AceShowbiz - Despite a year marked by challenges such as the rise of generative AI songs entering charts and increasing streaming fraud, the global recorded music industry saw continued growth in 2025. According to the latest figures from the International Federation of the Phonographic Industry (IFPI), the music market expanded for the 11th consecutive year, surpassing the $30 billion revenue milestone for the first time. This growth was widespread, spanning key regions including the U.S., Canada, and Sub-Saharan Africa.

Subscription streaming remained the dominant revenue source in 2025, generating over half of the total global income. The number of paid streaming subscribers climbed to 837 million, a notable increase from 752 million just the previous year.

While the United States maintained its position as the largest music market globally, contributing 38.7% of total revenue, its growth rate of 3.3% lagged behind other major markets. Countries such as China, Mexico, and Brazil experienced double-digit revenue increases, underscoring the truly global nature of the music business today.

Here are six key insights from the IFPI’s 2026 Global Music Report.

1. Accelerated Revenue Growth Driven by Asia

After a slowdown in 2024, when global revenue growth dipped to 4.7%, the music industry rebounded in 2025 with a 6.4% increase. Much of this acceleration came from Asia, where recorded music revenue surged from 1.3% growth in 2024 to an impressive 10.9% in 2025. This uptick was largely propelled by significant gains in China and a resurgence in Japan, the world’s second-largest music market.

Japan, which remains highly dependent on physical music sales, saw growth rebound from a slight decline of -0.2% in 2024 to 8.9% last year. However, the country still faces cultural and structural challenges in expanding its digital music sector. Asia and the combined U.S./Canada region were the only two areas to experience increased growth momentum in 2025.

2. China Surpasses Germany as Fourth-Largest Market

China’s music market leapt ahead of Germany to claim the fourth spot among the world’s top 10 markets. The Chinese market grew by 20.1% in 2025, more than doubling its growth rate from the previous year. With a population nearing 1.4 billion, China represents a vast and relatively youthful audience, with considerable room to increase paying subscribers.

In addition to subscriber growth, China’s average revenue per user (ARPU) also rose, fueled by an increasing number of users opting for premium-priced tiers. Tencent Music, the country’s largest streaming platform operating Kugou Music, QQ Music, and Kuwo Music, reported a 12% increase in its super-premium “Super VIP” subscribers by mid-2025. These high-tier subscribers now account for roughly 15.7% of Tencent Music’s 127.4 million paying users, boosting overall streaming revenue.

3. Latin America’s Ongoing Expansion

Latin America continued its steady ascent in the global music landscape, marking its 16th consecutive year of revenue growth. Although growth slowed from 22.5% in 2024 to 17.1% in 2025, streaming now accounts for more than 88% of all recorded music revenue in the region.

Mexico remains a standout market, growing revenue by 13.3% and securing its place as the 10th largest recorded music market worldwide. This growth is fueled by the rising global popularity of Música Mexicana, which benefits from increased investment by record labels and easier cross-border streaming. As Tomas Rodriquez, president of Warner Music Mexico/Música Mexicana, noted, the genre’s long-standing appeal is now amplified by its ability to travel across borders more freely than before. The launch of a regional Mexican label by HYBE in September signals further expansion potential in the region.

Brazil, meanwhile, overtook Canada to become the eighth-largest recorded music market globally. Major U.S. labels’ investments have been instrumental in this growth, such as Sony Music’s acquisition of Som Livre in 2021 for over $250 million and Warner Music’s expanded presence in 2024. Additionally, Universal Music Group reported continued double-digit subscription growth in Brazil during its Q3 2025 results.

4. Physical Music Sales Outpace Digital Growth

In a rare shift, physical music revenue growth outpaced digital revenue for only the second time on record, rising 8% compared to digital’s 7.7% increase. This change was influenced by Japan’s physical market rebound, which reversed a 3.1% global decline in physical revenue the previous year.

The resurgence of physical formats can largely be attributed to vinyl’s sustained popularity. Vinyl revenue increased by 13.7% in 2025, partly due to higher prices and a growing trend of artists releasing multiple vinyl variants targeted at superfans. This strategy, which did not exist during vinyl’s peak in the 1970s and 1980s, is helping artists capture more revenue per release.

5. Artists’ Revenue Share Climbs

Artists’ share of recorded music revenue rose slightly from 34.8% in 2024 to 35.5% in 2025. This marks a significant increase over the last decade, as artists’ revenue share was just 31% in 2016. The trend reflects more favorable revenue splits for artists, who now enjoy greater control over where and how they release and finance their music. This increased leverage allows them to negotiate better deals within the industry.

6. The Growing Challenge of AI-Generated “Deepfake” Songs

During the IFPI report launch, Dennis Kooker, president of global digital business and U.S. sales at Sony Music, highlighted the rising problem of AI-generated “deepfake” songs. Sony has requested the removal of over 135,000 deepfake tracks from streaming platforms, many of which impersonate Sony artists such as Beyoncé, Harry Styles, and Queen.

Kooker explained that these deepfake tracks can cause significant harm by disrupting release campaigns or damaging an artist’s reputation. He described deepfakes as a demand-driven issue, noting they thrive when an artist is actively promoting new music. This exploitation detracts from the artist’s intended creative and commercial efforts, adding a complex challenge for the music industry to address.

As streaming continues to dominate music consumption worldwide, the industry faces the dual challenges of harnessing new technologies for growth while safeguarding the rights and revenues of artists and labels. The IFPI’s 2026 report underscores the dynamic and evolving nature of the global music market, with innovation, regional expansion, and emerging threats shaping its future trajectory.