This time last year, collectors were breathing a sigh of relief that 2020 was finally over. The pandemic had sprung economic and logistical challenges upon the art world that created uncertainty and made many uneasy about the market's structure and outlook.
Fast forward to December 2021: in just a two-week span at the November auctions, $2.3 billion dollars of art sold,1 up 173.9% from the previous year.2 Art Basel Miami Beach ended the year with a bang, marked by lavish parties and performances by Cardi B, Alicia Keys, and Lizzo, even amid global concerns about Covid-19’s recently identified Omicron variant. Approximately $10.7 billion dollars of art minted as non-fungible tokens (NFTs) had sold as of the third quarter of 2021.3 Dealers are now reporting a new energy in the overall art market, with a resurgence of in-person events and venues.
Meanwhile, a new comfort level of buying art online and sight-unseen is evident. Artists, museums, and dealers quickly adapted to a more digital world and managed to survive – and many even thrived – in these unprecedented times. Here are some of the biggest trends we have seen this year.
A wider range of people now have access to the world of art than ever before. Indeed, anyone with a smartphone or computer can buy art online. As such, we have seen a rapid increase in buying from a more global collecting base, with younger collectors making their presence felt.
A recent Artsy survey found 83% of the respondents said they had purchased art online. That share was even greater among "Next-Gen collectors" a subset of buyers who had started collecting in the last four years and had spent at least $10,000 on art in a given year, 91% of whom said they have bought art online.4
Kwesi Botchway, Green Sofa, 2020 Acrylic on canvas 60 1/4 x 55 in. (153 x 139.7 cm) Sold at Phillips 20th Century and Contemporary Evening Art, November 17, 2021 for $214,200 with premium. Image: courtesy of the artist
Still image from Beeple’s open-source short film FITC TORONTO FILES Image: https://www.beeple-crap.com/resources
Vincent van Gogh, Jeune homme au bleuet, 1890 Oil on canvas 16 x 12-5/8 in. (40.5 x 32 cm) Sold at Christie’s The Cox Collection: The Story of Impressionism sale, November 10, 2021 for $46,732,500. Image: CHRISTIE'S IMAGES LTD. 2022
The Linda and Harry Macklowe collection of mostly 20th century masterworks by blue-chip artists including Robert Ryman, Willem de Kooning, Cy Twombly, Andy Warhol, and many others, achieved a jaw-dropping $676 million dollars in a single evening’s guaranteed sale.
In the same auction cycle, Christie’s 20th Century sale achieved $420 million in a single evening. Andy Warhol’s portrait of Basquiat sold for over $40 million with fees, doubling its on request presale estimate of $20 million.
Phillips’ November 2021 20th Century & Contemporary Art evening and day sales totaled $172.5 million, a record for the company.
Sotheby’s reported a total of $7.3 billion in art sales in 2021. Its private sale volumes were up by one-third over 2020’s levels, with the auction house citing an influx of younger buyers and their allowing payment with cryptocurrency for certain lots.5
If 2022 is anything like 2021, we can expect the art market to grow and change further. New participants will continue entering, and different perspectives and narratives will critically influence both art-historical and art-market conversations.
In the forthcoming Citi GPS report, we will explore how new synergies are forming between galleries and auction houses, artists, and collectors and even among competing galleries. Dealers and auction houses report that the growth of private sales remains on its upward trajectory. New ways to buy art keep emerging, as the old ways persist yet adapt to a changing collector base. As the art market expands exponentially, regulation is tightening in Europe and the US. Digitalization and globalization have accelerated the pace of change, and we can anticipate further evolution of this fast-moving and dynamic art market.