The art market is undergoing a profound transformation: at the beginning of June 2025 and after key events, dealers, collectors, and auction houses are reviewing strategies and costs.
The sector shows a demand correction both at auctions and in primary sales. In fact, auction houses and dealers are recording slower sales, while many galleries face pressure on fixed costs.
Objective signals
According to the Artnet Price Database, auction sales in the first half of 2025 amounted to $4.72 billion, with a contraction compared to the same period of the previous year and compared to 2022. Furthermore, the Art Basel/UBS report indicates that dealer sector sales have decreased, with annual sales amounting to $34.1 billion in 2024.
Testimonies and emblematic cases
The case of Clearing is symptomatic. The gallery had chosen, at the beginning of June 2025, to rent a villa in Basel instead of participating with a traditional booth at Art Basel. The owner Olivier Babin explained to Artnet that the operating costs were unsustainable: about $150,000 per month for two locations. Despite events and dinners, on August 7, 2025, Clearing announced its closure and the start of bankruptcy proceedings.
Babin said: “We did our best, but it’s not enough.”
Moreover, other well-known names announced or confirmed restructurings or closures in the summer of 2025, including Blum, Venus Over Manhattan, and Kasmin. Consequently, many operators define the situation as a phase of structural downsizing.
What collectors and advisors say
Alain Servais’s comment on Artnet is clear: “I do not believe at all that it is cyclical… It is structural. The infrastructure is too large.” On the other hand, Allan Schwartzman calls for caution and clarity: “It would be naive of us to expect infinite growth without any contraction.”
From the perspective of major buyers, Beth Rudin DeWoody stated: “I always look at art, but I refrain from collecting it,” indicating a decline in psychological and financial activity among the most influential collectors.
Why the numbers don’t add up for many galleries
Many galleries argue that the combination of high overheads and overly aggressive primary prices has made the model unsustainable. For example, Babin refused a $100,000 booth to choose a larger space, but the savings were not enough.
Furthermore, some galleries have to deal with very high rents: Babin was paying $53,560 per month for a space on Bowery, with insolvency disputes leading to claims for arrears, including a claim of $420,016 from the property owner.
Sector indicators
Other indices reinforce the reading of weakness. For example, Soho Art Materials has documented a decline in supplies for artists, with canvas production significantly reduced compared to the peaks of 2020-2022. Additionally, public accounts in the UK show very thin margins for certain galleries: Sadie Coles HQ reported sales of £28.6 million in 2024, compared to £59 million in 2023, with a net profit after taxes of £206,493, equivalent to about 0.7%.
Not everything is stagnant: where the market is still moving
However, the primary market is not entirely dead. Mathieu Templon observes: “Things are no longer the same, and all galleries are feeling it, but the market is not dead. When you have the right artist, the right works, there is a market for them.”
Indeed, some recent exhibitions have sold well. For example, in the described sales, works by Will Cotton were placed between $80,000 and $250,000, and at the fair, some emerging artists found buyers for works priced between €22,000 and €40,000.
Practical experience in the field
From an operational point of view, managing sales today requires more time in negotiation and greater attention to ancillary expenses. For example, previews and private dinners remain essential tools for gauging real interest before closing a deal. Additionally, auction estimates increasingly take into account the potential liquidity of the buyer and the risk of downward rebound.
In practical terms, the most agile dealers maintain lean staff and streamlined spaces. Therefore, seasonal or pop-up models, like those experimented in secondary locations, work better than fixed locations with high costs.
What to monitor in the coming seasons
- Liquidity of major collectors and their participation in fairs;
- Sales rate at openings in emerging galleries;
- Auction trends on top lots and emerging names;
- Public accounts of listed galleries or those subject to disclosure.
In summary, the sector is in transformation. While significant risks emerge on one hand, on the other, the contraction could favor a healthy normalization. Therefore, collectors and professionals must approach the market with more data, caution, and patience.
As expert in digital marketing, Amelia began working in the fintech sector in 2014 after writing her thesis on Bitcoin technology. Previously author for several international crypto-related magazines and CMO at Eidoo. She is now the co-founder and editor-in-chief of The Cryptonomist and Econique.
She is also a marketing teacher at Digital Coach in Milan and she published a book about NFTs for the Italian publishing house Mondadori, while she is also helping artists and company to entering in the sector. As advisor, Amelia is also involved in metaverse-related project such as The Nemesis and OVER.
