In 2023, the superyacht industry experienced a significant decline in sales, according to the new SuperYacht Times’ State of Yachting report. Sales of new superyachts, defined as yachts over 100 feet long, fell by 17% compared to the previous year. The report highlights various factors contributing to this decline, such as long waiting lists, soaring costs, and sanctions against oligarchs. This decrease in sales is a notable shift from the record-breaking numbers seen in 2021, when there were 313 sales of new superyachts.
Ralph Dazert, the head of intelligence at SuperYacht Times, pointed out that buyers looking to purchase a new yacht over 200 feet are facing wait times of three to four years due to backlogs stemming from the pandemic. Additionally, prices have been on the rise due to higher labor and material costs. Dazert predicts that new superyacht sales may continue to decrease in the coming year as a result of these ongoing challenges. The largest superyachts, particularly those over 200 meters, saw a significant drop in sales, with a 40% decline.
Shift in Buyer Demographics
The report also discusses how the composition of superyacht buyers has changed, with Russian buyers pulling back from the market following the 2022 Ukraine invasion. Rich Russians were known for ordering extravagant and large yachts, contributing to the decline in sales of super-sized vessels. On the other hand, American buyers are filling some of the gaps left by the Russian buyers, accounting for nearly a quarter of all superyacht sales in 2023. While Americans tend to purchase smaller yachts compared to Middle Eastern and Russian buyers, the size of American-owned superyachts is gradually increasing.
Despite the drop in new sales, the number of yacht completions increased in 2023. This data reflects yachts that were ordered during the height of the pandemic and are now being launched. The report highlights a 31% surge in completions, indicating a growing demand for the entire ecosystem of the yacht economy, from builders and brokers to marina slips and crew. The total number of superyachts has nearly tripled since 2002, reaching approximately 6,000 vessels, signaling a thriving market.
According to Dazert, the influx of wealthy buyers who entered the market during the Covid pandemic continues to drive growth in the yachting industry. Many first-time yacht owners are now upgrading to larger vessels, suggesting that the market’s high-water mark will likely continue to rise. The pool of potential customers has expanded permanently, setting the stage for ongoing evolution and innovation in the superyacht market.
The superyacht industry in 2023 faced challenges but also opportunities for growth and transformation. By adapting to changing buyer preferences, addressing supply chain issues, and leveraging new technologies, the industry can continue to thrive and evolve in the years to come.