We are now at the end of the second year of the Corona pandemic and it is time to take a look at the developments on the international art market in 2021.
After a year of global anxieties, the market – especially for contemporary artists – has made a resounding comeback. The effects of the COVID-19 pandemic are clearly visible in the statistics, but to the surprise of many, they were not negative.
The art market at the end of 2021 – Contemporary art is on the rise. Photo by Adeolu Eletu @adeolueletu, via Unsplash
Let's take digitization as the most obvious example. During the long months when galleries and auction houses worldwide had to close their doors, this process accelerated dramatically. The popularity of hybrid strategies among galleries shows that they have fully arrived in the digital and globally networked world. This is good news for many dealers and art collectors, who now benefit from easier access to artworks.
The far more remarkable news, however, lies in the dramatic growth of the contemporary art market.
Amidst the busy international art fair season, between Art Basel, Frieze, and FIAC, Artprice has published its 2021 market report . And although it only covers the first half of the year, the results are already remarkably positive. After a very disappointing 2020, contemporary art seems to have regained its appeal and is now even surpassing every other artistic period.
Sales in this segment increased by a staggering 177% compared to 2020. This equates to 102,000 works auctioned for a total of $2.7 billion between the end of 2020 and June 2021.
International art market – sales development until 2021 Source: Artprice
Contemporary art is in higher demand than ever before
Collectors and art buyers are increasingly focusing on contemporary art. This sector now accounts for almost a quarter of the total market: 23% to be precise in 2020/2021.
If we compare these figures with the beginning of the millennium, we see breathtaking growth. In just twenty years, prices have risen by 400%.
By comparison, the value of post-war works has only increased by about half as much over the same period. Artprice attributes this phenomenon to a constantly growing supply, lower prices, and, above all, increasing demand from collectors worldwide. As digitization removes geographical barriers and emerging markets gain importance, buyers are becoming younger and more numerous.
They are fueling the demand for contemporary art, which will most likely continue to rise.
According to current figures, three contemporary artists, among the biggest names in art history, are now among the top 10 artists who achieved the highest auction prices in 2021:
Art Market – Top 10 Artists 2021 Source: Artprice.com
The most sought-after artists of 2021
Nearly 102,000 contemporary artworks changed hands worldwide, a 34% increase in transactions compared to 2018/19 (pre-pandemic). This market surge is partly attributable to the enormous popularity of a few artists.
Top 3 contemporary artists by number of lots sold at auction (2020/21) Source: Artprice.com
Together, KAWS (real name: Brian Donnelly), Takashi Murakami , and Banksy nearly 5,000 annual lots and 4.7% of contemporary art transactions. They reflect the most popular art of our time: street art and manga. Their success has been further amplified by the arrival of new online buyers. These three artists share a common thread: they cover all price ranges and are extremely prolific in multiple areas.
Each of these artists sells more than 1,500 works a year through auctions, not counting their own distribution networks or those of their galleries: KAWS, Murakami and Banksy form the podium of the most sought-after artists, measured by the number of auctions.
The popularity of NFTs and Crypto Art
There is another factor that has significantly contributed to the rapid rise of contemporary art in a post-COVID world: the market launch of NFTs.
These digital works are not universally appreciated by art lovers, but they have already captured the hearts of some high-profile collectors. Selling prices for crypto art have skyrocketed throughout 2021. In fact, nine NFT works were auctioned for prices exceeding one million dollars this year.
The first in history was “Everydays: 5000 Days” by the artist Beeple, which changed hands at Christie's in March for $69.3 million (see article: An Introduction to the World of NFT Art).
The authenticity and traceability of NFTs (non-fungible tokens) are guaranteed by blockchain technology. Mr. Sundaresan, creator of one of the leading NFT investment funds (Metapurse), has set himself the goal of building the world's largest collection of NFT art. Three months before the sale of The First 5000 Days , his company Metapurse had already invested more than US$2 million in digital works by Beeple.
The new NFT influx of funds sparked great enthusiasm among auction houses. According to Christie’s, 22 million people, almost 60% of whom were under 40, registered for the auction of The First 5000 Days . Among them, some investors with well-funded crypto portfolios increased their bids.
Eager to tap into new buyer communities focused on digital art and liquidity in the crypto space, auction houses have done everything they can to include NFT works in their prestigious spring sales.
According to estimates by NonFungible, sales of NFT artworks in the first five months of 2021 totaled USD 2.5 billion (source: ArtPrice).
Owner and Managing Director of Kunstplaza . Publicist, editor, and passionate blogger in the fields of art, design, and creativity since 2011. Graduated with a degree in web design from university (2008). Further developed creative techniques through courses in freehand drawing, expressive painting, and theatre/acting. Profound knowledge of the art market gained through years of journalistic research and numerous collaborations with key players and institutions in the arts and culture sector.
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