most significant new market, because of its size and the revenue created in domestic sales, attracting more and more art investors around the globe.