The art market has faced its third consecutive year of decline, with auction sales down 44% compared to the same period in 2022. The first half of this year saw a total of $3.98 billion in auction sales at Sotheby’s, Christie’s, and Phillips, a drop of 6% from last year. This marks the lowest level in at least a decade.
The decline is attributed to lingering concerns over global economic growth, inflation, and rising geopolitical tensions. However, the prosperity of the wealthy is at record levels, with the top 10% of Americans adding $37 trillion to their wealth since COVID-19. The art market has historically been correlated with financial wealth, but a recent study suggests that this correlation may be broken due to generational shifts.
The new generation of wealthy, comprising millennials and Gen Z, is driving changes in the art market. They are more likely to prefer digital platforms for buying and selling, and their tastes often differ from those of previous generations. To adapt, auction houses are increasing online sales, luxury items, and lower-priced offerings.
According to ArtTactic, jewelry sales jumped 68% in the first half compared to last year, while total auction sales at Christie’s were stable due to a surge in online sales and luxury goods. Younger collectors are driving demand for collectibles priced under $100,000, with competitive bidding for works under $50,000 on the rise.
Auction houses are racing to capitalize on this shift by showcasing items that appeal to younger generations. Christie’s CEO Bonnie Brennan stated that 80% of bids this year have come from online platforms, and nearly a third of winning bids were from millennial or Gen Z buyers, indicating a renewed focus on relevance with the younger generation.
Source: https://www.cnbc.com/2025/07/25/fine-art-auction-sales.html