As the art market navigates 2025, these themes highlight the industry's adaptability and resilience. By embracing change and fostering innovation, the art world is poised to thrive in an era defined by connectivity, sustainability, and inclusivity. For artists, collectors, and institutions alike, understanding these trends will be crucial to navigating the opportunities and challenges that lie ahead.

1. Donald Trump’s Return and Its Impact on the Art Market

Donald Trump. Photo by geralt. Image via Unsplash.

Donald Trump’s return to the U.S. presidency is undoubtedly set to define this year, and will certainly have implications for the art market. While Trump has yet to take office, there are signals from his previous presidency and 2024 campaign claims that can inform what to expect in this regard.

The first thing that springs to mind here is tax cuts. Trump’s 2017–21 presidency saw significant tax reductions for high-income tax brackets, unlocking disposable income and helping to fuel a stock market bull run throughout most of his term in office. On the campaign trail last year, Trump indicated that more tax cuts are set to come. More money to spend and the buyer confidence brought about by a robust stock market undoubtedly helped to boost luxury industries such as art, and may do so again.

Still, Trump’s tax policies were not universally positive for the U.S. art market: His administration eliminated a tax provision known as “1031 Exchange,” which had previously allowed collectors to defer capital gains taxes on art sales if they reinvested the proceeds into new artworks. These exchanges were viewed as a key factor in increased art market liquidity.

And, for the international art market, a more complicated picture of Trump’s presidency emerges. Trump has touted the use of tariffs on goods from foreign countries, which could make bringing art into the country more expensive and have far-reaching international implications. In 2017, for instance, Trump’s government levied a 25% import tariff on Chinese art and antiquities. While Trump has talked extensively about tariffs on the campaign trail, he hasn’t yet confirmed his plan for when he takes office.

Trump’s presidency could also impact those working in the art market. Immigration, which Trump has pledged to crack down on, could affect the ability of artists and arts professionals to move to the U.S. With cost-cutting frequently mentioned on Trump’s agenda, arts funding could also be in the president-elect’s crosshairs once more: In 2018 he pledged—but never succeeded—to eliminate the National Endowment for the Arts. Though it’s a small part of museums’ budgets—the NEA typically gives out around $5 million to museums nationwide in total annually—it would still have an effect.

2. Investment in Emerging Artists Gains Momentum

Investment in emerging art—works by artists at the start of their careers—is poised for continued growth this year as both collector and gallery interest intensifies.

According to the UBS and Art Basel Survey of Global Collecting 2024, high-net-worth individuals (HNWIs) allocated some 52% of their expenditure to works by new and emerging artists in 2023 and 2024, a rise of 8% from the previous edition of the survey. Works by artists new to the commercial market and not yet represented by a gallery, as well as by artists that had been showing in galleries or museums for under 10 years, also represented an increased share in HNWI collections compared to the same period.

Much of this is being driven by younger collectors entering the market who are attracted by emerging artists, whose works are often priced at more accessible levels. Gen Z respondents to the UBS and Art Basel survey said that some 55% of works in their art collections are by new and emerging artists. In Artsy’s Art Collector Insights 2024 report, 53% of younger collectors (aged 36 or younger) expressed the importance of having emerging artists in their collection versus 40% for older collectors.

This increased demand is being reflected in the sales strategies of galleries, too. In Artsy’s Art Industry Trends 2024 report, ultra-contemporary artists (those born in or after 1975)—which make up the vast majority of the emerging art world—were ranked by galleries as the most important segment for their businesses today.

Expect this trend to continue into 2025 as new—often younger—collectors build their collections at the most accessible end of the market.

3. Sustainability Takes Center Stage

Environmental concerns are reshaping the art market as sustainability becomes a priority for artists, institutions, and collectors alike. From eco-friendly materials to carbon-neutral shipping methods, the industry is finding creative ways to reduce its environmental impact. Initiatives promoting sustainable practices, such as energy-efficient exhibitions and the reduction of waste in art production, will play a significant role in 2025. Collectors, too, are increasingly seeking works that reflect ecological themes, fostering a deeper connection between art and environmental activism.

3. Expanding Global Influence

The art market is becoming more globalized, with emerging markets from Asia, Africa, and Latin America asserting their presence on the international stage. Artists from these regions are gaining recognition, and collectors are broadening their horizons to include diverse voices and perspectives. This globalization is driving a redefinition of artistic value, challenging traditional Western-centric narratives and fostering greater inclusivity in the art world.

4. Tech-Driven Personalization

Advancements in technology are enabling a more personalized art experience for collectors and enthusiasts. From AI-curated recommendations to virtual gallery tours, technology is bridging the gap between art and its audience. Online platforms are leveraging data analytics to tailor experiences, helping collectors discover works that align with their tastes and interests. This shift towards personalization is making the art market more accessible and engaging, particularly for younger, digitally native audiences.

5. Evolving Role of Galleries and Auction Houses

Traditional art institutions are redefining their roles in a rapidly changing market. Galleries and auction houses are adapting to the digital era by embracing online sales, hybrid events, and innovative exhibition models. As collectors demand greater transparency and convenience, these institutions are finding new ways to stay relevant. Collaboration with tech companies, increased use of social media, and enhanced digital marketing strategies are some of the ways they are evolving to meet contemporary expectations.

Trends That Will Redefine the Art Market in 2025