Trends in the art market are changing every day. In 2021, the world economy was actively recovering from the pandemic of 2020 in many areas.
Rich people are traditionally the main buyers of art objects. The increase in their incomes during the crisis had a positive impact on the art market, which experienced a surge in demand in 2021. The good news is that with the advent of NFT, investments in art have become more accessible to mass investors.
The experts tell us which modern painting has become the most expensive in the world, what trends are prevailing in the art market in 2022, and why NFT is so popular.
The most expensive modern painting is a portrait of Marilyn Monroe
The other day, a 1964 portrait of Marilyn Monroe in the style of pop art by the famous artist Andy Warhol was sold at Christie’s auction for a record 195 M USD. Thus, the work entitled “Shot Sage Blue Marilyn” has become the most expensive in the world among modern paintings.
A series of five 40-inch portraits of Marilyn is considered a classic in the art market. They are made in the technique of silk-screen printing and, thanks to bright, unusual colors, attract the viewer’s attention. Experts call the sold portrait of Marilyn the “Mona Lisa of the 20th century” and believe that it could have been sold more expensive if not for the decline in financial markets. However, art critics note that this is not the most valuable image of the actress created by Warhol. In their opinion, earlier portraits of Monroe, such as “Gold Marilyn” or “Marilyn Diptych”, have greater historical and artistic significance.
The art market trends have recovered and attract wealthy collectors
Unlike the last financial crisis, when in 2009 the number of billionaires in the world decreased by 30% and their wealth decreased by 45%, in 2020 and 2021 the super-rich people continued to increase their capital. So, according to Forbes, in December 2021, the global number of billionaires reached 2,657 people. Collectively, they owned a fortune of 13.9 T USD. Compared to 2020, this amount has increased by 19%.
After the largest decline in 10 years in 2020, the art market recovered and grew by 29%, and total sales of art objects reached 65.1 B USD in 2021. The volume of sales also increased by 17%, and the number of transactions on the art market for the year amounted to 36.7 M USD.
According to a study by Art Basel and UBS, in 2022 53% of wealthy collectors plan to buy art objects, and another 39% are also going to sell works from their collections.
The three largest segments of the art market in 2021-22 fall on the USA, China, and Britain, which together occupy 80%. The leading position is occupied by the USA with a share of 43% of the value of all global art sales. Next comes China, which retained 20% in 2021. But in Britain, which was on par with China before the pandemic, there was a decline of 3%, which is why the country’s share in the global art market fell to 17%.
Dealers and auctions are the most popular options for buying art objects
When it comes to art objects, the value of which can reach many millions of dollars, transactions go through reputable sellers who verify the authenticity of the product and determine its value.
In 2021, dealers remained the most popular place to purchase works on the art market. After a 20% decline in sales in 2020, dealers had to rebuild and conduct more transactions in an online format. In 2021, traditional methods of work returned. Right now sellers are faced with the task of how to combine offline and online options. According to the results of last year, the sales volume of art dealers amounted to 34.7 B USD, an increase of 18% compared to 2020, but remaining below the level of 2019. Nevertheless, dealers account for most of the global art sales.
Auctions follow dealers in popularity. In 2021, the total trading volume of all auction companies amounted to 30.4 B USD, which is 45% more than in 2020 and 10% more than in 2019.
The world’s largest auctions for private auctions are Christie’s and Sotheby’s. In the last year, they have conducted private transactions for 3 B USD. The total volume of private auction sales in the world amounted to 4.1 B USD. China became the leader of public auctions in 2021 with a share of 33%. The United States and Britain are next.
NFT trends conquer the market
The NFT is a unique token that is used to acquire rights to digital objects. It is created using Ethereum, a blockchain-based on smart contracts. With the help of NFT, artists can sell works of art digitally.
The advantage of NFTs for investors is their lower price compared to traditional art objects. According to Art Basel and UBS, the median price of an art-related NFT is 9 K USD. At the same time, the demand for them from investors is growing. Thus, according to a survey by the authors of the study, 74% of art investors purchased NFT in 2021.
Another reason for the sharp popularity of NFTs was the rapid growth of their value and the possibility of quick resale, which attracted speculators. Compared to 2020, the value of NFT sales has increased a hundred times, to 2.6 B USD in 2021. The average time between the purchase and resale of an NFT is 33 days.
However, NFT has critics who note their increased speculativeness and lack of proper regulatory control on NFT platforms. It is where most transactions occur. This increases the number of frauds related to NFT, which affects both authors of works and buyers.
Popular trends in the visual arts
Fine art is mainly sold through auctions. Artists who are in the greatest demand are traditionally divided into 4 directions according to the periods of their life and creativity.
The best-selling is post-war and contemporary artists who were born after 1910. In 2021, they accounted for 77% of auction sales of fine art totaling 6.7 B USD. It is 42% more than in 2020. At the same time, the demand for works created over the past 20 years has doubled, and their total sales have reached 2.5 B USD.
Modernist artists who were born between 1875 and 1910 took second place with a 22% share of the auction market. In 2021, their sales increased by 23% compared to the previous year, reaching 2.7 B USD.
Another 15% of auction sales are Impressionists and post-Impressionists. Artists of this direction were born between 1821 and 1874. Due to the increase in the cost of canvases, their sales significantly recovered in 2021 and returned to the level of 2019 – 1.8 B USD.
The share of old masters is 8% of world auction sales. These include artists born between 1250 and 1821. European old masters are also singled out separately, which account for 4% of the total sales in this direction.
In 2021, the value of the works of all old masters increased by 21% after four years of decline. However, their total sales for the year amounted to 917 M USD. Moreover, European old masters rose by 65% over the year, to 464 M USD due to a small number of expensive lots.