Thriving Design Market fueled by escalating consumer demand and price undershooting of the past
In a surprising turn of events, the design category within the art market is outperforming expectations, bucking the trend of contraction and hesitation in the traditional fine art sector. Despite concerns about new tariffs, the design sector continues to flourish, maintaining sustained activity and interest.
One of the key factors behind this outperformance is the shift in collector behaviour. While mega-sales of artworks priced above $10 million have declined, there has been an increase in transaction volume at lower price points, where design objects often fit. This volume compensates for some of the high-end stagnation.
The expanding global creative industries also play a significant role. The broader creative industries market, including design, is projected to grow steadily at a compound annual growth rate (CAGR) of 4.29% from 2025 to 2033. This growth reflects rising demand and expanding consumer interest in design-related products and experiences.
Curatorial sharpness and market confidence at art fairs also contribute to the design category's success. Events like Art Basel 2025 have shown a mix of strong sales in blue-chip contemporary works alongside innovative design presentations, reflecting collectors’ continued appetite for diverse and culturally relevant pieces.
Psychological market factors may also be at play. The fine art market faces a psychological downturn, with uncertainty, fatigue, and a need to reset. However, design, often perceived as more accessible and functional, may be less impacted by these factors, allowing it to maintain or even grow its market presence amid new tariffs and economic caution.
Notable sales in the design category include the Frank Lloyd Wright's Double-Pedestal Lamp from the Susan Lawrence Dana House, which sold for $7.5 million at Sotheby's modern evening sale, exceeding its $3 million-$5 million estimate. Another standout sale was Grand Rhinocéros II by François-Xavier Lalanne, which fetched $16.4 million at Sotheby's design sale on June 11, his second-highest price at auction.
Art institutions have also been actively acquiring design works. Curators from multiple departments have collaborated to acquire design works at institutions like the Art Institute of Chicago and LACMA. For instance, Marcin Rusak's Van Florum 23 (Hybridae Florales) was acquired by the High Museum of Art in Atlanta last year.
Moreover, the design category has attracted a new generation of collectors. Millennial and Gen Z collectors made up 20% of bidders at Phillips design sales this year. Art dealer Ben Brown noted that at least half the people he sold Les Lalanne works to last year are younger than him.
The Cincinnati Art Museum also joined the bandwagon, acquiring Spanish artist Nacho Carbonell's One-Seater Concrete Tree (2022) for its outdoor sculpture garden in 2023.
Sotheby's design sales in New York totaled $37.5 million, Christie's totaled $23.6 million, and Phillips brought in $4 million. These figures highlight the continued demand and interest in the design category, even in the face of economic uncertainties.
In conclusion, the design category's relative affordability, growing global market interest, and appeal as a fresh, functional art form help it outperform expectations in the current challenging art market environment, even as tariffs and economic headwinds weigh on the more traditional high-end art sector. The upcoming exhibition on Les Lalanne, René Magritte, and Surrealism at Ben Brown's gallery is expected to further enhance understanding and appreciation of this intriguing category.
[1] Artnet News. (2025, June 15). The Design Market is Thriving Despite Economic Headwinds. Retrieved from https://www.artnet.com/news/market/design-market-thriving-despite-economic-headwinds-5276874 [2] The Art Newspaper. (2025, June 12). Art Basel 2025: The Design Market Shines. Retrieved from https://www.theartnewspaper.com/news/art-basel-2025-the-design-market-shines [3] Artforum. (2025, June 10). The Rise of the Design Market. Retrieved from https://www.artforum.com/market/the-rise-of-the-design-market-111340 [4] Statista. (2025). Global Creative Industries Market Growth. Retrieved from https://www.statista.com/outlook/3701000/creative-industries/worldwide
- The design market, contrary to the traditional fine art sector, is experiencing growth, outperforming expectations due to increased collector interest and a shift in buying behavior.
- The creative industries market, encompassing design, is projected to grow at a CAGR of 4.29% from 2025 to 2033, indicating a steadily rising demand for design-related products and experiences.
- Art fairs, such as Art Basel 2025, have shown a combination of strong sales in blue-chip contemporary works and innovative design presentations, reflecting collectors' continued appetite for diverse and culturally relevant pieces.
- While the fine art market may be struggling psychologically due to uncertainty, fatigue, and a need to reset, design, perceived as more accessible and functional, may be less impacted, maintaining or growing its market presence.
- Notable design sales include Frank Lloyd Wright's Double-Pedestal Lamp and François-Xavier Lalanne's Grand Rhinocéros II, which fetched high prices at Sotheby's auction.
- Art institutions like the Art Institute of Chicago, LACMA, and High Museum of Art have been actively acquiring design works, such as Marcin Rusak's Van Florum 23 (Hybridae Florales).
- A new generation of collectors, including Millennials and Gen Z, are showing increased interest in the design market, making up 20% of bidders at Phillips design sales this year.
- Despite economic uncertainties, design sales at major auction houses like Sotheby's, Christie's, and Phillips have remained strong, highlighting the continued demand and interest in the design category.
