A comprehensive new study reveals that Germany's art gallery sector is grappling with significant challenges, including declining sales and an aging ownership structure that threatens the industry's future. The third nationwide study conducted by the Berlin-based Institute for Strategic Development (IFSE) surveyed 160 of Germany's approximately 700 professional galleries in 2024, providing crucial insights into the current state of the German art market.
While reports of a struggling art market have been circulating, the IFSE study offers a more nuanced picture of the challenges facing German galleries. The findings show that declining sales are indeed a concern, but other pressing issues weigh even more heavily on gallery owners' minds. According to IFSE Managing Director Hergen Wöbken, who presented the results, the situation reflects broader structural problems within the industry.
The global art market context provides important perspective for understanding Germany's position. According to the Art Basel UBS Art Market Report, international art sales volume dropped 12 percent from the previous year to $57.5 billion. However, transactions in the lower price segment actually increased by 3 percent to $40.5 million, a trend that aligns well with Germany's market characteristics.
Germany ranks fifth globally in the art market alongside Switzerland, trailing behind the United States, United Kingdom, China, and France. The country's strength lies in smaller, more numerous transactions rather than high-value mega-deals. This positioning reflects the nature of Germany's art market, which emphasizes cultural value and artistic diversity over pure commercial volume.
Despite this international standing, German galleries face significant financial pressures. The study reveals a dramatic decline in total revenue compared to 2020, when the institute conducted its previous comprehensive survey. The estimated total turnover for 2024 dropped to approximately 600 million euros, representing a substantial decrease from the 890 million euros calculated four years earlier.
The distribution of revenue across different market segments remained relatively stable, with 59 percent of galleries operating in the lower segment with revenues under 400,000 euros. The middle segment, encompassing galleries with revenues between 400,000 euros and 1.5 million euros, accounts for approximately 28 percent, while the upper segment of galleries earning over 1.5 million euros represents 13 percent of the market.
One of the most pressing concerns identified in the study is the aging demographic of gallery ownership. Many galleries established during the boom years of the 1990s, when art collecting and art discourse became fashionable, are now facing succession challenges. Wöbken noted that the golden era of the 1990s is definitively over, and today's galleries are suffering from an aging ownership structure. Remarkably, one-third of gallery owners plan to transfer ownership within the next five years.
This aging crisis mirrors problems that have plagued other sectors of German business, particularly medium-sized companies and family enterprises that ignored succession planning for too long. Wöbken warned that when a gallery closes, an entire small ecosystem collapses, affecting artists, collectors, and the broader cultural community.
The study also examined how galleries are adapting to contemporary cultural trends and technological developments. Interestingly, themes that dominate museums and biennials today—such as AI art, queerness, and activism—play a much smaller role in gallery programming. Personal relationships with collectors continue to outweigh social media strategies like Instagram, and artificial intelligence has barely made inroads into gallery operations.
However, the survey did reveal positive developments in terms of diversity and representation. The percentage of female artists represented by galleries increased by 6 percent since 2020, reaching 41 percent in 2024. This improvement suggests that galleries are making meaningful progress toward gender equality in artist representation, even if other diversity themes like queerness have been slower to gain traction.
Birgit Maria Sturm, Managing Director of the Federal Association of German Galleries and Art Dealers, which co-commissioned the study, highlighted the unique cultural contribution that galleries make to German society. She pointed to recent announcements by the Prussian Cultural Heritage Foundation regarding increased museum admission fees as an example of the broader financial pressures facing cultural institutions.
Wöbken emphasized that galleries, which traditionally offer free admission to their exhibitions, represent "Germany's most underestimated museums." This observation underscores the significant cultural value that galleries provide to communities while struggling with their own financial sustainability.
The study revealed mixed attitudes toward sustainability initiatives among gallery owners. Some gallerists responded with notable casualness to questions about environmental responsibility, arguing that their goods already resist consumption by nature—artworks are meant to be preserved and remain visible rather than consumed.
Germany's position as a cultural powerhouse is evident in its strong artistic productivity, diverse infrastructure, and high cultural standards. However, these advantages don't necessarily translate into financial success for galleries. The disconnect between cultural value and commercial viability represents one of the fundamental challenges facing the sector.
Looking ahead, the Institute for Strategic Development identifies several major challenges that will shape the future of German galleries. The end of the boom era, combined with succession planning difficulties and changing market dynamics, creates a complex landscape that will require innovative solutions and strategic thinking to navigate successfully.
