The art market seems like the most unpredictable space in the world. Investing in artwork is no new phenomenon, but how does one place bets on something so inconsistent without risking everything? You might be surprised to see how much the art market resembles a living organism: trends that appear out of nowhere are typically either a long time coming or just iterations and new editions of previous trends.
As the year 2023 unfolds, you might be curious about which trends to watch. Maybe you are planning on investing, or maybe you just want to stay updated about the state of the market. Either way, you will find this article useful.
NFT
One cannot write about art market trends and not mention NFTs. Art in the form of non-fungible tokens has existed for some time. We have witnessed the many controversies around this new format and watched it go through many ups and downs. NFT artwork was sold for dozens of millions of dollars and then abruptly fell in value, along with the decreasing cryptocurrency prices. Either way, NFTs are here to stay — we can tell that by looking at major art institutions that organize their own NFT sales and exhibitions.
Online and metaverse auctions
It is impossible to deny the impact that the global Covid-19 pandemic has had on the art world. Today, most auction houses that want to stay afloat have an online version of their sales. However, current-day art businesses go far beyond simple online bidding. Metaverse has been entering the stage as a new exciting way of creating, selling, and buying artwork. The most notable example of a major institution fully embracing this new technological advancement is Sotheby’s, an auction giant that has created its own NFT marketplace. The experience of purchasing art on a website differs from that in the Metaverse version of Sotheby’s. You enter a virtual space, an exact copy of the real-life auction house building. With such huge players in the industry, one can see this area of the art world potentially developing even further.
Activist art
Nowadays, art is not only a status symbol or a pretty picture to hang on your wall. It is also a statement and a tool for change. A piece stating your opinion might become a great addition to your collection. Seasoned collectors show by example that now is the time to invest in artwork that explores social injustice, political conflicts, identity crises, and climate change. It is no secret that art can evoke strong emotions and force us to contemplate old biases and prejudices. Buying art from politically active artists allows them to continue creating pieces that touch hearts and change minds.
Abstract art and surrealism
Seeing an increase in surrealist and abstract work was definitely an interesting development. We can already see renowned museums and art festivals suddenly opening exhibitions showcasing works by modern and contemporary surrealist and abstract artists whose art is being sold at record prices at auctions. But these art styles are by no means new, which once again shows that all trends are cyclical and tend to return every now and then.
Young artists
For the longest time, everyone said that investing in emerging artists is a big risk. However, that is definitely not the case today. What is referred to as the ultra-contemporary art market is currently generating obscene amounts of revenue. More and more auction houses and galleries are choosing to focus on young (under 40) but nonetheless promising and talented artists managing to sell their works for prices that were only previously reserved for pieces by established and world-class masters. In opposition to “blue-chip” artists, a new term, “red-chip art,” was coined to represent the influx of youngsters to the art scene.
Sustainability
Sustainability and eco-consciousness are something that has penetrated every single aspect of the art industry. With the effects that climate change and global warming have on the world becoming more and more apparent, a surprising number of businesses and individuals have made attempts to change their approach. Art logistics companies, which play a huge role in the circulation and distribution of art, are increasingly opting for more “green” options when it comes to packaging materials, storage, and transportation methods.
Collectors are also starting to apply sustainable practices when adding new gems to their collections. Major art institutions report that many art collectors make a conscious effort of limiting their carbon footprint by choosing to shop online instead of traveling to auctions and fairs. Whether these changes are simply done for publicity’s sake or to ward off climate activists is yet to be seen, but the apparent trend for sustainability is not going anywhere any time soon.
Why care about trends?
When we analyze the current situation in the market, we learn about the conditions in which those trends were formed and how to predict future big trends. If you want to be able to make accurate predictions, you need to follow the news and pay attention to details. With time, you will learn how to identify patterns that will help you make conclusions based on logic and observations, and that is a great skill to have even in your everyday life. And if you develop an interest in investing in art or even becoming an artist yourself, it is always good to know where to look for promising niches.
Market trends do not just appear out of thin air. Instead, they always reflect the reality in which we exist. For example, in a time when social unrest, wars, and political conflicts have polarized the world, it is not at all surprising to see artwork that touches upon serious issues growing in value. After all, people have always liked things they can relate to on a personal level.
