Hiscox Online Art Trade Report 2023

• Analyst: Anders Petterson
• Pages: 44

We are delighted to announce the launch of the 10th edition of The Hiscox Online Art Trade Report 2023.

Online art and collectible sales grew 6% in 2022 generating an estimated $10.8 billion. Following two turbo-charged years of unprecedented growth, this has returned to its pre-pandemic, single digit levels.

As the market settles back into a slower, steadier pace, it is also braced for tougher economic times, with 30% of collectors planning to make fewer online purchases in the next 12 months as a result of shrinking disposable incomes. Just over a quarter (26%) of new art buyers said they were likely to buy art in 2023 (vs. 57% in 2022). This falls to 18% for younger collectors (down from 44% in 2022).

Key Findings:

• Online sales grow in 2022, but more slowly – sales are estimated to be $10.8 billion, up 6% from $10.2 billion in 2021, accounting for 15.9% of all art sales.
• A significant boost – two years of accelerated growth boosts the market’s value by around $5.4 billion.
• The impact of economic jitters – 30% of online buyers will cut back on art purchases over the coming year. Just 18% of younger online collectors plan to make a purchase in the next 12 months, which is down from 44% in 2022. A quarter (26%) of new art buyers said they were likely to buy art in the year ahead, compared to 57% in 2022.
• Online-only auction sales down – online-only auction sales at Christie’s, Sotheby’s and Phillips were down 35% (to $898 million from $1.32 billion in 2021). But more art buyers (44%) said they had bought online from traditional galleries and auction houses in the past 12 months, up from 35% the previous year.
• Fractional ownership shows potential – although only 9% of art buyers invested in fractional ownership last year, 61% said they were likely to do so over the next 12 months, rising to 78% for younger collectors.
• Few concerns about carbon footprints – 54% of online art buyers express little or no concern for the environmental impact of buying art online. Fewer than a third (32%) said they would be prepared to pay extra for a more sustainable way of buying art online.
• Trust and confidence improve – 51% of art buyers said their confidence and interest in buying art online art had increased during the pandemic.
• Consolidation more likely – 71% of the online platforms surveyed said they anticipated more M&A activity taking place in the next 12 months, compared to 64% who said the same in 2021.
• NFTs flop with traditional collectors – NFTs haven’t taken off among art buyers. One in five (20%) said they had bought an NFT, virtually unchanged from last year (19%). Even fewer (12%) are likely to buy an NFT in the coming 12 months (down from 27% in 2022).