Surveying Art Galleries Reveals Unsustainability of Fair Model, Majority Engaging in Four Fairs Annually
Struggling Galleries Question the Future of Art Fairs
The art world is facing a significant challenge, as many galleries are finding it increasingly difficult to participate in art fairs due to financial and sustainability concerns. According to First Thursday's inaugural Art Fair Report, these challenges are reflected in the broader sector, with economic and operational pressures mounting.
The report, published by First Thursday, a sales intelligence company based in London, highlights the financial unsustainability of the art fair model for galleries. Emerging galleries, in particular, need to sell a large number of works to cover their expenses, and the majority of galleries focus on emerging and mid-career artists, rather than late-career or estate artists.
One of the key reasons for this financial strain is the high participation fees associated with art fairs. These fees, combined with the logistical complexity and the need to present commercially viable works, create significant strain for galleries. In fact, high participation costs were cited as the biggest challenge by 83% of respondents in attending art fairs.
The uncertainty of sales is another major concern for galleries, with 77% of respondents citing it as a challenge. As a result, some galleries are choosing to attend fewer art fairs due to high costs and the uncertainty about sales.
Despite these challenges, galleries continue to see value in art fairs. Exposure to new audiences is the most valuable part of participating in art fairs for 71% of respondents, followed by sales and revenue generation (57%) and networking with collectors (57%). Galleries attend an average of 4.4 art fairs per year, with only 9% attending 10 or more.
In an effort to address these challenges, galleries want fairs to lower participation and production costs, offer more flexible formats like split booths or commission-based models, and improve VIP and collector engagement.
One gallerist expressed concern that the current model of art fairs feels unsustainable. To address this, some galleries are focusing on a smaller number of key fairs where they believe the return will be best.
Despite the financial burdens, galleries continue to play a crucial role in the art world. With a focus on emerging and mid-career artists, they provide a platform for new talent to be discovered and showcased. However, it is clear that the art fair model needs to evolve to better support these galleries and ensure their long-term viability.
References:
- Art Market Monitor
- The Art Newspaper
- First Thursday Art Fair Report
- Artforum
- Artnet News
- Struggling galleries are querying the viability of the art fair model due to financial constraints, stemming from high participation fees and operational pressures.
- In the report by First Thursday, it was highlighted that emerging and mid-career galleries need to sell a substantial number of artworks to cover their expenses at art fairs, where the focus is on showcasing emerging and mid-career artists.
- However, despite these financial challenges, galleries still see value in art fairs, with exposure to new audiences, sales, and networking opportunities being key benefits.
- To tackle these difficulties, galleries are advocating for lower participation costs, more flexible formats, and improved engagement with collectors to better support their long-term sustainability within the art industry.
