A comprehensive new survey has revealed that art galleries worldwide are increasingly frustrated with the escalating costs and financial risks associated with participating in art fairs, despite these events remaining crucial for business development. The study, conducted by First Thursday, a London-based sales intelligence company, found that galleries are calling the current art fair model unsustainable while still participating in an average of four fairs per year.
The inaugural Art Fair Report surveyed 56 commercial galleries across Europe, Asia, Africa, and North America, with some interviews conducted directly on the floors of major art fairs including Frieze, Art Basel, Independent, TEFAF, and Art SG. The findings paint a picture of an industry grappling with mounting financial pressures that threaten the viability of smaller and emerging galleries.
The financial burden of art fair participation has reached alarming levels, according to the survey results. Nearly half of the galleries surveyed (46 percent) reported spending over $40,000 to attend a single fair, while nearly one in five galleries (24 percent) spent between $66,000 and $133,000 per event. These substantial costs have created significant challenges for gallery operations and strategic planning.
The survey identified high participation costs as the most significant obstacle to fair participation, with 83 percent of respondents citing this as their biggest challenge. Close behind, 77 percent of galleries pointed to the uncertainty of sales as the second-most pressing concern, creating a perfect storm of high investment with unpredictable returns.
Gallery professionals expressed their concerns candidly in the survey responses. "The model feels unsustainable at present," one gallerist stated. Another respondent highlighted the paradoxical nature of fair participation, explaining that "high participation fees force galleries to play it safe, but younger galleries only make it in if they propose more daring presentations and therefore bear all the [financial] risk." This creates a particularly challenging environment for emerging galleries, which "need to sell a lot of works to cover their expenses."
In response to these mounting pressures, galleries are fundamentally reconsidering their participation strategies. The survey found that 31 percent of respondents plan to attend fewer fairs in the future, choosing instead to focus their resources more strategically. Rather than expanding their fair presence, many galleries are opting to streamline their schedules and concentrate on a smaller number of key events where they believe returns will be most favorable.
Some galleries are also shifting their investment priorities toward digital alternatives. The report noted that galleries are increasingly allocating resources to digital platforms, social media marketing, and online sales tools as they seek more cost-effective ways to reach potential collectors and expand their audience base.
The survey demographics revealed that more than half of the participating galleries (57 percent) had been operating for more than 10 years, suggesting that even established businesses are feeling the financial strain. The majority of galleries focus on representing emerging artists (77 percent) and mid-career artists (72 percent), rather than late-career or estate artists (25 percent), which may contribute to the financial pressures as these artists typically command lower prices.
Despite the challenges, galleries surveyed attended an average of 4.4 art fairs per year, with only 9 percent participating in 10 or more events annually. This suggests that most galleries are already being selective about their fair participation, yet still find the current model financially challenging.
Galleries have specific requests for how art fairs could better serve their needs and improve the sustainability of the model. Survey respondents called for lower participation and production costs, more flexible booth arrangements such as split booth options or commission-based pricing models, and enhanced VIP and collector engagement services. They particularly want curated introductions to potential buyers and improved tools to help convert initial interest generated at fairs into actual sales after the events conclude.
Interestingly, despite the financial challenges, the vast majority of galleries (71 percent) still view exposure to new audiences as the most valuable aspect of art fair participation. This benefit outranked both sales and revenue generation (57 percent) and networking opportunities with collectors (57 percent) as primary motivations for continued participation.
The survey also revealed that many galleries are still relying on outdated methods for managing potential sales leads and client relationships. Despite the digital age and the popularity of online art sales, 83 percent of galleries continue to use traditional pen-and-paper methods to record inquiries at their booths, while 60 percent still rely primarily on business cards for networking. Only 31 percent of surveyed galleries immediately enter leads into customer relationship management (CRM) systems, suggesting significant room for improvement in sales follow-up processes.
This technological gap may be contributing to galleries' struggles to maximize returns on their substantial fair investments. The combination of high costs, uncertain sales outcomes, and inefficient lead management creates a challenging environment that many gallery professionals now consider unsustainable in its current form. As the art market continues to evolve, galleries and fair organizers will need to work together to develop more viable models that support both emerging and established galleries while maintaining the valuable networking and exposure opportunities that make art fairs essential to the contemporary art ecosystem.
