The Art Market Continues to Adapt to Today’s Economic and Social Climate Challenges, Yet Its Allure Remains Undiminished
Despite periods of uncertainty, spending patterns have proven stable, offering robust support to the sector. Both seasoned and new collectors drive this resilience, but their behaviours and motivations are undergoing a significant transformation influenced by one major factor – the Great Wealth Transfer.
This generational shift in wealth, as assets change hands from Baby Boomers to Millennials and Gen Z, brings inevitable adjustments. However, some enduring habits anchor the market. Many collectors are motivated by an abiding passion for art, as expressed through their visits to fairs, purchases from living and emerging artists, and patronage of new galleries. These trends underscore collectors’ essential role in nurturing artistic talent at various career stages.
A Surge of Interest In New Galleries
Recent data from The Art Basel and UBS Survey of Global Collecting 2024 highlights this commitment. A staggering 88% of high-net-worth individuals (HNWIs) who purchased art from dealers in 2023 and 2024 bought at least one piece from a new gallery. Their scope of engagement is broadening, with the average number of galleries they bought rising to 18 in 2023, compared to 13 reported in 2019. This upward trend suggests an expanded openness to experiment and an appetite for discovering fresh talent.
Additionally, collectors continue to spend more on works by new and emerging artists, capturing 52% of their art spending in 2023/2024. Even among purchases involving top-tier names, most spending focused on works by living artists, particularly emerging ones. This shift demonstrates collectors’ pivotal role in fostering contemporary art’s development and ensuring its vibrant future.
Concerns About Legacy and Preservation
With their evolving tastes, collectors are not only reshaping what art they buy but also considering how best to preserve these collections for future generations. The survey reveals that 80% of HNW respondents expressed concerns about the legacy of their collections, with 39% being particularly worried about succession planning. Encouragingly, as many as 43% have already outlined plans to transfer their collections to their children.
Yet, fears surrounding potential generational disinterest may be overestimated. An impressive 91% of surveyed collectors who had received art through inheritance or bequests retained portions of these works within their collections. This suggests a sustained appreciation for inherited art, even as generational tastes evolve. For instance, only a third of millennial and Gen Z collectors admitted to selling pieces they felt were mismatched with their collections.
Millennials and Gen Z Challenge Assumptions
Contrary to the assumption that younger collectors favour digital or unconventional mediums, current statistics suggest otherwise. Among Gen Z and Gen X collectors, paintings remain a dominant feature, comprising 28% of their holdings in 2024. Overall, paintings accounted for 26% of works in collections across all age groups. Digital art, while enjoying periodic bursts of attention, only represented 3% of total collections, with Boomers claiming the highest share at 5%.
This preference highlights a level of continuity in traditional collecting mediums across generations. Collectors remain connected to timeless forms while selectively engaging with new mediums. Digital art’s future role may expand, but for now, it plays a supporting role in broader collections rather than leading.
The Rise of Deliberate and Well-Researched Acquisitions
Another changing dynamic in art is the shift from impulsive buying to more calculated, research-driven decisions. Impulse purchases by HNWIs dropped from 10% in 2023 to just 1% in 2024. Building a meaningful art collection is less about satisfying whimsy and more about a long-term pursuit requiring dedication, insight, and strategy.
This more measured approach is apparent not only in acquisition decisions but also in how families plan for the future of their collections. Succession planning is increasingly seen as a natural extension of art ownership, ensuring the personal stories tied to these pieces remain intact for generations.
Strategic Succession Planning and Advisory Support
Navigating a collection’s lifecycle amid changing generational attitudes can be complex. Collectors are now seeking strategic approaches to ensure their legacies endure while aligning with successive generations’ aspirations. Zurani Art Advisory offers impartial advice on everything from collection governance to the philanthropic use of art and generational transitions. Its services cater to ultra-high-net-worth clients and family offices.
Through careful planning, collectors can ensure that their investments and passion for art endure and continue to inspire and shape the art world for years to come. Therefore, the intersection of thoughtful strategy and emotional attachment to art is pivotal in shaping the future.
Seek Expert Guidance for Your Collection
For collectors navigating the evolving art market or those considering their legacy, expert guidance can make a world of difference. Whether you are developing a new collection, managing inherited pieces, or planning for future generations, the right advice can help you achieve your goals. To explore how you can preserve and grow your collection, contact Zurani Art Advisory today for tailored support. Your passion for art deserves both protection and a clear path forward. For more information, call us today at + 971 58 593 5523, email contact@zurani.com, or visit our website at www.zurani.com.
THIS ARTICLE DOES NOT CONSTITUTE FINANCIAL, TAX OR LEGAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.
