The European Fine Art Fair: How Young Collectors are Reshaping Strategy
With the rise of a new collector base, the increasing demand for Contemporary works of art is reshaping how art fairs operate. The European Fine Art Fair (TEFAF) is no exception; as an art fair that historically serves a traditional market, the increase in young collectors globally is influencing which works are ultimately shown and how these works are displayed. As young collectors continue to reshape the art world, here is how and why art fairs such as TEFAF are adjusting their strategy.
Young collectors have become increasingly important in the art world. Auction houses are competing to dominate a shift in taste by offering new categories such as Collectibles and Ultra-Contemporary art. For example, action sales of Ultra-Contemporary art increased by over 300% from 2019 to 2021, making it the fastest-growing sector of art within auction sales [1]. Sotheby’s introduced “The Now” in November of 2021, a new evening sale focusing on art “of our time”. The sale aimed to provide “a masterpiece context for well-established and newly canonised artists” [2]. The Now set records for nine artists, such as Adrian Ghenie, Matthew Wong and Anna Weyant, all culminating in a USD $72.9 million 23-lot sale [2].
Ultra-Contemporary Sales Worldwide (USD Millions). Image. Courtesy Artnet Intelligence Report Spring 2022.
Tastemakers on the supply side have already noticed the rapid increase in the importance of Ultra-Contemporary art. So who is driving the buy side? Largely, two geographies are driving this: the United States and China. Taking place over the COVID-19 pandemic, the U.S. and China jointly generated USD $600 million in Ultra-Contemporary sales.
In 2021 alone, both countries’ total sales of Ultra-Contemporary surpassed all worldwide sales of the sector in any previous year on record [1]. Alongside this, reporting shows that young collectors are growing rapidly in both geographies and that these collectors have a focus on Contemporary art [3]. Worldwide, the largest growth in collectors by age group was seen in under 40s, increasing to 19% of the market share from 2019 to 2020 [4]. Within this age group, Contemporary art had the largest share, with under 40s accounting for 21% of collectors in the sector [4].
Top Regional Markets for Sales of Ultra-Contemporary Art (USD Millions). Image. Courtesy Artnet Intelligence Report Spring 2022.
With a growing base of young collectors who have a specific interest in the Contemporary sector, the art world is experiencing a shift that requires a new strategy. This has been reflected in auction houses and is beginning to impact art fairs. Some art fairs are relatively “traditional” – they focus on selling to older collectors who tend to purchase Old Masters or museum-quality pieces. The king of traditional art fairs is TEFAF, known to the world as the “pre-eminent major fair for museum-quality historical artworks, furniture and objects” [5].
Since 2020, TEFAF has struggled significantly. It was dubbed the art world’s first COVID-19 super spreader event in 2020, and in the following year, it was hit by a high-profile robbery. However, these instances are not the largest challenges TEFAF is facing. Collecting taste has made a clear jump towards Contemporary art, causing other traditional art fairs, such as Masterpiece and TEFAF New York, to close in recent years.
If traditional fairs are struggling, how can they stay relevant? There are mainly two paths: freshen up your booths and sell post-20th-century art. In 2023, TEFAF has certainly done both. When exploring TEFAF this year, almost every booth in the Antique and Ancient Art sections was heavily embellished to draw in buyers. Sure, the art may not appeal to a new collecting base, but the storytelling aspect may be compelling enough to attract new clients. These booths provided an aspect of exploration and discovery through various themes and designs; booths were decorated to mimic everything from Versailles to ancient temples, encouraging viewers to capture the perfect “Instagram moment”.
David Owens, Kamel Mennour’s booth at TEFAF Maastricht 2023. Photo. Courtesy of the artists and Pari Mennour.
Ambrose Naumann Fine Art’s booth at TEFAF Maastricht 2023. Photo. Courtesy of ANFA Inc.
Nathan Monroe-Yavneh, Paris's Galerie Steinitz at TEFAF Maastricht 2023. Photo. Courtesy of Nathan Monroe-Yavneh.
There was an obvious change at TEFAF in booth design and the inclusion of more Modern and Contemporary galleries. TEFAF advertises on their own website that about half of all booths are “modern and contemporary art, photography, jewellery, 20th-century design, and works on paper” [6]. Due to their fresher subjects and lower price points, these categories may be more appealing to younger collectors and those entering the collecting arena for the first time. Additionally, this year TEFAF doubled their emerging gallery section, Showcase.
Not only is TEFAF showcasing more established Modern and Contemporary galleries – such as White Cube, Landau Fine Art, Lisson Gallery and Tina Kim Gallery – it is providing more opportunities to underknown galleries. The same new collector base interested in purchasing Contemporary art is also interested in supporting the art world as a whole, which means purchasing works from emerging galleries that tend to showcase younger, growing artists that often explore social and political messaging. Showcase highlighted galleries that do just that, such as Frédérick Mouraux Gallery, which supports artists “of our time” and highlights works that explore social messaging [7].
Carmen Mariscal’s 2021 show at Frédérick Mouraux Gallery. Photo. Courtesy of Frédérick Mouraux Gallery.
Although TEFAF has made a valiant effort to appeal to younger collectors, it is too soon to tell whether these changes will be enough to solidify TEFAF’s standing in the future. The Old Master’s market has not been on par with the art market as a whole over the past twenty years.
According to Art Market Research, the average price of an Old Master’s work has provided an annual return of 3% over the past 20 years, while the entire art market provided an annual return of 9% over the same period [8]. Meaning the art market as a whole is performing three times better than the Old Masters sector.
So, if Old Masters is falling out of favour both from a cultural and taste perspective due to the emergence of a new collector base and is showing lagging returns compared to the entire art market, traditional art fairs like TEFAF are going to need to continue to pivot in the years to come to remain significant. Traditional art fairs face an uncertain future if they fail to adjust to new tastes.
Art Market Research data All Art Market versus Old Masters Sector over the past 20 years. Chart. Courtesy of the author.
TEFAF 2023 has shown that art fairs are reading market trends as a clear sign to shift strategy. The rise of a new collector base interested in Contemporary art is driving this, pushing TEFAF in particular to incorporate Modern and Contemporary galleries into almost half of their entire booth selection. TEFAF has also doubled their Showcase section, highlighting emerging galleries. Although TEFAF has made significant changes to cater to new collectors, Old Masters and Ancient art still remain almost half of their entire booth selection. As Old Masters has proven to lag behind the entire art market, and as young collectors continue to reshape the art world, traditional art fairs like TEFAF will need to continue to listen to this new collector base and implement quick, strategic changes to remain relevant in an ever-changing art market.
Bibliography:
[1] Art News and Morgan Stanley. Artnet Intelligence Report 2021. May 9, 2022.
[2] “The Now Evening Auction 2022.” Sotheby’s. Accessed March 14, 2022.
[3] Larry’s List. The Next Generation Art Collectors. 2021.
[4] Art Basel and UBS. The Art Basel and UBS Global Art Market Report 2020. 2020.
[5] Reyburn, Scott. “The Past’s Treasures Are Not in Vogue, Except at This Art Fair.” The New York Times. March 10, 2023.
[6] “TEFAF Maastricht Concludes.” About. The European Fine Art Fair. Accessed March 14, 2023.
[7] “About Frédérick Mouraux Gallery.” Contact. Frédérick Mouraux Gallery. Accessed March 14, 2023.
[8] “All Art Market Index” and “Old Masters 100 Index”. Art Market Research. Accessed March 14, 2023.
Megan Brown
Art Market Co-Editor, MADE IN BED