To keep artists and collectors apprised of developments in the global art market, we continue our ongoing series with our annual update that coincides with the conclusion of the European Fine Art Fair (TEFAF) held every March in Maastricht.

Held from March 11-16, the fair drew about 75,000 visitors and featured over 35,000 works created over the past 7,000 years with works ranging from Classical Antiquities to Old Masters to Impressionism to Modernism to Contemporary.  As noted in our last blog, consistent with the growing dominance of the U.S. market, TEFAF will be expanding to hold fairs in NYC this fall (Antiquities to 20^th century) and next spring (modern and contemporary).

One of the highlights of the fair is the TEFAF Art Symposium which includes the annual presentation by Dr. Clare McAndrew of the TEFAF Art Market Report, which was the subject of Video #4 in our Know2collect library, and is one of the key industry market reports regarding global art sales.  In 2015, the TEFAF report touted record global art sales totaling £51 billion with most of the art sales in 2014 taking place in the US (39%), China (22%) and the UK (22%).

This year, the TEFAF Report concludes that global sales revenues in 2015 dropped approximately 7% and the number of art sales contracted by 2% (decreasing to 38.1 million).  While the China art market continued to decline with a dramatic 23% decline in sales and a decrease in market share from 22% in 2014 to 19% in 2015, and the U.K. market also declined by 9% for 21% of market share, the US market share increased further with a 4% increase over 2014.  As explained by Alexander Forbes in his Artsy Editorial (3/11/16), “the U.S. market is arguably at its most dominant global position in history.”

As further observed by Forbes in his summary of the 2016 TEFAF Report, due to a few record-breaking auction sales in 2015 on works such as Modigliani’s Nu Couché (sold at Christie’s for $170 MM), the top end of the market (sales over $1MM) experienced the strongest growth with 57% of all auction sales being derived in that segment which grew by 19% over 2014. While contemporary and post-war art accounted for 46% (down from 48% in 2014), and modern art continued to place second at 30% (down from 28% in 2014), Old Masters auction sales increased by 4%, but the values declined by 33% which Forbes notes “can likely be mapped to a continued generational trend away from that sector.”

Notably, online art sales increased by 7% to $4.7B and will be the subject of our next blog where we consider the growing importance of the online art market.

Shannon Robinson is the curator and chairperson of the national biennial exhibitions Windows to the Divine (Nov. 17-Dec. 13, 2016) and the national symposiums sponsored by Collectors for Connoisseurship (Nov. 2015 at Denver Art Museum and Oct. NYC 2017).  More about Shannon…

With the end of Armory Arts Week in New York (Feb. 28-March 6^th), we thought it would be a good time to follow-up on our blog last year about the future of international art fairs by examining the rising importance of New York as a hub for such fairs.

As explained in Video #6 in our Know2collect library, while a handful of art fairs existed as long ago as the 15^th century, we are now witnessing an exponential growth in their popularity with more than 200 being held in this century around the globe annually.

In New York, the art fair season is kicked off every March with two major international fairs known as “The Art Show” at the Park Avenue Armory and the “Armory Show” at Piers 92 & 94.  Sponsored by the Art Dealer’s Association of America and in its 28^th year, the former features works ranging from Old Masters to Contemporary from 70 member American galleries and the latter, founded in 1994, features modern and contemporary art from over 200 galleries around the globe.  Significant satellite fairs have also sprung up during Armory Arts Week such as Independent New York, Pulse New York, and Spring/Break Art Show.  And, in May each year, NYC again sizzles with even more major annual art fairs, including NADA (New Art Dealer’s Alliance) (May 14-17) and Frieze (May 5-8).

And while it is not surprising that the Big Apple has been and continues to be a mecca for globe-trotting art enthusiasts, what is interesting is that the success of such fairs have prompted other important international art fairs abroad to expand their fairs by adding NY as an additional location.

As reported by Brian Boucher of artnet news, TEFAF (The European Fine Arts Fair), one of the oldest international art fairs has announced that it is coming to NYC.  Following the lead of other prestigious international fairs like Frieze London which opened 2 new Frieze fairs (Frieze Masters and Frieze NY) in NYC in 2012, TEFAF will no longer be limited to its annual March fair in Maastricht, Netherlands, but will add two new fairs in NYC: October, 2016 (featuring antiquities to the 20th century) and Spring of 2017 (modern and contemporary art).

According to Boucher, while such plans for expansion carry inherent risks, it may be that the competitive global market is now compelling art fairs to have more convenient locations that are regional and closer to buyers.  Indeed, this development mirrors the phenomenon being observed with mega galleries like Gagosian, Pace and Hauser & Wirth which we also covered in Video #5 and which Boucher points out are opening more and more international locations.

Time will tell whether the proliferation of even more international art fairs will dilute the quality and focus of such fairs and whether the collector will really be better served.

Shannon Robinson is the curator and chairperson of the national biennial exhibitions Windows to the Divine (Nov. 17-Dec. 13, 2016) and the national symposiums sponsored by Collectors for Connoisseurship (Nov. 2015 at Denver Art Museum and Oct. 2017).  More about Shannon…

With the conclusion of Art Basel 2015 (June 18-21), it is an opportune time to discuss the role of international art fairs in the global art market.  Founded in 1970 and touted as the premier fair for Modern and contemporary art, Art Basel exhibited the works of over 4,000 artists from 284 galleries from 33 countries and attracted 98,000 visitors.

While international art fairs date back to the 15^th century, they have only recently become a major player in the art world with now more than 200 being held each year. According to the TEFAF Report, in 2014, the top 22 fairs attracted over a million visitors. The U.S. held the most fairs with 39% of the total followed by Europe at 38% and Asia at 12%.  More importantly, as reported in the TEFAF Report, art fairs generated at least €9.8B in sales and constituted the second largest sales channel after in-gallery sales.

The popularity of art fairs is explained by three of its major benefits: (1) collectors can view works from the top dealers in the world under one roof and have the convenience of comparison shopping; (2) works are vetted by a committee of experts for quality and authenticity; and (3) social events are held concurrently for collectors that reinforce the exciting arts “lifestyle”.

Two of the most well known international fairs are Art Basel and TEFAF (The European Fine Art Fair). Held every year in the Netherlands, TEFAF exhibits a broad range of works from Antiquities to Old Masters to Modern and Contemporary Art.

And while the number of art fairs seems to be spreading across the globe, they are increasingly becoming the subject of scathing reviews by critics such as Adam Lindemann who explains that art fairs used to provide mutual benefits to dealers and collectors since they provided a global stage to showcase the best works of both known and unknown artists.  Lindemann complains that the “freshness of new discoveries has mostly evaporated because there are so many international fairs in a single year” and the galleries now pre-sell all the best art and bring the lesser works to the fairs.

Moreover, the phenomenon of overproduction has become of increasing concern.  As Georgina Adam explains in her book, “Big Bucks: The Explosion of the Art Market in the 21^st Century¹, with so many art fairs around the world, dealers and their artists have had to scramble to maintain sufficient inventory, causing many artists to either outsource their production or increase production via an increasing use of multiples; photographs, videos, prints and editions.

This response by artists and dealers has lead to what many critics call “art fair art” or “zombie art” which Jason Frago of the Guardian describes as “safe, predictable abstract painting…that repeats postwar innovations in purely decorative fashion.”

Despite such criticisms, with the increasing globalization of art and the mobility of collectors, art fairs are likely to continue to dominate the arts scene at least for the near future.

Upcoming international art fairs include: Art Basel, Miami Beach (December 3-6, 2015); Art Basel, Hong Kong (March 24-26, 2016); TEFAF, Maastricht (March 11-20, 2016); Frieze London (October 14-17, 2015) and Frieze NY (May 5-8, 2016); The ADAA Art Show & Armory Shows in NYC (March 2-6, 2016).

¹Adam, Georgina (2014), Big Bucks:  The Explosion of the Art Market in the 21^st Century (ISBN 978-1-84822-159-8) (p. 114), UK:  Lund Humphries.

Shannon Robinson is the curator and chairperson of the national exhibition Windows to the Divine and the national plein air event Altitude and Attitude. More about Shannon…