FAB Market Insights

While the stock markets are currently in turmoil due to Trump’s tariffs, a situation which changes daily and sometimes hourly, the art market breathed a sigh of relief last week when it emerged that artworks entering the US will be exempt from tariffs. While this may change, and existing import taxes into other countries remain (5% VAT in UK, 6% in Europe, higher in some other countries), the US tariff situation is hugely significant given that the US is the most important market for art, with 43% of sales by value.

Our clients have reacted in various ways to financial uncertainty – some have shown increased interest in allocating money to art acquisitions, while others are seeing how things play out. The New York auctions in May will be a big test. Fine Art Brokers continues to take consignments in from collectors wishing to sell, and to negotiate acquisitions for clients.

Claire McAndrew, author of the industry standard Art Market Report, recently wrote that the US “continued to dominate at the top of the auction market, with 36 of the 50 highest-priced lots in 2024 sold in New York, 73% of the sales value for works of over $10 million, and more than half of the value of $1 million-plus works sold. McAndrew’s full report can be read here.

She also noted that global art market sales reached an estimated $57.5 billion in 2024, an increase of 3%, but sales in the US declined by 9% to $24.8 billion, as political uncertainty surrounding the presidential elections and other factors contributed to continued slowing at the top of the market. This was its second year of falling values following a 10% decrease in 2023 but remaining 18% above the pandemic-induced low of 2020.

Interestingly, McAndrew also noted that the number of transactions taking place in the global art market grew by 3% to 40.5 million in 2024. reflecting greater activity in the lower-priced, more affordable segments for both dealers and auction houses. The UK reclaimed its position as the second-largest art market with an 18% share while China’s market share, including Mainland China and Hong Kong, dropped by 4% to third place with 15%.

McAndrew’s research revealed that 44% of the buyers that dealers sold to were new to their business in 2024, and the share of sales to new buyers increased to 38%. Also, Post-War and Contemporary art remained the largest sector of the fine art auction market in 2024, with a 52% share of global sales values and 54% by volume. The volume of transactions increased by 5% year-on-year, reaching their highest level to date. The representation of female artists among dealers continued to slowly increase to 41%, up by 6% on 2018.

Finally from McAndrew’s well researched and revealing report: “While the market has declined in value for two years, one of the most positive developments has been the growth of sales at the lower and more affordable prices. The number of artworks sold for prices in the sub-$50,000 range has expanded and there has been evidence of success by both dealers and auction houses in reaching new buyers, giving the market a broader and more diversified base for sales. Continuing to expand the market to wider audiences, including through the relatively unencumbered exchange of art across borders, will remain essential to its long-run growth.”

While the examples above showcase some of the most notable highlights, particularly at auction, it's important to remember that art is available at a wide range of price points. And also through many different sources – auctions are usually quoted because the prices are public. We advise clients at works valued from $10,000 and upwards, and are experienced in helping new collectors start their journey at a level comfortable for them.

Please contact us with your current interests in the art market, whether it is acquiring or selling.

Ray Waterhouse