Global Art Market Faces Downturn as Sales Decline for Second Consecutive Year

The global art market has experienced a significant downturn in 2024, according to the latest Art Basel & UBS Art Market Report 2025. For the second year in a row, worldwide sales have decreased, this time by twelve percent, totaling $57.5 billion. Contributing factors include ongoing geopolitical tensions, economic uncertainties, and a shift in buyer behavior towards more selective purchasing.

Notably, a retreat has been observed in the upper echelons of the market. The record-breaking sales that characterized 2022 are now increasingly rare. Conversely, the lower price segment has shown remarkable resilience, with the number of transactions rising by three percent to a historic high of 40.5 million in 2024. This indicates a thriving market for more affordable art, as smaller dealers--those generating annual sales under $250,000--saw a notable increase of 17 percent in their business, suggesting an influx of younger, digital-savvy, and values-oriented collectors.

Major players in the art industry, including auction houses and dealers, find themselves needing to adapt to these changing dynamics. Traditional auction houses reported a significant drop of 25 percent in sales, while private sales through auction houses increased by 14 percent. This shift highlights a growing preference for discretion and control among buyers in uncertain times, overshadowing the excitement of competitive bidding wars.

Online sales have also remained stable at a high level, albeit with an 11 percent decline in 2024. Nevertheless, the online market holds an 18 percent share of the overall art market, marking a robust establishment compared to the pre-pandemic figure of nine percent, although it falls short of the pandemic peak of 25 percent in 2020. Remarkably, nearly half of the online transactions were made by new buyers, underscoring the internet's role as a critical entry point for emerging collectors.

Geographically, the dominance of the United States, the United Kingdom, and China persists, but cracks are beginning to appear in this triad. The United States continues to lead with a 43 percent market share, but it has faced another setback with a nine percent decline. Factors such as the election cycle and new tariffs have dampened market sentiment. Meanwhile, China has experienced a steep decline of 31 percent, dropping to $8.4 billion--the lowest level since 2009. In Europe, the decline is less severe, with EU sales down eight percent to $8.3 billion. France, often viewed as a Brexit beneficiary, has seen a ten percent drop.

Countries with stringent tax or export policies are particularly vulnerable, indicating that Austria, with its 13 percent sales tax, may also feel the impact. The report identifies the potential for new trade barriers as a significant source of uncertainty moving forward. The possible reintroduction of tariffs, particularly between the United States and Europe, poses considerable risks for international art transactions. To thrive in this evolving landscape, stakeholders will need to adopt strategic approaches, whether at fairs, in pricing, or in navigating customs regulations.