Art Collecting and the Great Wealth Transfer
As the art market evolves amid challenging times, its appeal endures, supported by stable spending patterns. The motivations and behaviors of collectors are also shifting, influenced by the ongoing Great Wealth Transfer.
Art collecting motivated by passion and emerging artists
Despite the changes the wealth transfer may bring, key collector behaviors remain consistent. A love for art drives many to visit art fairs, collect works from living, emerging artists and buy from new galleries.
The Art Basel and UBS Survey of Global Collecting 2024 by Arts Economics demonstrated the strong willingness of high-net-worth individuals (HNWIs) to buy from new galleries in 2023 and 2024, with 88% of those purchasing from dealers buying from at least one new gallery. The number of galleries HNWIs bought from increased compared to previous years, averaging 18 in 2023 and 17 so far in 2024, up from just 13 in previous research in 2019.
The share of their total expenditure on works by new and emerging artists increased by 8% in 2023/2024 to 52%, and most of the spending on top-tier artists’ works (17%) was on works by living artists. This underlines the critical role collectors play in supporting the careers of living artists at different stages of their careers.
Beneficiaries are holding onto art (if they can)
The survey highlights that many HNWIs are concerned about preserving their collections for future generations. 80% of those surveyed expressed concerns over legacy and succession, with 39% being very concerned. In fact, 43% had plans in place to pass their collections on to their children.
However, some of the fears regarding the longevity of collections over future generations may be overestimated, as many heirs are retaining the art. 91% of surveyed collectors had inherited or received art through bequests, with 72% keeping some of these works. Even with changing generational tastes, only a third of millennial and Gen Z HNWIs reported that they had sold inherited pieces due to a lack of fit with their collections.
Difference between generations
Younger collectors are often thought to favor non-traditional or digital mediums, but data tells a different story. Gen Z (along with Gen X) respondents had the highest percentage of paintings in their collections at 28%, and paintings remained the most popular medium across all generations accounting for 26% of the works held in collections in 2024. Digital art, though discussed frequently, made up just 3% of collections overall, with the highest share held by Boomers at 5%.
A thoughtful, research-based approach
Today’s collectors are more deliberate in their buying decisions. Eric Landolt Global Co-Head of Family Advisory, Art and Collecting at UBS, notes that, ‘Impulse buying by HNWIs has dropped from 10% in 2023 to just 1% in 2024, reflecting a growing trend toward research-based acquisitions. Whether seasoned or new to collecting, building a collection is a long-term craft that demands dedication and insight.’
A well-planned strategy can help ensure the passion for art continues through generations. Through UBS Art Advisory & Collecting, UBS provides UHNW clients and their family offices impartial advice and execution services across the whole lifecycle of a collection, from strategic development and governance to making an impact through cultural philanthropy and the transition of collections into the next generation. Considering these transitions, many collectors are taking a more thoughtful and strategic approach to succession planning with their collections.
As The Art Basel and UBS Survey of Global Collecting 2024 by Arts Economics reveals, passion remains the enduring force behind art collecting (a top motivator for 40% of HNWIs surveyed).
(Referenced on The Art Basel and UBS Survey of Global Collecting 2024, written by cultural economist, Dr. Clare McAndrew of Arts Economics, and based on a survey of over 3,660 collectors across 14 art markets, the survey continues the valuable research conducted over the past nine years by Art Economics and UBS.)
