Following a tumultuous start to the decade, thanks to the impact of the global pandemic, the art world felt relieved in 2022 as the year marked a return to form for the industry. Global art sales increased by 3% year on year to reach $67.8 billion, bringing the industry to a higher level than its pre-pandemic state. Several large sales hitting the block helped accelerate revenue generation, such as the $500 million+ purchase of the Paul G Allen collection last November.

With a new year now well in session, the most important art trends of the future are already beginning to materialise. The art industry is rapidly shedding its elitist image, welcoming modern technologies and becoming more inclusive. In this article, we’ll track some of the defining trends that will shape the sector as the decade progresses.

Inflation Hits the Art World

It would be remiss to look at the current trends of any global industry here in 2023 and not touch on the impact of the cost-of-living crisis and soaring inflation and interest rates in Western markets. Global economic and political uncertainty persists, particularly with a fresh batch of general elections set to take place in both the UK and the US over the following calendar year. Despite its longevity, the art world isn’t insulated from the turbulence that a shifting economic landscape brings.

One of the most dramatic impacts that inflation has had on the art market is already in full swing. Rising inflation has forced galleries to increase art prices, with 41% of the respondents in Artsy’s Art Industry Trends Report 2023 citing inflation as a reason for their higher pricing adjustments. Although businesses across most industries are remodelling their pricing strategies in 2023, galleries were nevertheless surprised at the speed with which they have had to do so.

Balance in the NFT Market

The decade so far has brought about an NFT gold rush in the art world. Non-fungible tokens have risen to soaring heights, including that incredible 2021 sale when Beeple’s Everyday: The First 5000 Days sold for $69,346,250. Not only did this sale mark the third-highest price at auction for a work by a living artist, but it also kickstarted a debate about the true value of digital artwork.

Until more recently, NFTs have typically been associated with the blockchain and crypto markets, which power everything from online crypto casino platforms to supply chain logistics. While traditional art circles initially resisted the rise of NFT art, the popularity of the market rapidly soared throughout 2022. While the market may have slowed down somewhat in 2023, the era of digital art is far from over.

In fact, most industry experts see this cooling-down period as a necessary stage towards bringing balance to the market. As Christie’s Mariolina Bassetti stated, following the auction house’s recent launch of its own virtual platform, Christie’s 3.0, NFTs “will continue to be part of our present and our future”.

The Era of Millennials

Parity is more than just a buzzword in the art industry this year, especially as we enter the era of the Millennial. New generations of art buyers will always bring new tastes and expectations to the table, and the latest wave of art buyers under 40 are increasingly seeking ultra-contemporary works created by a diverse spectrum of artists who integrate everything from cutting-edge technology to sustainable materials into their works.

The influence of Millennial buyers can also be seen in the changing purchasing models that are beginning to appear. The hybrid auction model, which blends the traditional live auction format with the convenience and accessibility of online platforms, has emerged as a response to this changing dynamic of the art market. By combining the best elements of both physical and virtual auctions, the hybrid model can enhance the auction experience and attract a wider audience of participants.

Buying Power in The Tiger Markets

Paris has overtaken London as the leading European art market in the West, and a similar story is playing out in the Tiger economies. Hong Kong has typically been the central hub for art sales, particularly in the wake of both M+ and the Hong Kong Palace Museum opening their doors. However, while the “new art scene” in the region is attracting international interest, Singapore, Shanghai, Seoul and Tokyo are now the front runners for artistic prominence.

The Importance of Trend Analysis

The art industry is an especially fluid one, in which trends can often be a driving force in dictating not just the success of artists’ careers but also the financial success of the business ecosystem. Art exists as a response to cultural, societal and economic shifts, and predicting and identifying impactful trends can provide valuable insights for artists, buyers and galleries alike. By tracking trends, the industry can keep its vibrant interplay between artistic innovation, cultural zeitgeist and economic demand.