Even with single bananas getting auctioned off for US$6.2 million, it’s been a rough couple years for the fine art market.
What happened: Recent filings show Sotheby’s losses more than doubled last year to US$248 million, as the once-dominant auction house was dragged down by a slump in the global fine art market.
- The picture’s been the same this year. Total auction sales across Sotheby’s, Christie’s, and Phillips dropped 6% in the first half of 2025 from the same period in 2024, marking the third straight year of declines.
Why it’s happening: Fine art demand has historically moved in lockstep with global wealth, but that trend appears to be breaking. Although personal wealth is at an all-time high, generational shifts in both cash and taste mean less demand for dated 20th-century oil paintings.
- Baby Boomers, who have long been the industry’s biggest spenders, aren’t buying as much art. Instead, they’re passing on their collections to their reluctant children or grandchildren.
- Millennial and Gen Z connoisseurs still like buying stuff, but they’re bidding on collectibles they’re passionate about like jewelry, sneakers, luxury cars, and Hermès bags.
Bottom line: With over $100 trillion set to shift from Boomers to younger generations, it might not be long until auction houses like Sotheby’s are selling more Pokémon cards than Monets.—LA