From Basquiat to Birkin bags, the truly wealthy are spending big

After a tumultuous two years, global art sales returned to growth in 2025. That is not only good news for artists, auction houses and dealers; it also bodes well for the market for the most expensive watches, designer clothes and bags. The high net worth crowd (or their retainers) who populate the auction rooms of Sotheby’s and Christie’s are the same people who breezily splurge on the finest consumer goods — war or no war. Picture someone watching the bidding for a Basquiat while decked out in Matthieu Blazy’s new Chanel creations. But just like the luxury market with which it is increasingly entwined, the recovery in art sales was driven largely by the top-end stuff, according to art economist Clare McAndrew’s latest state-of-the-industry report for Art Basel and UBS Group. Other categories remained more subdued. Why the ultra-wealthy are driving the 2025 art market recovery The superrich, particularly in the U.S., indulged in works by Gustav Klimt, Vincent van Gogh and their ilk that came to market during the year. In the broader luxury goods world, there’s been a similar reaching for the comfort of old favorites guaranteed to set you apart from the herd: think cashmere king Brunello Cucinelli or Birkin bag maker Hermès International. The appetite of American plutocrats for the finer things in life is helping to compensate for the continued caution of their Chinese peers. McAndrew, founder of Arts Economics, estimates that global art sales rose 4% in 2025 to $59.6 billion. And yet, neither this market nor the personal luxury goods sector — which Bain & Co estimates at about $410 billion for 2025 — can be sustained by selling only to the top 1%. They need to lure in the merely comfortable as well, not easy when the U.S. and Israeli war with Iran is raising the price of oil and the prospect of another bout of inflation. Trump tariffs and Middle East tensions cloud the high-end spending outlook Confidence crumbled in the first half of last year, too, as President Donald Trump unveiled his tariff onslaught and financial markets slumped. But sentiment improved, allowing for the sale of works from a few large collections, including that of Leonard A Lauder, the late Estée Lauder chairman. There was a clear separation between the top and bottom of the market, though. Auction sales of works valued at more than $10 million rose 30%, while sales of those worth less than $50,000 fell by 2% in value and volume. Klimt’s Bildnis Elisabeth Lederer (Portrait of Elisabeth Lederer), from Lauder’s collection, sold for $236.4 million in November. This was the biggest price ever achieved at auction after Leonardo da Vinci’s Salvator Mundi, which sold for $450.3 million in 2017. In the same month Van Gogh’s Piles de Romans Parisiens et Roses dans une Verre was sold for $62.7 million from the Cindy And Jay Pritzker Collection. Frida Kahlo’s El Sueno (La Cama) changed hands for $54.7 million, a record for a female artist at auction. It was similar in the dealer market, where the top strata of sales by value expanded by 3% after two years of decline, according to McAndrew. Why the $410 billion luxury market can’t thrive on the top 1% alone A few are trying to reach a broader client base. Some dealers have been carrying more accessible works to help people start collections. The smallest shops have been doing pretty well. Average sales values for dealers turning over less than $500,000 increased by a double-digit percentage last year, although higher value works may have skewed this. The market for firms turning over between $1 million and $10 million was stagnant. The art world’s elitist image doesn’t help in the hunt for diverse markets. An explosion of online sales in 2020 at the height of Covid did democratize the market a little. But this revenue source has dipped in the past three years. The unwise craze for non-fungible tokens, which effectively allow verifiably unique digital works by using blockchain technology, also fizzled out. The dubious merit of most of this stuff became too obvious to ignore. And it’s not just newfangled ways of buying art that people are shunning. There has also been a rebalancing of interest away from the so-called “ultra-contemporary” market, typically pieces created within the last 20 years. While this category led the art world’s post-pandemic recovery, 2025 was all about the impressionists, post-impressionists, old masters and modern art (usually held as the century leading up to the 1970s). In times of uncertainty, buyers reach for the artists and categories they know best. In 2021, at the peak of the ultra-contemporary clamor, some 21 recently created pieces each sold at auction for more than $10 million, led by Beeple’s Everydays: The first 5000 Days — a monumental digital collage — which sold for $69.3 million. Last year only three pieces from this period changed hands for more than $10 million, and at much lower prices. The trio included Maurizio Cattelan’s golden toilet sculpture, America, which went for $12.1 million. Art and fashion brands are merging — and targeting the same elite buyers There is clearly more to be done to tempt new collectors. Purists will be horrified, but one route is to partner with luxury brands, given the obvious customer crossover. Top fashion houses have the same desire to reach a broader audience with more affordable (though not cheap) fun products such as Jonathan Anderson’s new range of Dior bags and wallets that resemble books. In June, Sotheby’s and LA-based fashion brand Frame launched a limited-edition 31-piece clothing and accessories collection. As with many other areas of the economy, the nascent recovery in both the art market and the recent strength in U.S. luxury are now in question as a result of Trump’s policies in the Middle East — a repeat of what happened in spring 2025 when he unveiled his tariffs. The Gulf region itself accounts for a relatively small share of both markets. But there are individual lavish spenders there. Salvator Mundi was reportedly bought by a Saudi royal. How the luxury goods market mirrors the art world’s uneven rebound One concern for auction houses and dealers is the return of turmoil in the financial markets following the U.S. and Israeli attacks on Iran. This could dent the coffers of even the richest patrons, particularly in America where top-end purchases tend to be correlated with wider asset prices. The rich tend to be more affected by market shocks than changes in the cost of everyday items. People are also more inclined to buy non-essential goods when they’re happy and confident about the future. A Christie’s auction in May of works from the collection of late Conde Nast chairman Si Newhouse will be an indicator of where buyers stand. The dress code for this year’s Met Gala, also in May, is “Fashion Is Art.” That seems appropriate given the collision between two markets that are equally exposed to the White House’s political and economic whims. By Andrea Felsted This column reflects the personal views of the author and does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners. Andrea Felsted is a Bloomberg Opinion columnist covering consumer goods and the retail industry.

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From Basquiat to Birkin bags, the truly wealthy are spending big