Mid-size galleries face existential crisis in polarized art market

The art market is increasingly divided between large galleries and new entrants, putting pressure on mid-sized galleries. According to the 2018 Art Basel and UBS Global Art Market Report by Clare McAndrew, global art sales totaled $63.7 billion in 2017, with galleries contributing 53% ($33.7 billion). While top galleries saw a 10% increase, those earning under $500,000 experienced a 4% decline. For the first time, gallery closures surpassed openings, with a ratio of 0.9 openings for each closure. Since 2007, new galleries have decreased by 87%. Mid-sized galleries are struggling with rising costs, limited credit access, and high art fair fees, which represent 46% of their sales. Online sales surged by 72% to $5.4 billion. Alain Servais envisions a luxury goods-style market within 5-10 years, promoting collaborative approaches and reduced fees.