Global vinyl market breaks the $3 billion barrier, but sustainability under the spotlight

The allure of vinyl albums continues to attract consumers, with new global figures from Futuresource Consulting showing a 13% increase in spend last year. This expansion has propelled the market through the $3 billion barrier, ending 2023 on $3.3 billion.

“Last year’s stellar performance was fuelled by releases from superstar artists such as Taylor Swift and the Rolling Stones,” says James Duvall, Principal Analyst, Futuresource Consulting. “But that’s only half the story. We’re also seeing a rising tide of younger audiences who are adopting the format as their own.

“Nevertheless, we did uncover signs of slowdown in the second half of 2023, notably linked to a smaller number of releases, and exacerbated by many artists being on tour. Although the start of 2024 shared similarities with the second half of 2023, we still expect to see almost 10% growth in value this year.”

Regional polarisation, yet clear opportunities ahead

Futuresource notes that consumer spend on vinyl remains heavily concentrated in North America and Western Europe. Together, these regions account for close to 90% of global sales.

Conversely, APAC and Latin America are digital-first regions, with a strong and growing appetite for streaming services. However, a thirst for vinyl is beginning to develop in these regions, as well as Africa, presenting the opportunity for another wave of growth.

Sustainability moving mainstream

“Now supply chain challenges are safely under control, sustainability is back under the spotlight,” says Duvall. “Many artists are now becoming ambassadors for a new movement focused on reducing the environmental impact of vinyl and the PVC it’s made from.

“In particular, Billie Eilish published a sustainability plan for her new album ‘Hit Me Hard and Soft’ released in May this year. This involved releasing multiple vinyl variants, all using either recycled PVC or eco-vinyl, with packaging that leveraged recycled materials and plant-based inks. Other musicians following suit include Liam Gallagher, John Squire and Tom Odell, with more artists expected to join the cause later in 2024.”

Vinyl builds differentiation in an all-digital world

With more than 100,000 songs being uploaded to streaming services every day, low streaming payouts, and the difficulty of standing out in an all-digital world, more artists are moving towards vinyl. It presents an opportunity to create more meaningful relationships with fans, promote intimate listening experiences, and drive significantly higher revenues per unit.

“Vinyl also plays a key role in release strategies. Not only is it available to pre-order, but it can be presented in a choice of colourways, as a collectable artwork series, with limited editions and store exclusives. This sense of individualism can engage audiences, lead to multiple purchases and boost sales. As a result, vinyl will be with us for a long time to come.”

Futuresource Consulting’s Global Vinyl Market Outlook report assesses the current state of the market, including key trends, supply chain and consumer insights, and provides an outlook on the shape of the sector during the next five years. For more information or to make a purchase, please contact Luke at luke.brodin@futuresource-hq.com.

About the author

James Duvall

James Duvall joined Futuresource as the Principal Analyst for Entertainment in November 2022. He is responsible for the delivery of all consumer research and projects across Home Entertainment, covering over twenty regions for Futuresource’s Video Insight reports, the bi-annual Living with Digital survey, and the bi-annual Music Streaming report. Before Futuresource, James spent six years leading the insight and research programme at the British Association of Screen Entertainment and the Digital Entertainment Group International (DEGI), building upon his wealth of experience within insight teams for US Studios.