Global recorded music revenues reached USD 31.7 billion (approximately Ksh. 4.1 trillion) in 2025, according to the IFPI’s Global Music Report 2026, marking the industry’s eleventh consecutive year of growth. The figure represents a 6.4% year-on-year increase, up from 4.7% growth in 2024.
The report shows revenue growth across every region, with double-digit growth in four markets: Latin America (+17.1%), the Middle East and North Africa (+15.2%), Sub-Saharan Africa (+15.2%), and Asia (+10.9%). Paid subscription streaming was identified as the key driver of global growth, increasing 8.8% YoY and accounting for more than half (52.4%) of total revenues. Total streaming, including both paid and ad-supported, surpassed USD 22 billion, representing 69.6% of global recorded music revenue, with 837 million paid streaming subscribers worldwide.
Physical formats returned to growth in 2025, rising 8.0% YoY, driven by continued fan demand for tangible music experiences. Vinyl sales rose by 13.7% YoY, marking 19 consecutive years of growth. IFPI noted that physical revenue growth outpaced digital for only the second time on record, led by Japan’s resurgence as the world’s largest physical market.
Victoria Oakley, CEO of IFPI, commented:
“Great music from incredible artists, aided by record company partnerships and investment, is driving global growth – with more people than ever paying to engage with it on paid streaming services worldwide. This growth translates to greater financial returns for artists and reinvestment into music communities globally. Record company partnerships with generative AI developers are exploring how technology can enhance creativity while respecting creator rights.”
Performance rights revenues grew modestly to USD 2.9 billion, marking the fifth consecutive year of growth.
The United States, the largest recorded music market, posted 3.3% YoY growth, contributing over USD 400 million to global revenues and accounting for 38.7% of the global total. Europe maintained its position as the second-largest region, growing 5.6% YoY and adding more than USD 500 million in revenue. Asia saw double-digit growth of 10.9%, remaining the largest region for physical music sales and generating 45.1% of global physical revenues.
Japan returned to growth (+8.9% YoY), while China overtook Germany to become the fourth-largest global market, posting 20.1% YoY growth the fastest among the Top 20. Sub-Saharan Africa recorded USD 120 million in revenues, with South Africa representing 78.1% of the region’s total.
IFPI highlighted two emerging industry themes: AI innovation and streaming fraud. Record companies are developing music licensing models to integrate AI with human artistry, while simultaneously addressing threats from artificial streams that siphon revenue from artists and the broader music economy.
The report emphasizes that sustained investment, innovation, and vigilance against fraudulent practices are critical to ensuring continued growth and fair returns for creators worldwide.
