Physical music media market trends

The physical media market is undergoing a transformation as traditional manufacturing faces challenges from streaming services, while specific formats experience a resurgence. While plant closures and reduced production capacity for CDs and DVDs have been prompted by shrinking order volumes, there is a growing interest in tangible music products among younger demographics.

In the United Kingdom, forecasts suggest vinyl may overtake CD sales by the end of 2026. However, in the United States, CD sales have recently outpaced vinyl growth, increasing by over 16 percent in the first half of the year. This growth is partially driven by K-pop releases and a broader cultural trend among Gen Z consumers.

This shift toward physical formats like CDs and vinyl, alongside a return to wired headphones and ‘dumb phones’, is being linked to a growing ‘AI fatigue’ among younger generations. Data suggests a preference for tangible experiences as consumers seek to disconnect from digital saturation and generative AI technology.