What are the young and wealthy in Asia collecting?

• During the first half of 2023, the median expenditure on art and antiques for millennials and Gen Zers was $59,785 and $56,000, respectively. In contrast, during the full year, the median expenditure on art and antiques for millennials and Gen Zers was $61,820 and $65,000, respectively.
• The online art market is predicted to reach $17.76 billion by 2030, signaling a significant shift in the art world towards digital platforms.
• Younger art collectors are being attracted by auction houses increasing their investments in digital spaces.

International auction houses have identified wealthy, young collectors in Asia as a crucial clientele, with demand for art being driven by this demographic, particularly through online channels.

Art purchases have seen a significant increase among Gen Zers and millennials, despite being relatively new to the market.

In the first half of 2023, high-net-worth millennials in Asia spent a median of $59,785 on art and antiques, while Gen Zers spent $56,000, compared to $61,820 and $65,000, respectively, for the entire 2022, according to the Art Basel & UBS Survey of Global Collecting 2023.

Christie's stated that Asia is a significant influence on millennial purchases worldwide.

At Christie's Hong Kong 2023 Autumn Auctions, the top contributing region by value for millennials was Mainland China, with Hong Kong and Singapore following closely behind, a spokesperson informed CNBC.

In the first half of 2023, collectors from China had the highest median expenditure of $241,000, followed by Singapore at $38,000 and Taiwan at $31,000. Additionally, Chinese patrons were the largest spenders globally, according to the report.

In recent years, young Asian collectors have been purchasing more from top-tier international auction houses such as Sotheby's and Phillips.

In the first half of 2023, millennials accounted for nearly 40% of Christie's buyers in Asia Pacific and 20% in the Americas, Europe, and the Middle East, according to the spokesperson. Additionally, a report from the auction house revealed a 65% increase in new Gen Z buyers in 2023.

Nearly a third of global buyers and 40% of Asian buyers at Phillips in 2022 were millennials, according to the company's latest annual report.

The percentage of younger collectors participating in bidding activity at Sotheby's increased from 6% in 2018 to 30% in the first half of 2023. According to the auction house, millennials and Gen X, who are between the ages of 44 and 59, are classified as "younger collectors."

In 2023, Taiwan and South Korea made "flourishing contributions" to the art market, according to the Christie's representative, who noted "significant activity from millennials across Asia."

What are they collecting?

The purchasing preferences of younger buyers differ from those of older generations when it comes to art.

According to a report by Art Basel & UBS, last year, millennials spent the most on sculptures, installations, photography and film or video art, while Gen Zers preferred digital art and prints.

Young buyers are also drawn to surrealist landscapes that depict spiritual spaces, according to Erin Remington, director of sales and curation at Saatchi Art.

A study by Artsy found that 64% of younger buyers aged 18 to 36 prioritize having emerging artists in their collection, compared to 43% of older buyers.

According to Artsy's 2023 Art Collector Insights, only 11% of younger collectors prioritize purchasing from blue-chip artists, compared to 23% of older buyers.

In Asia, millennial buyers are collecting both contemporary and classical Asian Art, "reflecting a desire to connect with their roots and culture," said the representative at Christie's.

According to Christie's, 40% of the new buyers who purchased Chinese ceramics, paintings, and works of art during the 2023 Hong Kong Autumn Auctions were millennials.

Online art auctions

Online art sales have become a permanent fixture, even as physical auction numbers have largely recovered to their pre-pandemic levels.

According to a report by Grand View Research, the online art market is projected to reach $17.76 billion by 2030, up from $9.72 billion in 2020.

In 2023, the number of online art auctions increased as high-net-worth collectors became more selective about physical art events and reduced their visits to live auctions, according to a report by Art Basel & UBS.

After the pandemic, there was a significant change in the art world towards digital platforms, as stated by Francis Belin, the president of Asia Pacific at Christie's, in an interview with CNBC's "Squawk Box Asia."

Christie's reported that 80% of bids in the first half of 2023 were placed online, compared to 45% in 2019, pre-pandemic levels.

Belin stated that the pandemic has made digital more prominent in the arts and transactions, with collectors now feeling comfortable bidding up to 40 million Hong Kong dollars ($5.12 million) in online auctions.

According to a report by Christie's, handbags, watches, and prints made by applying ink on engraved wood or stone and pressing them onto paper are the preferred artworks of Gen Z collectors who typically purchase art from online listings.

Christie's is increasing investments in digital platforms to attract younger buyers who are more tech-savvy and globally connected, the company stated.

The auction house's livestreams on WeChat reached a record high of 60 million views in 2023, according to the representative.

Belin stated that Christie's has seen an increase in millennial and younger collectors purchasing items, which has allowed the company to engage more with its digital innovations.