The millennial revolution in the art market

The art market stands at the brink of a monumental transformation, as Millennials emerge as a dominant force in global wealth. This generational shift represents the largest transfer of capital in over 50 years, fundamentally altering how art is bought, sold, and managed.

The great wealth transfer

At the heart of this transformation lies the intergenerational transfer of wealth, which is forecast to reshape the art market for decades. The UBS Global Wealth Report 2024 projects that USD $84 trillion will change hands over the next 20 years, primarily to Millennials and Gen Z. With the average age of billionaires at 66, a substantial portion of this wealth will be transferred via art collections, with younger heirs taking the reins.

Born between 1981 and 1996, Millennials are stepping into their roles as the new patrons of the arts. According to the UBS and Art Basel Global Art Market Report 2022, Millennials accounted for 56% of high-spending collectors, outpacing both Boomers and Gen X. These young patrons approach art with a seriousness that belies their years, yet they carry a rebellious spirit that challenges the status quo.

Championing accessibility

Millenial’s digital nativity has made online platforms not just an alternative but a primary venue for art transactions. The Hiscox Online Art Trade Report 2021 notes that 80% of young collectors purchased art online, emphasising a desire for accessibility that transcends traditional gallery spaces. This trend is reshaping the market, making it more accessible to a broader spectrum of buyers. By breaking down entry barriers, online platforms offer greater liquidity, enabling collectors to acquire and sell works with unprecedented ease and speed. The digital revolution in the art market is not just a matter of convenience but a critical shift towards transparency, empowering collectors to make informed decisions in a more open and secure environment.

The COVID-19 pandemic accelerated the adoption of online sales channels. The Art Basel and UBS Global Art Market Report 2022 indicates that online art sales reached a record high of $13.3 billion in 2021, accounting for 20% of the market.

Evolving art wealth management

As Millennial collections grow, so does the need for art wealth management tailored to their values. They demand transparency, sustainability, and alignment with personal ethics. 

Millennials are integrating art into their wealth management portfolios with a sophistication that blends youthful innovation with authoritative insight. Deloitte's Art & Finance Report 2021 highlights a growing trend of using art-secured lending and fractional ownership, reflecting a savvy approach to leveraging art for financial growth while maintaining personal enjoyment.

This change marks the greatest shift of capital in half a century - reshaping the art market in profound ways. Millennials are not just new collectors; they are changing the rules of engagement. By embracing technology, valuing authenticity, and prioritising ethical considerations, they are driving a revolution toward a more dynamic and accessible art world.

Understanding and adapting to Millennial values is key. The message to art market players is clear: evolve or be left behind.

Vanessa Zingale is the Associate Director of Commercial Operations at Artscapy, learn more about Vanessa here.