Art Dealers and Galleries NAICS 459920

Nov 18, 2025 - US Art Market Saw Modest Contraction in H1 2025

• In the first half of 2025, the US maintained its position as the world’s largest art market, generating $2.2 billion in fine-art auction sales, a modest decline of less than 1% year-over-year, according to ArtNet. This resilience contrasts with the 16.5% global downturn, underscoring the US market’s relative stability despite reaching its third-lowest half-year total in a decade. China ranked second with $666.1 million, down 26% amid economic challenges and reduced transparency from major auction houses. The UK followed closely at $630.4 million, marking a 24.5% drop and continuing a two-year trend of halved sales, compounded by a high-net-worth exodus. France stood out as the only major market to grow, with $363.9 million, up 4.7%, buoyed by Sotheby’s new Paris saleroom and rising commercial appeal. Overall, the US remains dominant, while Europe shows mixed fortunes and China struggles with structural headwinds.
• Weaker consumer sentiment and confidence indices in late 2025 highlight mounting challenges for discretionary sectors such as art dealers and galleries. The University of Michigan’s Index of Consumer Sentiment fell 6.2% month-over-month in November to 50.3, a nearly 30% annual decline, while the Conference Board’s Consumer Confidence Index slipped to 94.6 in October. Rising inflation expectations, 4.7% year-ahead and 5.9% in consumer surveys, combined with concerns over higher interest rates, suggest households are tightening budgets.

• According to a report in The Art Newspaper, the art market faces mounting challenges amid global economic uncertainty, with notable closures and cancellations, including Tim Blum’s gallery shutdowns in Los Angeles and Tokyo and the Art Dealers Association of America’s New York fair cancellation, highlighting structural vulnerabilities. Despite macro pressures such as geopolitical conflicts, inflation, and shifting consumer behavior, some art businesses are adapting through innovative models. Phillips auction house introduced a revised fee structure to incentivize early commitments, while galleries like Goodman Gallery embrace collaborative, e-commerce-inspired platforms. Although broader economic indicators suggest resilience, concerns persist over debt sustainability and evolving tastes that question traditional art ownership.
• According to a recent ArtTactic report in ArtNews, overall global auction sales at Christie’s, Sotheby’s, and Phillips were down 6.2% in the first half of 2025 amid economic uncertainty, while the number of lots sold increased 1.3% year over year. Old Masters art and design, decorative arts, and furniture categories grew 35% and 20%, respectively, during the first six months of 2025. Meanwhile, other categories suffered: post-war and contemporary art fell 19%, impressionist and modern art dropped 7.7%, and luxury sales were mostly flat. ArtTactic COO Lindsay Dewar attributed the decline in sales of impressionist and modern art to a more conservative, risk-averse approach to new acquisitions by buyers. Auction sales represent a small piece of the overall art market, but point to a more selective climate for art sales.