Do you know the market size of the art industry? In a market study released in April 2023, the total global art market in 2022 was announced to be US$67.8 billion (approx. 9.2 trillion yen)*, a figure that exceeds the level before the Corona disaster in 2019. Sales at Sotheby's and Christie's, the two major art auctions, are also at record highs, and the global art market is booming, including in Asia.
The top four countries account for about 87% of the market share in such art industry. Comparing Japan with the world's top countries, there are hidden keywords for the Japanese market to still grow.
In this issue, we will introduce the reality of the art industry from a business perspective.
*From TheArt Basel and UBS Global Art Market Report
Comparison of the global and Japanese art markets: Top 4 countries account for 87% of the market share
Global Art Market Size and Share by Country
According to a large-scale research report published by Art Basel and UBS in 2023, the size of the global art market in 2022 will be US$67.8 billion (approximately 9.2 trillion yen). Over the past 10 years, the market has grown by about 10% every five years.
By country, the United States maintained its top market share of 45%, up 2% from the previous year; the United Kingdom came in second with 18%, ahead of China; China came in third with 17%; and France maintained its fourth place with 7%. These top four countries together account for 87% of the market. Compared to these countries, Japan's share of the art market currently stands at 1%.
At first glance, one might imagine that art thrives in affluent countries. However, Japan's GDP is not particularly low compared to the rest of the world, and it is a country with many wealthy people, so why is there still such a large gap compared to the rest of the world?
According to the 2021 report, 52% of art collectors are Millennials (born between 1981 and 1996) and 35% are Generation X (born between 1965 and 1980), and these two generations are the most active in art purchasing. This trend is also evident in the fact that these two generations account for half of all art purchases. There seem to be few collectors of this millennial generation in Japan...
Auctions (secondary distribution) are active in the markets of the top countries
In the U.S., which boasts the world's top market share, statistics for 2022 show US$30.2 billion. The U.S. is home to the world's two largest auction houses, Sotheby's and Christie's, and the New York auction market is the world's leading auction house in terms of sales.
The United Kingdom generates far more sales than all 27 EU countries combined. Even in the United Kingdom, a significant portion of its market is supported by an active secondary distribution market, organized by well-known auction houses.
Although China saw a 14% year-on-year drop in total sales in 2022, all eyes are on the Chinese and Hong Kong markets in 2023. Here, too, the world's largest auction houses, such as Christie's, Sotheby's, and Phillips, are building branch offices one after another, and world-class art collectors are emerging from China and Hong Kong.
Why the Japanese art market is underdeveloped compared to the rest of the world
The art industry is divided into the "primary" and "secondary" markets.
In the previous section, we looked at the overall picture of the global art market. Once you have a rough idea of the atmosphere, let's move on to a comparison between the world and Japan.
According to the 2023 report mentioned earlier, Japan's share of the global art market is 1%. This is not even close to the top-ranked U.S. market, and it is ahead of all major European countries.
Why has the Japanese art market been so sluggish?
To understand the cause, it is necessary to understand the structure of the art market, which is divided into a "primary" market and a "secondary" market.
The primary distribution market refers to "the market where artworks first appear on the market, passing from the artist to the collector. On the other hand, the secondary market refers to "the market where works purchased or owned in the primary market are resold at auction, etc., collector to collector. This two-tier structure reflects the characteristics of the art market, where everything is "one-of-a-kind" and demand tends to exceed supply.
The Importance of the Secondary Market
At first glance, the primary distribution market may appear to be the place where art is sold, but in fact, the secondary distribution market is more closely watched than the primary distribution market, and is the key to the entire market.
For example, in the U.S., which boasts a 45% share of the global market, transactions in secondary distribution account for 50% of that market. As mentioned earlier, secondary distribution is also active in the other top countries.
Artists need time to create their works, so naturally, the more popular an artist becomes, the more customers are always lining up to buy his or her work. Under such circumstances, the existence of a secondary distribution market, in which artists offer to purchase works with added value to the current owners, helps to maintain the liquidity and activity of the art market as a whole. In addition, the value of the work increases through secondary distribution, and the increased visibility of the work is of great significance to the artist as well. Secondary distribution is the key to boosting both collectors' and artists' activities.
In the Japanese art market, the secondary distribution market does not account for a large portion of transactions. Compared to Europe, the U.S., and China, where secondary distribution markets are more mature, Japanese collectors tend to keep the works they purchase, feel that auctions themselves are too expensive, and that there are few art collectors to begin with. This may also be a factor hindering the career growth of Japanese artists. In order for artists to advance internationally, it is essential that their works be traded on the secondary market, and that they be valued as assets. The art market needs to stimulate the distribution of artists' works, which should be valued in the secondary market.
Existing Auction Houses Supporting Secondary Distribution in Japan
We would like to introduce two well-known auction houses in Japan.
The first is SBI Auction, a leading Japanese auction house established in 2011 that specializes in contemporary art. Secondary works by popular young Japanese artists will often be traded at SBI. This auction house holds regular auctions about 4~5 times a year, as well as online-only events.
Shinwa Auction" is also well known. It is said to be the first full-scale auction company in Japan, and its predecessor was an art dealer exchange called Shinwakai, which was established in 1989. This auction house handles a wide range of items, including postwar art, crafts, wine, and manga, while at the same time handling contemporary art. Some transactions start at an estimated bid price of 20,000 yen, making it a very easy-to-enter auction.
To boost the Japanese art market
To increase the liquidity of the market and revitalize the market
It may be necessary to understand the role of the secondary distribution market and make it more accessible, both in the revitalization of the market and in the growth of artists' careers.
About TRiCERA's resale function
TRiCERA ART features contemporary art works from 126 countries around the world. In terms of the primary and secondary distribution mentioned earlier, TRiCERA ART plays the role of primary distribution, in which works of art are first introduced to the world.
In April 2023, we will launch a new function, the "Resale Function," which will also function as secondary distribution. (A function that allows collectors who own artworks to sell them on TRiCERA ART's online gallery.)
Request a free appraisal of your artwork
TRiCERA ART's resale function allows you to easily list your artwork for sale by taking care of the tedious work involved in selling, such as inspection and packaging, etc. We also offer a free appraisal through the official TRiCERA line, so those who are considering selling can easily find out the market price of their artwork. Please provide us with information about your artwork, and we will assess the expected bidding price based on that information.
Please feel free to contact us at any time via TRiCERA's official LINE.
Click here to see the press release about TRiCERA ART's secondary distribution "Resale Function":
https://prtimes.jp/main/html/rd/p/000000066.000043089.html
Art comes to life when it is appreciated."
TRiCERA ART's new function aims to reform the structure of the art market, which until now has been divided into primary distribution by galleries and secondary distribution by auctions. This is a new distribution method for artworks that is only possible through TRiCERA, one of the largest art marketplaces in Asia.
We hope that TRiCERA's resale function will bring many works of art to new collectors and help develop the art market. We hope that TRiCERA's resale function will help many artworks find new collectors and develop the art market.
