The Future of the Art Market: Tackling Key Challenges in 2025

In a recent panel discussion at Artlogic Connect ‘24 titled “Beyond the Election Day and Macro Challenges Facing the Art Market in 2025” gallery leaders explored the complexities of navigating a turbulent art market.

Moderated by Tim Schneider, founder of The Gray Market, the panel featured insights from Katey Acquaro, New York Director at Silverlens Gallery; Nick Olney, President of Kasmin Gallery; and Jasmin Tsou, Director of New York at Lisson Gallery, the conversation focused on adapting to macroeconomic shifts, evolving cultural dynamics, and the role of technological innovation in shaping the art trade.

Read on for a four-takeaway snapshot of the discussion, or watch on-demand now.

Acknowledging uncertainty to emphasize the gallery’s responsibility

With Trump’s second term looming, the panelists reflected on the political uncertainties facing the art market. Nick Olney acknowledged that the future of U.S. economic policies remains unclear, especially in terms of their impact on Kasmin Gallery’s operations, particularly in Asia: "A lot still remains unclear about which economic policies are going to be put in place," Olney explained, adding that the gallery's international strategy will require flexibility in the face of shifting political landscapes.

Jasmin Tsou, for her part, shifted the focus to the cultural role of art in times of political upheaval. "Art is perceived as the most elite community in the U.S.," she noted, emphasizing the responsibility galleries have to engage with broader societal issues, particularly in an era when art’s role within the community is under scrutiny.

Adapting to inflation

The rise of inflation has made it harder for galleries to balance operational costs with the pricing of artworks. Jasmin Tsou highlighted that while artists' works are often priced based on their career trajectories and market value, galleries are grappling with increasing overhead costs, especially in areas like shipping and materials. "You can’t price artworks in relation to overhead costs, but when inflation and costs rise higher than you can increase the value of the works, the business side of things becomes incredibly expensive," she said.

For Tsou, this discrepancy can create a perception of greed among clients, when in fact, rising costs are forcing galleries to adapt. The discussion underscored the delicate balance galleries must strike between financial sustainability and maintaining their relationship with artists and collectors.

 

"Everyone needs two categories of work: the exciting, risky stuff, and the practical stuff that could fit into someone's apartment."

 

Supporting artists

The panelists agreed that, despite the challenges, the core of the art market remains rooted in the needs of artists. Katey Acquaro emphasized the importance of supporting artists with both practical and aspirational work. "Everyone needs two categories of work: the exciting, risky stuff, and the practical stuff that could fit into someone's apartment," she explained.

By diversifying the types of work they showcase, galleries can help artists weather economic storms while also creating opportunities for collectors with different tastes and budgets.

Additionally, the panel highlighted the need for strong communication and clarity in gallery-artist relationships. "Contracts become so important to preserve the relationship and clarify terms," Acquaro added. Ultimately, ensuring that artists feel supported—both artistically and financially—is key to maintaining a thriving gallery ecosystem.

Embracing human connection

As the art world becomes increasingly digital, galleries are leveraging technology to stay connected with global audiences and support artists. The panelists discussed how platforms like Zoom have fundamentally reshaped the way galleries operate, making it easier to reach international markets and build relationships despite physical distance.

Acquaro shared how Silverlens Gallery’s expansion into New York during the chaos of the first Trump presidency was made possible, in part, by the digital infrastructure that connected artists and galleries worldwide. "Zoom connected the world, and that was huge for us," she said.

However, Nick Olney cautioned that while digital tools are essential, they cannot replace the value of in-person relationships. "Maintaining healthy human relationships is essential," he stated. So, in a time of technological innovation, galleries must find a balance between embracing digital tools and fostering authentic, personal connections within the art community.

Overall: flexibility and adaptability are key to thriving amid uncertainty

The overarching theme of the panel discussion was the importance of adaptability in an increasingly unpredictable world. From political turbulence to economic shifts and technological advances, the art market is facing a period of profound change.

The panelists all agreed that galleries need to remain flexible—ready to pivot in response to shifting conditions while staying true to their core values and mission.

As Tim Schneider succinctly put it, "This is a time of uncertain change, but there is also opportunity to be had if you’re willing to be creative and adaptable."

Galleries that can stay agile, support their artists, and maintain strong relationships with their communities will be best positioned to navigate the challenges ahead and seize the opportunities that come with change.

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