Art Dealers and Galleries
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 4,400 art dealers, galleries, and auction houses in the US generate revenue by selling artwork or earning commissions from consignments. With a consignment sale, the dealer earns a commission based on a percentage of the purchase price. Auction houses earn commissions based on the hammer (sale) price. Primary-market dealers develop relationships with promising new artists and help establish a market for their work. Secondary-market dealers specialize in art for resale on behalf of collectors, institutions and estates.
Long Sales Cycle, Slow Moving Inventory
Art dealers and galleries often have significant investments in inventory, with no indications of a quick return.
Vulnerability to the Economy
Demand for art is sensitive to economic conditions, and drops during periods of uncertainty.
Industry size & Structure
The average art dealer operates out of a single location, employs 4 workers, and generates over $2 million annually.
- The art dealer, gallery, and auction industry consists of about 4,400 companies that employ about 18,800 workers and generate about $10 billion annually.
- The industry is concentrated; the top 20 firms account for 49% of sales.
- Large companies, which include the Gagosian Gallery, David Zwirner Gallery, and The Pace Gallery, generally have a limited number of locations (ten or less) and often have international operations. The industry includes auction houses, such as Sotheby's.
- Post-war and contemporary art accounts for 53% of global art trade, according to The Art Market report.
Industry Forecast
Art Dealers and Galleries Industry Growth
Recent Developments
Jan 21, 2025 - NFT Sales Decline
- Art-related NFT (nonfungible token) sales have fallen dramatically since 2021, declining from $232 million at auction in 2021 to $9 million in 2024, according to a report in Artprice.com. The volume of art-related NFT sales has increased during the period, from 316 NFTs sold in 2021 to 350 NFTs sold in 2024. The sale of the first art-related NFT at Christie’s for $69.3 million took place in 2021, and many art sellers adopted new strategies to attract NFT buyers in the emerging digital art market. The US is the most active NFT sales country, accounting for 93% of global sales of NFTs in 2024 and an auction total of $8.9 million. According to the report, the art-related NFT market is settling into a sustainable realistic rhythm, with a more stable foundation to build a solid market base.
- Economic activity in the services sector expanded in December 2024 for the sixth consecutive month, according to the Services ISM Report on Business. The Services PMI registered 54.1% in December, up 2 percentage points from November. Nine of the 18 services industries reported growth in December, including the Arts, Entertainment & Recreation; Retail Trade; and Wholesale Trade industries. Employment by art dealers declined 8.9% in October 2024 compared to a year ago, per the Bureau of Labor Statistics (BLS). Average wages for nonsupervisory employees at other miscellaneous retailers were 4.3% higher in October 2024 compared to a year ago, reaching $22.61 per hour, per the BLS.
- The art world is gearing up for a second Donald Trump presidency, after enduring several challenges during his first administration, according to several art publications. During his first administration, Trump called for the elimination of the National Endowment for the Arts in his 2018 and 2021 budgets and targeted the funding for other arts and cultural organizations, according to ART News. Another proposal during Trump’s first administration was to target Chinese art and antiquities with a 25-percent import tariff, according to ArtNet. Modifications to other regulations could also affect the art market. For example, a change made by the Trump administration in the 2018 Tax Cuts and Jobs Act eliminated a tax loophole for art collectors.
- Consumer confidence levels declined in December 2024, falling by 8.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.7 in December 2024 from 112.8 in November 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years.” Purchasing plans for homes decreased while plans to buy new cars and big-ticket items rose in December 2024 on a six-month average basis.
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