Online sales of art and antiques reached a record high last year even though the total global sales were down by 22 percent to US$50.1 billion (HK$391 billion).

Art Basel and UBS have published the fifth Art Basel and UBS Global Art Market Report by surveying 2,569 high-net-worth collectors, across 10 markets: the United States, United Kingdom, France, Germany, Italy, Hong Kong, Taiwan, Singapore, Mexico, and for the first time, mainland China.

The report finds that the global sales of art and antiques were estimated at US$50.1 billion in 2020, lower by 22 percent, from 2019, but still above the 2009 recession low when sales fell to US$39.5 billion.

The US market has retained its leading position, making up 42 percent of global sales. Greater China and the UK are on par at 20 percent. However, Greater China has overtaken the US to become the largest public auction market, with a share of 36 percent of sales by value.

Collectors in Hong Kong, mainland China, and Taiwan have bought more at local than international galleries last year, buying on average from five local galleries and four overseas galleries. Overall, the share of local galleries that Hong Kong collectors bought from has also increased by 11 percent year-on-year.

The survey also finds that Hong Kong collectors have had the lowest importance ratings attached to financial motivations of all markets as in 2019, which could indicate a continued shift in the focus of collectors to more aesthetic, social, and cultural factors.

Adrian Zuercher, head global asset allocation at UBS Global Wealth Management Chief Investment Office says, Greater China has shown strong resilience even during the pandemic and regained its position as the second-largest art market on a par with the UK.

He also indicates strong collector loyalty to local galleries. A large majority of Chinese collectors are optimistic about the art market over the coming decade.

Despite the contraction of sales, aggregate online sales reached a record high of US$12.4 billion, doubling in value from 2019. The share accounted for online sales also expanded from 9 percent in 2019 to 25 percent in 2020, and notably the first time the share of e-commerce in the art market has exceeded that of general retail.

Two-thirds of collectors surveyed felt the coronavirus disease pandemic had increased their interest in collecting. The report predicts that HNW collectors will be active in 2021.

Meanwhile, social media has continued to be a key channel used by the art market, while about one-third of collectors purchased art using Instagram. Despite the high number of events being canceled, 41 percent of collectors reported that they made a purchase at an art fair in 2020, while 45 percent reported making one through an art fair's online viewing room, of which about 90 percent of all HNW collectors surveyed visited a gallery, or art fair online, viewing room.

However, the majority prefer to attend a physical exhibition.

At the same time, millennial HNW collectors have become the highest spenders, with 30 percent having spent over US$1 million, almost twice as the boomers (ages 57 to 75).

But, the share of boomers spending in the US$1 million plus range was the highest in Hong Kong and mainland China compared with all other markets where millennials and Gen X (ages 41 to 56) collectors dominated at the same price level.

Clare McAndrew, author of the report as well as the founder of Arts Economics believes that the art market is placed to struggle with the realities of the pandemic as it is populated by mainly small businesses that rely on discretionary purchasing, travel and personal contact.

She says the crisis has provided the impetus for change and restructuring, the most fundamental shift being the rollout of digital strategies and online sales.

Noah Horowitz, director Americas of Art Basel, agrees that last year also marked a transformative period of innovation, restructuring, and new consumer behaviors, especially online.

Online collectors redefine global art market