AceShowbiz - The global recorded music industry continued its remarkable expansion in 2025, as revenues surged past the $31 billion mark for the first time, according to the International Federation of the Phonographic Industry's (IFPI) Global Music Report 2026. This marks the 11th consecutive year of growth in music sales worldwide.

According to the report released on March 18, 2026, total recorded music revenues climbed to an unprecedented $31.7 billion, driven primarily by the ongoing rise of paid streaming services and sustained investment from record labels in artists and innovative distribution methods.

Subscription streaming remained the dominant revenue stream, contributing nearly 70% of total recorded music income. Streaming revenues alone topped $22 billion in 2025, as the global number of paid streaming subscriptions increased to 837 million, up from 752 million just one year earlier.

The resurgence of physical formats was another notable trend in 2025. Vinyl sales led this comeback with a robust 13.7% increase, helping physical music formats grow by 8% after experiencing a 3% decline in 2024. Performance rights revenues also saw slight growth of 0.3%, reaching $2.9 billion. In contrast, synch income and digital downloads faced declines of 2% and 5%, respectively.

When examining regional performance, every global market reported revenue growth, with four regions experiencing double-digit increases. The United States maintained its status as the largest recorded music market, growing by 3.3% over the year, slightly higher than the 2.2% growth recorded in 2024. The U.S. accounted for 38.7% of the total global recorded music revenues, adding over $400 million during 2025.

Canada, which slipped one position to become the ninth-largest market globally, still posted solid revenue growth of 5.6%. However, the IFPI report did not provide detailed revenue breakdowns for all individual markets.

One of the biggest shifts in market rankings was China overtaking Germany to become the fourth-largest global music market in 2025. China demonstrated strong growth of 20.1%, continuing its streak of double-digit increases with previous years recording 28.4% growth in 2022, 25.9% in 2023, and 9.6% in 2024.

Japan, the world’s second-largest recorded music market, rebounded with an 8.9% increase in revenues in 2025. Asia overall remains the leading region for physical music sales globally.

Europe held onto its position as the second-largest music sales region, contributing 30.4% of total global revenues and growing by 5.6% in 2025. The continent recorded the second-highest growth rate worldwide. Key European markets all posted gains: the United Kingdom rose by 4.8%, Germany grew by 1.7%, and France saw an increase of 3.7%.

Among all regions, Latin America emerged as the fastest-growing market, with revenues soaring by 17.1%. The region now boasts two countries in the global top 10 music markets: Brazil at number eight and Mexico at number ten. Streaming constitutes a dominant share of Latin America’s recorded music revenues at 88.1%.

Compared to the previous year, when only eight out of the top ten markets recorded growth, 2025 saw all of the top ten markets posting year-over-year increases, highlighting broad-based global expansion.

The Middle East and North Africa (MENA) region tied as the second-fastest growing area, with a 15.2% increase in recorded music revenues. Streaming dominates this market as well, accounting for 97.5% of total revenues. In sub-Saharan Africa, South Africa remains the largest market, contributing 78.1% of the region’s revenues and growing 12.9% in 2025.

Australasia, while outside the top 10, experienced modest growth with revenues reaching $623 million, up 1.5%. Australia’s recorded music revenues grew by 1.2%, though it dropped two places in the global market rankings to 13th. New Zealand saw a 3.0% increase and accounted for 15.2% of the region’s total revenues.

In terms of individual artists, Taylor Swift was named the biggest-selling global artist for the fourth consecutive year, affirming her dominant position in the industry. The IFPI’s top five global artists for 2025 also include Stray Kids, Drake, The Weeknd, and Bad Bunny. The biggest-selling global single was ROSÉ and Bruno Mars’ "APT.", while Swift’s twelfth studio album, The Life of a Showgirl, led across all album formats.

Despite the industry’s success, IFPI highlighted a growing concern over streaming fraud. The rise of generative artificial intelligence has facilitated the creation of fake or manipulated content that artificially inflates streaming numbers, diverting revenue away from genuine artists and rightsholders.

Streaming manipulation is becoming increasingly sophisticated and difficult to detect. For example, in January 2026, the streaming service Deezer reported receiving over 60,000 fully AI-generated tracks daily, with 85% of streams on AI-generated music in 2025 classified as fraudulent—a 70% increase from the previous year.

In response, IFPI and its member organizations are actively pursuing legal actions to combat these fraudulent practices. Efforts to disrupt and shut down manipulation services have already seen success in multiple countries, including Germany, France, Norway, Brazil, and Canada, with additional cases underway.

Victoria Oakley, chief executive of IFPI, emphasized the positive impact of “great music from incredible artists,” backed by partnerships and investments from record companies, as a key force driving the global growth of the industry. She noted that more people than ever are paying to engage with music through paid streaming platforms worldwide, leading to greater financial returns for artists and reinvestment into diverse music communities.

Oakley also highlighted the importance of embracing technological advancements responsibly. She pointed to record company collaborations with generative AI developers who respect creator rights and explore how technology can enhance creativity rather than replace it. Oakley called on policymakers to uphold copyright laws that form the foundation for this progress.

As the music industry continues to expand globally, the IFPI Global Music Report 2026 underscores both the opportunities and challenges ahead. With record revenues, rising streaming adoption, and vibrant markets across all continents, the recorded music sector is thriving. At the same time, vigilance against emerging threats like streaming fraud will be essential to sustain long-term growth and fairness for artists worldwide.