Collectibles Market Analysis- Size, TAM, SAM, Competitive Analysis, Emerging Trends & Investment Opportunity
Collectibles Market Size is expected to be $420 billion in 2021. The market is expected to grow at a CAGR of 5.6 % during the next five years. Luxury handbags, art, Coins, vintage watches, rare wine & Whisky are estimated to remain favorites during the next five years. However, Demand for Collectibles such as colored diamonds, Furniture, and Jewelry will remain sluggish during the forecast period. The online auction will continue to attract investment and we, at Staticker, expect Metaverse & NFT in the collectibles market to act as game-changers.
The growth in the collectibles market is to remain muted in the year 2022 with no noticeable sign of gaining momentum. The hawkish rate hike by the fed will certainly restrict the flow of capital, ultimately making the dollar strong. Emerging collectible markets such as APAC may see volatility in near future. Rising inflation, adverse geopolitical conditions, and high crude oil prices will act as headwinds for the broader collectible market. However, anecdotally, NFT-linked collectibles are not supposed to lose their shine this year. Limited editions may be sought-after collectibles in the near term but in the long run, rare and vintage collections will retain their position as blue-chip collectibles.
Collectibles- A Brief Introduction
Collectibles are among the most unusual investments under the category of alternative investments. Any tangible object that individuals can and do collect can be considered a collectible, including everything from exquisite china to wine bottles, rare manuscripts to antique cars, and everything in between. These “physical assets” are gathered by collectors because they adore them. Investors hold on to them in anticipation that their value will rise over time.
There are no assurances that any investment will increase in value and there are risks involved. Additionally, because of their diversity, collectibles are a very dynamic category. Sometimes the most disposable products are the ones whose costs soar, while overhyped
However, some collectibles are regarded as rather wise investments year after year. They possess some or all of the traits that investors seek, such as credibility, liquidity, transparency, or trackability. Every single item will always have a value that is greatly influenced by its rarity, how near to mint condition it is, and how you could find a buyer – all factors that cause a lot of variation.
Market Development and Trend for Collectibles
The attraction of collecting rare artifacts in emerging and developed nations has undoubtedly contributed to the steady rise of online collectible sales. Antiques and collectibles are anticipated to develop in emerging nations, where consumer spending is rising and e-commerce is still expanding. Since smartphones and other mobile devices become widely accessible, collectibles sales have significantly surged. The demand for non-fungible tokens created by online investors and collectors has driven up the cost of digital collectibles. Traditional collectibles are likewise becoming more and more well-liked. Not only the arts. High net worth individuals are also becoming interested in other collections. It can be a piece of antique luggage or a writing instrument made of sterling silver with a limited edition of 100 pieces that are carved with diamonds.
Due to the worldwide online selling of antiques and collectibles in recent years, the industry has seen a significant increase in revenue generation. Growing economic conditions and consumer spending are to blame for the huge increase in the worldwide collectibles market. Additionally, rising disposable income has pushed consumers to spend more money on collectibles. The long-term expansion of the industry will profit from this element. Additionally, two new trends that are positively influencing the trajectory of the global collectibles market are investing in collecting as a kind of investment and selling collectibles digitally.
Investors are allocating 5 to 10% of their portfolio to collectibles, as advised by professionals and financial consultants. Capital growth, safe haven investments, and portfolio diversification are the main reasons why people are investing more in collectibles. On the other hand, significant growth in the trade of collectibles over internet platforms is anticipated. Even after the Covid-19 outbreak emerged, the sale of these expensive goods increased. The market expansion will also be further boosted during the anticipated period by the growing acceptance and public awareness of the digital sale of collectibles goods.
Collectibles Market- An Investment Opportunity or Speculation
Collectibles are nothing new, people around the world have been collecting antiques, art, memento, Sports memorabilia, and luxury & precious items from time immemorial. However, I or you might have collected coins or stamps, thinking their intrinsic value will increase over time, which in fact has not been appreciated till now.
The funda is simple, the intrinsic value of Collectibles is directly proportional to demand and inversely proportional to supply. Time definitely adds value to collectibles. This makes collectibles unpredictable but isn’t it the case with other assets like blockchain & stocks? Yes, it is! So, to a naïve person, it will always look like speculation but to an investor, it is an asset class that helps them diversify their investment. Moreover, historically collectibles have been used for noble causes such as charity.
The target customers for Collectible auction houses are ultra-high net worth individuals, however, with the advent of digital collectibles (NFT), more & more retail investors are pouring their money into the collectibles market. Some of the collectibles such as Furniture, Colored diamond, etc. have lost their shine over time while some of them started glittering with time. Whether starting a collectible business or investing money, Staticker lets you make informed decisions, mitigating the risk of eroding capital invested. Staticker market researchers identify trends in the evolving collectibles market.
Not Every Collectible is the same!
Staticker delivers you the following Information on Collectibles Market:-
- Collectibles Market Size (TAM, SAM, SOM)
- Collectibles Market Size Future Projections
- Collectibles Market Size Historical Analysis
- Collectibles Market Geographical Analysis
- Collectibles Market Geographical Expansion Strategy
- Collectibles Market Regional Feasibility Analysis
- Collectibles Market GO-To-Market Strategy
- Collectibles Market Sales Strategy
- Collectibles Marketing Strategy
- Collectibles Market Competitive landscape Analysis/ Benchmarking
- Product Portfolio Analysis
- Pricing Strategy
- Target Customer Analysis
- Collectibles Market Fundraising/ Pitch Deck Report
Online Auctions & Digital Collectibles are the next big thing in Collectibles Market
The online auction marketplace was nothing new in the collectibles market. Top auction houses like Sotheby’s (partnered with e-bay in 2002) and Christie’s (launched its own online platform in 2006) had an online presence since the dot-com bubble burst. It is only in recent times that auction houses were not allowed to have physical exhibitions due to Covid19, so, they shifted online. The majority of the participants in online auctions were millennial collectors.
NFT-linked digital artwork shows tremendous traction among millennials as according to Christie’s 3 out 4 collectors investing in NFT-linked digital art were millennials with an average of 42. With timed online auction sales reaching a million-dollar mark and increased millennial participation, social media marketing may gain traction in years to come. Digital collectibles will push the acceptability of crypto or Millennials who have invested in crypto are likely to buy digital collectibles. However, Staticker doesn’t see crypto appreciating in 2022.
Is Collectible Market seeing increased Millennial Participation?
Collectibles Market Regional Overview
Art Collectibles Market Historical trends & Future Outlook
What is up with Sculptures
Blue Chip collectibles
NFT linked Collectibles
Since this is a novel method of trading collectibles, the NFT Market is now rather dispersed. NFT authenticators include a sizable number of brand-new companies in addition to e-commerce marketplace companies like Niftys.com. Companies are joining this market from a wide range of industries, including music, media/entertainment, cinema, sports, art, and many more.
The usefulness and practicality of NFTs are major hot concerns in the NFT art sector. The top buyers control the NFT art market, and only a small percentage of artists enjoy more than $15 per NFT. The NFT market experienced a huge boom starting in 2017 and continuing until April 2021, with approximately 6.1 million based on 5 million NFTs that included buying, selling, and transferring. There was a resonant buzz about the increasing costs of NFT paintings, but it was discovered that the average sale price of about 75% of NFTs was $15, with only 5% of them selling for close to or more than $1500. Just 10% of all traders active in the market were responsible for almost 85% of all NFTs transactions.
Non-Fungible Tokens have swept the whole music industry and are now recognized as a revolutionary invention for musicians, singers, and every other participant in this dynamic. Independent musicians can now make money on the NFT music market. In fact, independent musicians, who accounted for 68.4% of all sales as of April 25th, 2021, bear the burden of music NFTs. All writers, artists, and other digital producers like having a direct line of communication with their fans via blogs, social networking, MP3, and other internet-based technologies. Fans and collectors who are open-minded to new artists and their work are a major force in the industry. The NFT music market’s revenue has increased along with the sharp rise in music enthusiasts. Such is the significance of these digital domains that NFT sales by various visual artists were surpassed by an NFT sold by the artist Beeple for $69 million. The EDM concept artist Grime sold NFTs valued $5.8 million in February 2021. The international phenomenon Steve Aoki quickly broke this record when, in March 2021, he sold NFTs with a narrow profit margin of $4.25 million.
Metaverse in Collectibles Auction
Covid 19 has heavily disrupted the collectibles market. Due to the lockdown, an industry that was totally dependent on the physical marketplace has gone online. A huge surge was seen in online transactions of collectibles since the mid of the year 2020. Governments around the world were printing money to avoid getting into a period of economic recession.
However, this leads to a decrease in the value of money and the super-rich class started investing in Collectibles through Online Auctions. So, for some collectibles, it was a period of tremendous growth, however, for others, it led to a nose dive fall in their sales figure.
In this digital era, the collectible online auction is a must, however, tangibility might be an issue. However, the metaverse can have a disruptive effect on the collectible market. First of all, the metaverse will significantly increase the number of customers visiting an auction with the help of metaverse auction centers in various regions.
For instance, an art gallery in Paris can have a metaverse art gallery exhibition in New York, London, Berlin, etc. where customers can see, touch & even buy the art through the metaverse. Online Auctions are great but are they a complete solution? I doubt! Metaverse is more of a speculative term now building future business platforms on this needs careful evaluation. Staticker specializes in vision consulting, Strategic consulting, and more.
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