The Dealer Sector in 2023
After experiencing two years of growth and recovery, the dealer sector saw a slowdown in 2023, with aggregate sales values estimated to have decreased by 3% year-on-year to just under $36.1 billion. This period showed mixed performance across different market segments. Despite a 20% drop in sales during the pandemic in 2020, the sector proved resilient, bouncing back in 2021 as dealers adapted to new operational methods and increased digital sales. The exhibition and fair calendar's return to a fuller schedule in 2022 led to a 7% growth, restoring the market to its pre-pandemic value in 2019. High-end dealers drove much of this recovery, while smaller dealers struggled with slower sales and rising costs. In 2023, geopolitical crises and economic uncertainty led to slower sales at the top end, resulting in more stagnant overall results, despite active lower price points.
For this analysis, the dealer and gallery market includes businesses trading in fine art, decorative art, antiques, and antiquities. Due to the private nature of dealer sales and limited publicly available data, surveys serve as the primary guide to year-on-year trends. Arts Economics conducted an annual survey of dealers globally in December 2023, covering around 60 regional or national markets with over 1,600 responses. The global dealer sector is estimated to comprise nearly 300,000 businesses, ranging from sole traders to multinational companies operating in both primary and secondary markets for art and antiques. The survey primarily sampled established businesses, often members of dealer and gallery associations or participants in art fairs, which tends to exclude smaller businesses and sole traders.
The survey indicated that 51% of respondents were based in Europe (with 21% from the UK and 17% each from France and Germany), 20% in Asia, 23% in North America, and 4% in South and Central America. In 2023, dealers continued experimenting with new business models, including permanent structures and those created for specific projects. However, the most common model was operating from a traditional, physical gallery (77% of respondents, down 3% year-on-year). The rest operated from shops, warehouses, offices (14%), or online-only businesses (9%).
Most dealers (81%) operated from one region or market, down from 85% in 2022. This shift is driven by some dealers expanding into multiple global locations to access new collectors and expand the geographical reach of their exhibitions and sales. In 2023, 9% of respondents operated without a physical premises, up from 6% in 2022.
Despite increased rents and operating costs over the past two years, some dealers have expanded their physical presence globally. Notable expansions in 2023 included new openings by Peres Projects and White Cube in Seoul, Marian Goodman in Los Angeles, Stephen Friedman Gallery in New York, and several galleries in Paris and London. However, there were also notable closures, such as Cheim & Read and Washburn Gallery in New York, and Simon Lee and Fold Galleries in London. Despite these challenges, the number of commercial art dealer businesses has remained stable or increased in major markets.
The majority of respondents (82%) operated in the fine art market, with 18% in decorative art, antiques, or antiquities. Among fine art dealers, 47% worked in the primary market, 12% in the secondary market, and 41% in both. Contemporary art (artists born after 1945) accounted for the largest share (40%) of sectors reported, followed by Post-War art (artists born between 1910 and 1945) at 14%. Most dealers (62%) specialized in a single sector, with 47% dealing only in Contemporary art. However, some dealers operated across multiple sectors, driven by supply challenges and changing buyer demands.
In 2023, over half (63%) of dealers reported annual sales of less than $1 million, consistent with 2022. A notable 7% reported sales over $10 million, and 35% had sales under $250,000. The average period in operation for these businesses was 28 years, with just over half (53%) in business for more than 20 years. Despite the challenges of the pandemic, 5% of galleries in the sample started in the last three years, mainly dealing in Contemporary art.
