Art Market Report Shows 4% Growth Amid Declining Buyer Interest and Geopolitical Concerns

According to the Art Basel and UBS Art Market Report, the art market in 2025 experienced a 4% increase, yet it is encountering significant obstacles. The number of average buyers per gallery reached its lowest point since 2021, with smaller galleries experiencing a 40% decline last year. An unnamed dealer pointed out a waning interest in art as digital screens take precedence over traditional images. Protectionist policies and potential U.S. tariffs are disrupting the movement of art, particularly in the contemporary market. Increased shipping and logistics expenses are affecting profit margins. Global instability, including the ongoing conflict in Iran, is impacting oil and stock market values. Despite these challenges, Clare McAndrew, the report's author, observed that gallery openings outnumbered closures in 2025 (42% to 25%). Noah Horowitz stressed the importance of strategic focus, while David Zwirner noted that reduced speculation is advantageous for emerging artists.