Clare McAndrew’s report for TEFAF came out today and caused a bit of a press frenzy as it recorded for the first time that China had edged out the UK in to become the second largest auction market with a 23% share of the global art auction business. McAndrew also concludes that Europe’s legislation giving living artists a share of auction proceeds encourages works of €40,000 or more to be sold in the US or Asia. The other top line findings from the report are:
“After a worse than estimated contraction in the second half of 2009, the global art and antiques market fell by 33% from 2008 values to a total of €28.3 billion. This fall represented a contraction of 41% from the market’s peak in 2007, one of the biggest declines in the art market since its previous recession in the early 1990s.
“In 2010 there were some significant signs of recovery, especially in China and the US, and the global market as a whole rose by 52% to €43 billion. The volume of transactions rose more moderately during 2010 (by 13% year-on-year) and much of the market’s rise in value was due to an increase in the number of high value works being sold.”
Key findings of the report include:
● The most significant development in recent years has been the phenomenal growth of the art market in China, which has nearly doubled in value since 2009.
● China became the world’s second largest art market in 2010 with a global share of 23%, overtaking the UK for the first time. Auction sales in China totalled almost €6 billion in 2010.
● The US continued to dominate the international art and antiques market with a share of 34%.
● The European Union’s overall share of the global market in 2010 was 37%, a decline of 16% from its high point in 2003.
● The UK remains Europe’s largest art market with 59% of the EU total but its global share was 22% in 2010, 5% down since 2006. France is second in Europe with 16% of the EU’s sales and 6% of the world total.
● The number of High Net Worth Individuals in the Asia-Pacific region now equals Europe for the first time in history and their wealth is greater.
● The global contemporary art market has recovered from its slump in 2009 when sales fell by 66% but the resurgence has been “significantly higher” in the US and China than in Europe.
● Dealers generated 51% of sales in the global art market compared to 49% by auction houses and on average 30% of dealers’ business is done at art fairs. The traditional on-street gallery is in decline.