®

Hiscox online art trade report 2021
PART TWOCover artwork:
Frank Walter, Four Trees and Fence, 1980 | Oil on card | 35.5 x 31.5cm | Courtesy the family of Frank Walter and Ingleby Gallery.

INTRODUCTION

1KEY FINDINGS2

ONLINE BUYING BEHAVIOUR AND SALES4

BUYERS’ MOTIVATIONS6

ONLINE ART SPENDING TRENDS

10

SOCIAL MEDIA

14

MARKET FRICTION AMONG HESITANT CONSUMERS16

NFT ART BUYER SURVEY FINDINGS 2022

20

CONCLUSION

27

METHODOLOGY

29

Hiscox online art trade report 2021 – part two Introduction
Welcome to the latest iteration of
the Hiscox online art trade report.
It feels like we are dealing withtwo very different universes in thisreport. On the one hand, there is the
traditional online art market where
physical objects are traded and thishas matured into a significant andpermanent part of the art market– it is almost business as usual. On
the other hand, there is the bonkers,
volatile and seductive world of NFTs,
largely attracting speculators rather
than art lovers. It will eventually
settle down and a new hierarchy
about which NFTs are valuable
and which aren’t will be established;currently lots want to have a flutter,even if they aren’t prepared to bet
the house on it. The traditional
online art platforms are, in themeantime, frantically playing
catch-up and trying to workout how to incorporate it
into their businesses – after
all, nobody likes to miss out
on a party.
Robert Read
Head of Art and Private Clients
Hiscox1

2

Hiscox online art trade report 2021 – part two

Key findings
THE ONLINE MARKET STILLGROWING AS PANDEMIC
EFFECT WANES
Nearly two-thirds of art buyers
surveyed have bought art orcollectibles online, an increase on
the previous two years. More thaneight out of ten existing online art
buyers have bought pieces online
in the past 12 months, up from
67% in 2020.
ART MARKET’S MOVE ONLINE
IS FOR GOOD
84% now believe the digital shift
in the art market will become
permanent, up from 51% in 2020.
SALES FORECAST TO HIT$13.5 BILLION IN 2021
Astronomical sales growth of 72%
in the first half means that, if thesame pace was maintained for the
rest of the year, overall sales would
top $13 billion for the year – a newrecord. Sales are expected to growin 2022, but at a slower rate.

THE ART AND NFT MARKETSBEGIN TO COME TOGETHER
We are likely to see an increasing
convergence between the traditionalart market and parts of the NFT
market. Over a quarter (27%) of
all art buyers surveyed said they
are likely to buy an NFT in the
coming 12 months.
NFT BUYERS MOTIVATED BY
THE MONEY, NOT THE ART
Over eight out of ten (82%) NFT
buyers said that value potential
was their most important motivation.
Nearly all (95%) of those who had
spent more than $25,000 on NFTs
in the past 12 months, said thatinvestment return was their
key motivation.

Hiscox online art trade report 2021 – part two 

Robert Longo, Study of Pandemic, 2021-2022, 2021 | Ink and charcoal on vellum | 58.7 x 53.3cm | Courtesy of the artist and Pace Gallery.

3

4

Hiscox online art trade report 2021 – part two

Online buying behaviour and sales
MORE ART BUYERS ARE
GOING ONLINE FOR THE
FIRST TIME

Have you bought art and/orcollectibles directly online througha click-and-buy or click-and-bid in
the last 12 months? (%)

Nearly two-thirds (65%) of art
buyers surveyed said they had
bought art and collectibles online
at some point, up from 59% in2020 and 43% in 2019.
Have you bought art and/or collectibles directly online througha click-and-buy or click-and-bid in the last 12 months?
(% of respondents sayng ‘yes’)

85

67

49

49

49

38

2014

2015

2016

2017

43

44

2018

2019

2020

THE MAJOR AUCTION
HOUSES SHOW HIGHDOUBLE-DIGIT ONLINESALES GROWTH IN 2021

Heritage Auctions reported$903 million in online sales
in 2021 (+79% from 2020).
Phillips saw online-only auction
sales grow by 70% last year, while
Christie’s posted 41% online-onlysales growth in 2021. Sotheby’s
online-only sales grew 22% in
2021, after phenomenal growthin 2020 (824%).

$903m

GROWTH RATESRACE INTO HIGHDOUBLE-DIGITS

Online art sales rocketed during the
pandemic, from 4.8% in 2019 to
64% in 2020. Further strong sales
growth of 72% for the first half of2021 reported by online art sales
platforms gave us projected online
sales for 2021 of $13.5 billion1.

$13.5bn

MOMENTUM IS CONTINUING
Here we have assumed thatthe second half of 2021 willgrow at the same rate as thefirst half of 2021, i.e. 72%
growth in sales. See Hiscox
Online Art Trade Report 2021
– part 1 for further details
about the methodology.

1

We have seen a significant jump in
online buying among existing online
art buyers in the past 12 months,
with 85% saying they had bought
art online in the past 12 months,
up from 67% in 2020.

Heritage Auction
online sales in 2021.

projected online sales
for 2021.

2022

Hiscox online art trade report 2021 – part two Online art sales($ million)

Online art sales ($ million)
13,590*Projected sales

7,892

2,636

3,274

3,753

4,221

2016

2017

4,636

4,819

2018

2019

1,507

2013

2014

2015

BUYER CONFIDENCE RISING

In the next 12 months, doyou think you will buy moreart and collectibles online
than in 2021? (%)

2021*

THE ART WORLD’S MOVE ONLINEIS PERMANENTOver half (53%) of online art
buyers surveyed in 2022 said
that the pandemic and the art
market’s migration online haveincreased their confidence inbuying art and collectibles online,
up from 42% in 2020. This risingconfidence is already evident inlast year’s rising online sales.
ONLINE ART SALESSTILL PREDICTEDTO GROW FURTHER
THIS YEAR2020

In 2020, half a year after the
pandemic broke out, 51% ofart buyers said they thought thechanges would become permanent.
Fast forward 18 months, and 84%
now believe the digital shift in theart market will become permanent.

In the next 12 months, do you think you will buy more art and collectibles
online than in 2021? (%)
2020
2022

39

49

53

37

13

Yes, more thanlast year

10

No, less thanlast year

About the sameas last year5

6

Hiscox online art trade report 2021 – part two

Buyers’ motivations
MORE SOCIALLY CONSCIOUS
ART BUYERS?

FINANCIAL VALUE REMAINS A
KEY MOTIVATION

In 2020, helping and supporting
the artistic community (social
impact) and supporting artists(patronage) became the second
highest motivation when buyingart (68%). This was particularly
strong among the younger
generations (under 35 years
old), where 76% said theirmain motivation for buying
art was social impact.

But art buyers are still keen to makea profit on their pieces. Most (62%)
art buyers surveyed said that value
potential and investment returns
were key motivations when buying
art in the past 12 months, slightly
higher than in 2020 (58%).

But this doesn’t seem to justhave been an outpouring ofgenerosity and solidarity towards
artists during Covid. Two-thirds(66%) of art buyers surveyed in
January 2022 said that social
impact and patronage remains
their top motivations for buying
art and collectibles, with this rising
to 74% of the under 35s. Amongthe older generation of art buyers,a third (33%) said they bought
art to support the artist and artorganisations in 2021, down from
49% in 2020. The sharp recovery
in the art market during 2021 may
well have been a factor in this. But
a majority (54%) of under-35 art
buyers said they had continued
to buy art to support artists andart organisations during 2021,
only slightly down on 2020 (59%).

Hiscox online art trade report 2021 – part two 

How important are the following
motivations when buying art
and collectibles? (respondents
answering important/very
important) (%)

How important are the following motivations when buying art andcollectibles? (respondents answering important/very important)

31
32

58

Value potential (returnon your investment)

62

36

Identity and status(it defines who I am)

33

Social impact/patronage(supporting artists,
arts organisations)68
66

How many times have you bought an art or collectible object online in thelast 12 months? (%)
70

60

How many times have youbought an art or collectible
object online in the last 12
months? (%)

2020
61

2021
2022

21

17

17
9

7
Once

ART BUYERSCONTINUE BUYINGFROM BROAD RANGE
OF ONLINE PLATFORMS

2022

93

Social aspect (being
part of a scene of
like-minded people)

ART BUYERS ARE
BUYING MORE
ONLINE IN 2021

2020

95

Emotional benefits(passion for art)

Between two
to five times

80% of online art buyers hadbought art from two or more
online platforms in the past
12 months, up slightly (76%)
from 2020.
Under-35s art buyers are buying
from more platforms. In the past 12
months, 79% said they bought from
more than two platforms, up from
68% who said the same in 2020.

15
10

4
Between six
to ten times

80%of online art buyers hadbought art from two or
more online platforms in
the past 12 months, up
slightly (76%) from 2020.

9

Ten times
or more7

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Hiscox online art trade report 2021 – part two

Buyers’ motivations (cont.)
THE ONLINEART MARKET
HAS BECOME ANENTRANCE INTO
THE ART WORLDFOR NEW ART
BUYERS, MANY
OF WHOM HAVE
NEVER VENTUREDINTO A GALLERY
OR AN AUCTION.

What types of online platforms
have you bought from? (%)

A NEW GENERATION OF ART
BUYERS HAVE ONLY BOUGHTART ONLINE
Three-in-ten (31%) young collectors
said they bought their first everartwork online, up from 14% in
2020. Nearly half (47%) of newart buyers (who started buying
art less than three years ago)also said they made their firstart purchases online, compared
to 30% in 2020. The online
art market has become an
entrance into the art world
for new art buyers, many ofwhom have never ventured
into a gallery or an auction.

ONLINE BUYERS ARE
RELATIVELY EVENLY SPREADACROSS DIFFERENT ONLINESALES PLATFORMS, BUT
AUCTION FORMAT SEEMSTO BE THE PREFERENCE
Online-only auctions are the mostpopular art buying platform, but‘bricks and clicks’ platforms, suchas those of traditional auction
houses Sotheby’s, Christie’s, Phillips
and Bonhams, have seen stronger
interest from younger buyers. Nearlya third (32%) said they had boughtfrom these, compared to 17% in
2020. This is supported by figuresfrom these auctioneers: Sotheby’s
said 44%2 of its bidders in 2021
were new to the auction house,
while half of Phillips’ buyers werenew. At Christie’s, 35%3 of all buyers
were new, with two-thirds entering
through online sales. A third of their
new buyers were millennials.

What types of online platforms have you bought from? (%)
55

Online-only
auctions

55

48

Online art
marketplaces

53

33

Bricks and clicks

35

https://www.
antiquestradegazette.com/
news/2021/sotheby-sannounces-best-ever-year-forsales-with-new-bidders-andonline-growth-a-big-boost

2

https://www.
antiquestradegazette.com/
news/2021/christie-s-saleshit-a-five-year-high-for-2021/
3

25

Online-auction
aggregators

Online search
for the arts andcollectibles market

29

19
17

2020
2022

Hiscox online art trade report 2021 – part two 

NEW BUYERS PREFER ONLINE
Whilst 19% of art buyers preferred
to buy online, 45% still preferred
the buy art in-person. However,
41% of new art buyers prefer tobuy art online, compared to 24%
who said they preferred buying
art in-person in a physical space.
Which experience
did you prefer?
(% of all art buyers)

Which experience did you prefer? (% of all art buyers)
OnlineNo preference
Physical space
54
48

50

48
45

37

37

38

46

48
45
40

36

41

37

36

21
15

16

2017

2018

19
15

12

11

2014

16

2015

2016

2019

2020

2022

9

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Hiscox online art trade report 2021 – part two

Online art spending trends
NEW MEDIA ART SALESROCKET IN 2021

Of art buyers we surveyed, 41%
said they had bought new media
art online in 2021, up from only
17% in 2020. This correspondswith the rapid ascent of new
media art issued as NFTs. The
rise of the NFT market is likely
to have increased interest indigital art during 2021 and beyond.

with 39% buying only one and 52%
buying between two and five digital
artworks; 4% had bought between
11 and 20 new media works
last year.

Nearly nine-in-ten (89%) said
VERY MANY ART
BUYERS HAVE BOUGHT they had bought digital art with
LOW-VALUE DIGITAL ART an average price below $5,000,
with most (57%) spending on
average less than $1,000. The large
majority (91%) have bought lessthan five digital artworks in 2021,

Nearly a fifth (19%) said they had
bought more than £50,000 worthof art online (13% in 2020), and 58%of the respondents had spent morethan $5,000 on online art purchases
last year, up from 52% in 2020.

How much have you spent on
buying art and collectibles online
in the last 12 months? (%)

ART BUYERS ARE SPENDING
MORE ON BUYING ART AND
COLLECTIBLES ONLINE IN 2022

How much have you spent on buying art and collectibles online in the last
12 months? (%)
2020

15

2022

Under £1,000
932

Between£1,000–£5,00034

17

Between£5,000–£10,000

23

15

Between£10,000–£25,000

Between£25,000–£50,000

7

6
9
17

Over £50,000

13
19

Hiscox online art trade report 2021 – part two During the last 12 months, if you
have bought art and collectibles
through any online platform, what
have you bought? (%)

During the last 12 months, if you have bought art and collectibles
through any online platform, what have you bought? (%)
2020

95 95

2022

56
48
29

26
15
Fine art

Decorative Jewellery
art and design

Watches

FINE ART DOMINATESPURCHASES, BUT
CROSS-COLLECTING IS
BECOMING MORE COMMON
95% of art buyers said they had
bought fine art online in 2021,
this was unchanged from 2020.
However, more art buyers (56%)
have bought decorative art anddesign online, compared to 48% in
2020. We have also seen a jump in
online buying of jewellery this year,

ArtTactic RawFacts AnnualAuction Review 2021

4

24

16 14
Wine

19

23

Antiques

22
13 12

13

Stamps Memorabilia
and coinswith 26% of respondents statingthat they had bought jewellery online
in the last 12 months (compared toonly 15% in 2020). These findings
correspond with trends observedin the market for online-only sales
among the big three auction houses(Sotheby’s, Christie’s and Phillips)
seeing online-only sales grow for
jewels and watches (+42% in 2021),
clothing and accessories (+69% in2021) and other collectibles (+56%
in 2021)4.

11

12 

Hiscox online art trade report 2021 – part two

If you have bought fine art
directly online, what type of
medium have you bought? (%)

If you have bought fine art directly online, what type of medium haveyou bought? (%)
Paintings

Photographs

PrintsSculpture

Drawings

New media art(video/digital)

83
75

72
69

74

82

81
80

77

72

71
62

59
55

57

57
54

53

51

51

59

52
44
40

39

39

35

31

42

44
43

41
38
37

26

24
21
18
12

12

2014

2015

17

17

17
12

2016

2017

2018

2019

2020

2022

Hiscox online art trade report 2021 – part two Grayson Perry, How I Thought of Myself, 2000 | Glazed ceramic | 50 x 22 x 22cm | Courtesy the artist and Victoria Miro, © Grayson Perry.

13

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Hiscox online art trade report 2021 – part two

Social media
SOCIAL MEDIA FATIGUESETTING IN AMONG FEMALES
AND THE YOUNGER GENERATIONOF BUYERS?
SOCIAL MEDIA IS
INCREASINGLYINFLUENCING ART
BUYING ACTIVITY

Which social media
platform do you use mostfor art-related purposes? (%)

Social media has an increasing
influence when buying art, said
40% of respondents – the highest
reading since we began asking thequestion in 2015.

Although the share of online art
buyers who have bought art throughsocial media in 2021 came in largely
unchanged from the year before(23%, compared to 24% in 2020),
those under 35 who said they had
purchased art through social media
fell to 28% in 2021, compared to
35% in 2020.

INSTAGRAM REMAINS DOMINANT
CHANNEL, BUT LINKEDIN AND
TIKTOK ARE GAINING TRACTION
Among younger online art buyers,
26% said LinkedIn and 10% said
TikTok had become important social
media platforms for art-related
purposes, compared to 22%
and 3% in 2020.

Which social media platform do you use most for art-related purposes?
(%)
Instagram
63

Facebook
52

34

54

48

65

68

71

57

49

38
33
23
17

2015
Are you influenced by social
media activity when buying
art? (% of respondents
saying 'yes')

2016

2017

2018

2019

2020

2022

Are you influenced by social media activity when buying art?
(% of respondents saying ‘yes’)

40

34
32

31

33

29

24

2015

2016

2017

2018

2019

2020

2022

Hiscox online art trade report 2021 – part two What are the most importantreasons for using Instagram
for art-related purposes? (%)

What are the most important reasons for using Instagram for art-related
purposes? (%)
Discover new
art and artists
Follow artists I am
already familiar with
See what’s popular
and/or trending
Art-related news

100

80

Find openings
or exhibitions
Interact at art fairs

Share art I like
Finding art to purchase

60

40

20

0

Who are the social media
influencers? Whose social
media posts are most likely
to influence your decision tobuy a work by a particularartist? (%)

2016

2017

2018

2019

2020

2022

Who are the social media influencers? Whose social media
posts are most likely to influence your decision to buy a workby a particular artist? (%)
2020

37

Auction specialist

35

2022

35

Art market
commentator

39
38

Art fair

45
44

Critic4949
50Collector

45

Auction house

51
50
52

Curator39

58
57

Museum63
64

Gallery

73
71

Artists or studio

0

10

20

30

40

50

60

70

15

16 

Hiscox online art trade report 2021 – part two

Market friction among hesitant consumers
MILLENNIAL ART BUYERS AREHESITANT BUYING ART ONLINE
Although there was a small increasein the number who said they werelikely to buy art online this year (44%compared to 41% in 2020), there arestill big hurdles that online art sellers
must overcome before customers
are fully convinced.
Many of the worries that prevented
people from buying online in thepast still hold true.
MAIN REASONS FORNOT BUYING ONLINE

What are your main reason for not buying art online? (%)

What are your main reason for
not buying art online? (%)

2020

35

Affordability: artworks are mostly
selling out of my price range

24

2022

Online payments: I am uncomfortablepaying larger sums of money online

32
33

Insurance: I am concerned that if thework is damaged in storage or transit
will this be covered by insurance

34

Shipping: I am worried about the
packaging and method of shipment

36

39

41

Price transparency: lack oftransparency and objective
guidance. How do I know I
am paying the ‘right’ price?

39
41

Returns policy: I am worried that I
might not like the art or object, andif so, whether I am able to return it
Quality and provenance: there is
not enough information provided
about the quality and provenanceof the object

39

54
50
60
51

Authenticity: I am afraid of buying a
fake or an object which is not what
it sets out to be

51
51

Reputation of the seller: I don't
trust buying from sources I don't
already know

58
66

Condition: I am not able to inspect
the work and therefore worried about
the physical condition

67
70

Physical inspection: I am worried thatthe work will look different in real life
compared to the digital image

75
78
0

10

20

30

40

50

60

70

80

Hiscox online art trade report 2021 – part two ?

HOW TO INCREASE
TRUST IN THE ONLINEART MARKET?

Which of the following services would make you more confident inbuying art and collectibles online? (%)
6

Celebrity endorsement

Which of the following services
would make you more confident
in buying art and collectibles
online? (%)

2020

8

2022

30
31

Repayment plan (interest-free)47
49

Expert endorsement
Customer reviews/feedback
from previous buyers

42

54

Option to talk to an expert
or specialist

61
62

Pricing tool – comparison tosimilar works sold65
53

Independent valuation reportMore background information
about the artist/object
More information about the
shipping and packing of
the object
Include the option to insure
the object when buying it

72

66
63

70
80

71
70
69

30-day return guarantee

74
76
81

Certificate of authenticity

86
86
89

Provenance tracking

95
95

Condition report

0

10

20

30

40

50

60

70

80

90

17

18 

Hiscox online art trade report 2021 – part two

Market friction among hesitant consumers (cont.)
OVER SEVEN-IN-TEN(71%) OF ART BUYERS
SAID THAT CYBERCRIME WAS A WORRYTO THEM IN THE ONLINEART MARKET, UP FROM
63% IN 2020.

How concerned are you about
the following cyber crime whentransacting art online? (% saying
concerned/very concerned)

CYBER CRIME
INCREASING FEAR OF BEING
DEFRAUDED ONLINEOver seven-in-ten (71%) of art
buyers said that cyber crime wasa worry to them in the online art
market, up from 63% in 2020.

Concern was highest (75%)
among big spenders (above$100,000 a year on art). Almosta third of art buyers (31%) said
they had avoided buying art
above a certain amount due
to fear of cyber crime, up
from 23% in 2020.

How concerned are you about the following cyber crime when transacting
art online? (% saying concerned/very concerned)
2020
67

2022
55

54

47

50

42

Data theft

When buying art online, does
the familiarity of the platform
affect your decision to buy in
any of the following ways (%)

62

57

Email fraud

Hacking of credit card/financial details

Payment/invoiceinterception

When buying art online, does the familiarity of the platform affect yourdecision to buy in any of the following ways?
2020
2022
I would never buy art froma platform I didn’t recogniseor that I had never heard of58
63

I would be less likely to buy
art from a platform I didn’t
recognise/I’d never heardof, but wouldn’t rule it out

35
31

I would only make low value
purchases from a platform I
didn’t recognise/I’d neverheard ofThe familiarity of the platform
would not affect my decision
to make a purchase

13
14

5
4

Hiscox online art trade report 2021 – part two Amadeo Luciano Lorenzato, Sem título (Untitled), 1973 | Oil on board | 51.7 x 41.5 x 4cm | Courtesy David Zwirner.

2020

July

OctoberGreenhouse Auctions
DLaunched a new online-only
auction house designed
to reduce speculation on
emerging artists’ markets.
Founded by former Christie’s
vice president, Shlomi Rabi.
Daata fairDLaunch of Daata fair, a newplatform for video and digital
works. Twenty galleries took
part in the inaugural edition
with each dealer presenting
up to six works by a single
artist. The fair is an extensionof Daata, a digital platformfounded in 2015 by David Gryn.

Phillips
DPhillips held its first major
online live-streamed evening
sale: 20th Century andContemporary Art
Evening Sale.
Culture Place Inc.
DThe Dallas Art Fair announced
the launch of Culture Place,Inc., a year-round websitethat will host a rotating groupof Texas-based (and some
Texas-adjacent) galleries.
Christie’s
DChristie’s held its first major
online live-streamed evening
sale event: ONE: A Global Saleof the 20th Century.
NovemberWhite Cube
DWhite Cube launched a series Fresh Goods
DThe Bakehouse Art Complex
of online exhibitions titledin Miami, a non-profit
Tomorrow: London. Works areorganisation that provides
by 20 graduates selected fromstudio spaces and other vital
London’s most prestigious
resources for emerging andart schools by the gallery’s
mid-career artists, launchedcuratorial team.
an online sales platform,
Fresh Goods.

AugustPhoto London
DPhoto London announced itwill run as a digital-only fair.
Works will now be put up
for sale on the online sales
platform, Artsy, a fair partner.

September
Art Car Boot Fair
DThe Art Car Boot Fairlaunched its first online edition
and then it crashed due tooverwhelming demand.

December
Nifty Gateway
DNifty Gateway, a marketplacefor digital works of art,
auctioned 20 pieces byBeeple for $3.5 million.

19

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Hiscox online art trade report 2021 – part two

NFT art buyer survey findings 2022
1. ARE TRADITIONAL ART BUYERS 2. WHY ARE THEY BUYING?
BUYING NFTS?
INVESTMENT RETURN IS THE
YOUNGER ART BUYERS ARE
KEY DRIVERHESITANT, BUT BIG SPENDERSARE PLACING THEIR BETS
Unlike the traditional art market,
where buyers are often motivatedDespite a year in which the art andby their emotions towards an artwork
collectibles NFT market reached an or because they want to support aestimated $11.9 billion according
particular artist, the main reason for
NonFungible.com, only 19% ofbuying NFTs is the hope of turning a
art buyers surveyed in 2022 said
profit. Over eight-out-of-ten (82%) NFT
they had bought an NFT. Even thebuyers said that value potential wasyounger generation of art buyers are their most important motivation, while
yet to fully embrace NFTs, with only 67% said that it was their passion
14% saying they had ever bought an for art.
NFT. Among new art buyers, 16%
said they had bought one or more
Over a third (39%) of NFT buyers
NFTs. But close to a third (31%)
said that social impact and patronageof big art spenders (who spend
was a key motivation for them, andover $100,000 on art a year), said
38% said that the social and community
they had bought NFTs in the last
aspect of buying NFTs was important
12 months.
to them. Although we are increasingly
seeing celebrities using their NFTs as
MORE MEN HAVE BOUGHT NFTS, their avatars and profile pictures on
BUT MORE FEMALE BUYERS ARE social media, only 29% of NFT buyers
LIKELY THIS YEAR
from the art market said that ‘identity
and status’ were important factors for
Fewer than a fifth (16%) of female
buying NFTs. Nearly all (95%) of thoseart buyers surveyed said they
who had spent more than $25,000
had bought one or more NFTs,
on NFTs in the past 12 months,
compared to 22% of male buyers
said that investment return was
who said the same. But 27% of
their key motivation.
female art buyers said they would
buy an NFT in the next 12 months,
MALE BUYERS PRIMARILY
closing the gap with male
MOTIVATED BY INVESTMENT,
buyers (28%).
LESS SO FOR FEMALE BUYERS
We can already start to see a genderschism developing with regards tomotivations for buying NFTs. While
96% of male buyers said they had
bought art for investment reasons,and 58% for their passion for digitalart, far fewer (67%) female buyersbought them primarily for investment
reasons; 76% bought them becauseof their passion for art and particularly
digital art.

Hiscox online art trade report 2021 – part two 

How important are the following
motivations when buying art and
NFTs? (%)

How important are the following motivations when buying art
and NFTs? (%)
93

Emotional benefits(passion for art)

Social aspect (being
part of a scene of
like-minded people)

32
38

62
82

33
29

Social impact/patronage(supporting artists,
arts organisations)

How important are the following
motivations when buying NFT
Art? (%)

NFTs

67

Value potential (returnon your investment)

Identity and status(it defines who I am)

Art

66
39

How important are the following motivations when buying NFT art? (%)
76

Emotional benefits(passion for art)

Social aspect (being
part of a scene of
like-minded people)

Social impact/patronage(supporting artists,
arts organisations)

Male

58

52
25

67

Value potential (returnon your investment)

Identity and status(it defines who I am)

Female

96

33
25

50
29

21

22 

Hiscox online art trade report 2021 – part two

NFT art buyer survey findings 2022 (cont.)
Do you think you willpurchase an NFT in the
coming 12 months? (%)

Do you think you will purchase an NFT in the coming 12 months? (%)
All art buyers
41

New art buyers: do you think
you will purchase an NFT inthe coming 12 months? (%)

New art buyers

42

37
32

31

27

Yes

No

Don’t know

3. HOW MUCH ARE
THEY BUYING?

4. WHERE ARE THEYBUYING NFTS?

MOST NFT BUYERS ARE STILLTESTING THE WATER

MARKETPLACES MOST POPULAR

Among those art buyers who hadbought an NFT, 30% had bought asingle NFT, while 39% had bought
between two and five. Fewer than afifth (15%) had bought between fiveand ten and 16% had bought morethan that.
Of the most frequent buyers,
two-thirds were men aged under
55, most of whom (83%) spent
more than $50,000 a year on art.

Almost a third (30%) of NFT buyers
said that buying them directly fromthe artist or creator had been themost important way of acquiringthem in 2021. But curated
marketplaces were where mostbought their NFTs last year (41%).
Nifty Gateway, Foundation, Superrare
and Institut are selective and curated,rather than being platforms on whichanyone can mint new NFTs.

Open platforms, such as OpenSea,
are popular due to the large audience
MOST ARE SPENDING RELATIVELY and liquidity they offer, with 27% saying
LITTLE ON NFTS
these had been their top choice. Morefemale NFT buyers (38%) rated open
Among those art buyers surveyed
platforms like OpenSea as their top
who had bought NFTs in the pastchoice, compared to 17% of male NFT
12 months, 35% had bought NFTs
buyers. Over half (52%) of male NFT
with a total value of less thanbuyers showed a stronger preference$1,000, while 37% had spent up
for curated NFT platforms, while 30%
to $5,000 on NFTs; only 15% had
said they had bought directly from thespent more than $5,000 so far on
artists (compared to 28% of the female
NFTs. Among male NFT buyers,
NFT buyers).
38% had spent more than $5,000
in the past year, with 12.5% of male
NFT buyers saying they had spent
more than $100,000 on NFTs.

Hiscox online art trade report 2021 – part two What is yourpreferred destination
for buying NFTs? (%)

What is your preferred destination for buying NFTs? (%)
41
2
0Curated NFT marketplaces(Nifty Gateway, Superrare,Foundation, Insititut etc.)
Artist/creator directly
Open NFT marketplaces(such as Opensea)

27

Metaverses (such as
Decentraland, The Sandbox)
Online games (such as
Axie Infinity)30

5. HOW TO BUY?
ARTISTIC INTEGRITYAND QUALITY

MARKET DYNAMICS

Although, most NFT buyers are
driven by investment motivations,only 9% said that past price
Asked which is the criteria or
performance and market liquidity
attribute that they believe is mostwere the most important criteria
important when buying an NFT, 32% and suggest that most NFT buyers
said the artist’s reputation and track are yet to trust the data enoughrecord, followed by 25% who said
to use this as their primary criteria
it was the piece’s ‘artistic quality’.
when buying NFTs.
A further 16% said it was its rarity,
whereas 5% said the large NFT
projects (such as CryptoPunks or
Bored Apes), with their template of
10,000 unique NFTs, were the mostimportant attribute when buying NFTs.
COMMUNITY
The community’s dynamics (its sizeand engagement of social media
followers) was the most importantcriteria when buying for 14%
of respondents. A further 5%
said they preferred large NFT
projects (like Bored Apes). Some
respondents said that it wasn’t
only the size of the communitythat mattered, but how that
community had built up – themore organic this process isthe better, while artists that usedpromotional services were frowned
upon, as this often leads to bubbles.

23

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Hiscox online art trade report 2021 – part two

NFT art buyer survey findings 2022 (cont.)
What is the mostimportant attribute
when purchasing an
NFT right now? (%)

What is the most important attribute when purchasing an NFT
right now? (%)
32
5
9

14

16
25

6. WHAT IS THE MOSTIMPORTANT BENEFITOF OWNING NFTS?
Among the top three benefitsof the NFT technology, ‘title andownership’ to digital art and otherdigital assets was ranked as themost important aspect of an NFT,
with 27% of the NFT buyers saying
this was the main role. A further
18% said that NFTs’ most important
contribution had been the ‘access’and ‘markets’ they have created for
digital art, while 14% said that NFTs
could become the digital title to aphysical object (digital twin), andact as the gateway to link thephysical art market to blockchain
and to Web 3.05 in the future.
7. WHY AREN’T ART LOVERSBUYING NFTS?

Also known as the decentralised
web, Web 3.0 is the third versionof the Internet, which is seen as
an improvement over the current
Web 2.0 Internet. Web 3.0 is
expected to be a decentralised
version of the Internet where
people have control over theirdata and we will have moretransparency and large content
that will be accessible to all.

5

Over a third (35%) of current art
buyers have a strong preference forphysical art and have no interest indigital art and NFTs. Another group,
representing 27% of existing art
buyers, said that they didn’t see
the ‘artistic quality’ in NFTs now.
Some (13%) buyers said the market
for NFTs is a bubble that’s about
to burst, and they would wait toLarge NFT projects (such as
Crypto Punks with 10,000
unique images)
Past NFT market performance(price performance, market
liquidity)
Community dynamics (sizeof the artist’s social media
following and engagement)
Unique NFTs or small editions
The quality of thedigital artwork
The artist’s reputationand track record

see which artists and NFT projects
would emerge after that. A further
11% of art buyers said their main
reason for not entering was thatthey didn’t trust the NFT market,
because of its lack of regulation,
which increased the risk of scams,
speculation, and manipulation.
Fewer than one-in-ten (8%)
existing art buyers said they
hadn’t bought NFTs because
they didn’t understand how
they are priced and valued.
We are most likely experiencing
a period of irrational exuberance,
where investor enthusiasm and
FOMO are driving asset prices
higher than the NFT fundamentals
would justify. But does anyone really
understand the fundamental valueof NFTs?

Hiscox online art trade report 2021 – part two What do you believe is themost important benefit of
NFTs? (%)

What do you believe is the most important benefit of NFTs? (%)
NFTs ensure a more equitableshare of the revenue generated
for the artist

7

NFTs provide digital scarcity which
was not possible in the past

11

NFTs could provide authenticity
for digital assets

11

NFTs have the opportunity to
democratise the existing art market
NFTs could become the digital
title to a physical art object (i.e.
physical objects will have a
digital twin, represented by an NFT)
Accessibility and markets – digitalart can now be accessed, bought
and sold, that was not practical in
the past

11

14

18

NFTs provide title and ownershipto digital art and other digital assets
What is your main reason
for not wanting to purchase
an NFT? (%)

27

What is your main reason for not wanting to purchase an NFT? (%)
35
5
8

11

13
27

I like physical art, and I am notinterested in digital art and NFTs
I don’t see the artistic ‘quality’in NFTs at the moment
I think we are in a bubble thatwill burst, and I will wait to see
what emerges from the ashes
I find the market volatility,
speculation and manipulation
off-putting
I don’t understand how NFTs
are priced and valued
I find the process of buying andselling NFTs too cumbersome,it’s not at all user-friendly for
non-crypto audiences

25

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Hiscox online art trade report 2021 – part two

NFT art buyer survey findings 2022 (cont.)
8. WHAT COULD HELP BUILDCONFIDENCE IN NFTS?
Nearly a quarter (24%) of art buyers
said that what is most important forthem is to find interesting NFT art
that they like. Some respondents
commented that real talents are
getting lost in the sheer number of
NFTs being minted at the moment,with a large number of copy-cat
projects flooding NFT platforms in
an attempt to emulate the successof Bored Apes and CryptoPunks.
But just as many (24%) said theywanted better regulation of the NFT
market before taking the plunge.
Existing art buyers also seem to be
waiting for the traditional art world
to embrace NFTs, with 22% saying
this would be the most important
What is the most important
aspect that would make you
more confident in purchasing
an NFT in the future? (%)

Another factor mentioned was
the NFT market’s large current
carbon footprint. But steps are
already being taken to tackle this,as more blockchains are movingfrom ‘proof of work’ to ‘proof of
stake’6. Ethereum 2.0 (proof of
stake) is estimated to becompleted sometime in 2023.

What is the most important aspect that would make you more confident inpurchasing an NFT in the future? (%)
I want to see more of the traditionalart world (like galleries and museums)
embracing NFTs before I enter
The process of buying and selling
NFTs needs to move closer to a
traditional ecommerce experience
I want to see more artists from the‘traditional’ art world embracing
NFTs, as I don’t find current NFT
art work of interest

Proof of stake cuts out theneed for complex computations,making the process more energy
efficient. In ‘proof of stake’, thepower to validate transactions
goes to those with the highest
holdings of the network's native
currency. The idea is those witha significant stake in the system
are less likely to manipulate it.
And if they do, they could havetheir stake destroyed.

development in terms of instilling
more confidence. There are alreadysigns that this is happening, withseveral initiatives, projects andpartnerships having already beencreated. Finally, 18% of art buyers
said they wanted the process ofbuying NFTs to become more
like buying other items overthe internet today.

12

18

22

I want to see more regulation of the
NFT market

24

I want to find NFT art or an NFT
artist that I like

24

6

27

Hiscox online art trade report 2021 – part two

Conclusion
THE TRADITIONAL ART MARKETAND THE NFT MARKET ARE
LIKELY TO CONVERGE
It took years and a global
pandemic for the established
art trade to understand andembrace the potential of theinternet. But the trail blazed by
the online art market pioneers
could mean that NFTs become apart of the mainstream art market
soon. There are growing signs
that the two are already starting
to meet.
The premier league auction houses
Sotheby’s, Christie’s and Phillips
sold $185 million of NFTs though
their public auctions in 2021,
having sold none in 20207.
A few blue-chip galleries have also
started to sell NFTs. Pace Gallery,for example, has launched Pace
Verso, a new platform for minting,exhibiting, and collecting NFTs.
Art fairs have also got in on the act.
In December 2021, Art Basel Miami
launched its ‘Humans + Machines:
NFTs and the Ever-Evolving Worldof Art’, an interactive NFT exhibition
from the energy-efficient
blockchain Tezos.
In March 2022, Art Dubai launched‘Art Dubai Digital’, which included
a digital section that’s focused on
the world of NFT art, video art andvirtual reality.

7
ArtTactic RawFacts AnnualAuction Review 2021

Some big-name artists havealso been quick to realise NFTs’
potential. In July 2021, Damien
Hirst launched ‘The Currency’, acollection of ten thousand NFTs that
correspond to ten thousand unique
physical artworks. Buyers have one
year to decide whether to keep
the NFT or trade it for a physicalartwork; whichever is not selected
will be destroyed. “The Currency
is an experiment in belief in which
every participant is confronted
with their perception of value,
testing the boundaries of thedigital and physical worlds andour role in both,” according to
Hirst’s gallery Gagosian.
Jeff Koons announced in September
2021 that he was also going torelease NFTs together with Pace,and his first project is titled ‘Jeff
Koons: Moon Phases’.
Meanwhile, the British Museum
teamed up with NFT platform
LaCollection in September 2021
to launch NFTs as digital Hokusai
postcards. It then followed thisup in January 2022 when it turned
20 of William Turner’s artworks
into NFTs.
There is also a growing interest indigital art among existing art buyers,
according to our Online Art Buying
Survey, carried out in January 2022,
which offers a window into art
lovers’ perceptions of NFTs.
It suggests that NFTs are
kickstarting a demand for digitalart. Of the art buyers we surveyed,
41% said they had bought new
media art online in 2021, up fromonly 17% in 2020. Over a quarter(27%) of all art buyers surveyed said
they are likely to buy an NFT in the
coming 12 months (27% of femaleart buyers and 28% of male buyers).
Of younger buyers, 29% said they
will purchase an NFT in the coming
12 months, whereas 41% of newart buyers said they will buy an NFT
this year.

Hiscox online art trade report 2021 – part two

Juan Uslé, Cruzavientos, 2017-2018 | Vinly, dispersion and dry pigment on canvas | 61 x 46cm | Courtesy the artist and Frith Street Gallery.

28

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Hiscox online art trade report 2021 – part two

Methodology
ONLINE PLATFORMSURVEY FINDINGS
Sample structure
Findings are based on responses
from 595 art buyers surveyed by
ArtTactic during January 2022.
The aim of this survey was toexplore how online art buying
behaviour has been affected by
the Covid-19 pandemic, andto what extent these changes
are temporary or permanent. In
addition to the online art market,
we have also added a section
on NFTs and online art buyers
attitudes towards buying NFTs.

Regions (%)

Europe55
12
23North America
Asia
Middle East

6

Latin America
Australia
Africa31

Age (%)
24

24

19

18

11

3
0
Under 18

18-24

25-34

35-44

45-54

55-64

65+

Gender (%)

Male

56

Female44

Hiscox online art trade report 2021 – part two

How much do you spend on art and collectibles a year? (%)
Under £1,000

19

Between £1,000-£5,000

24

Between £5,000-£10,000

17

Between £10,000-£25,000

13

Between £25,000-£50,000
Between £50,000-£100,000

76Over £100,000

15

How long have you been collecting? (%)
58

17
11

9

4
Less than
one year

Between one
to three years

Between three
to five years

Between fiveto ten years

More thanten years

30

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21674b 04/22