IFPI Global Report 2026: Recorded music revenues surpass Ksh.4 trillion mark for first time

Global recorded music revenues reached USD 31.7 billion (approximately Ksh.4.1 trillion) in 2025. That’s according to the IFPI, the organization that represents the recording industry worldwide.

Figures released today (March 18) in IFPI’s Global Music Report 2026 show that global recorded music revenues grew by 6.4% YoY in 2025 – an improvement on the 4.7% rate of growth posted in 2024 — marking the global industry’s eleventh consecutive year of growth.

The report also shows that global recorded music revenues grew in every region, with double-digit growth in four regions, including Latin America, which was the fastest-growing region (17.1% YoY), the Middle East and North Africa (+15.2%), Sub-Saharan Africa (+15.2%), and Asia (+10.9).

IFPI’s report identifies paid subscription streaming as the key driver of growth globally.

Paid subscription streaming revenues increased 8.8% YoY and accounted for more than half — 52.4% — of global revenues. IFPI reports that there are now 837 million users of paid streaming subscription accounts globally.

Total streaming revenues (including both paid subscription and advertising-supported) surpassed USD $22 billion in 2025, and accounted for 69.6% of total recorded music revenues.

Elsewhere, IFPI reports that global physical formats returned to growth in 2025, with revenues increasing 8.0% YoY — “driven by enduring fan demand for tangible music experiences”.

Vinyl revenues rose by 13.7% YoY, marking the format’s 19th consecutive year of growth.

IFPI notes that physical revenue growth outpaced that of digital for only the second time on record, driven by a return to growth for the world’s largest physical market, Japan, alongside strong performance in several other markets globally.

Commenting on the release of the Global Music Report, Victoria Oakley, CEO, IFPI said: “Great music from incredible artists, aided by record company partnerships and investment, is driving global growth – with more people than ever before paying to engage with it on paid streaming services worldwide.

“Importantly, this growth means even greater financial returns for artists and reinvestment into an increasingly broad range of music communities worldwide.

“Music is embracing the future, demonstrated by record company partnerships with generative AI developers who respect the rights of creators. They are partners that explore how technology can be harnessed to support and enhance creativity, not replace it. We are asking policymakers to support this work by upholding the copyright laws that are the bedrock for this progress."

Performance rights revenues reached USD $2.9 billion in 2025, up by 0.3% YoY, marking the fifth successive year of revenue growth.

The IFPI’s numbers refer strictly to wholesale recorded music revenues (i.e. the money paid through to labels, distributors, and artists).

The world’s largest recorded music region increased revenues by 3.5% YoY in 2025, held a 38.7% share of global revenues, and added more than USD $400 million to global revenues.

The United States, the world’s single largest recorded music market, posted growth of 3.3% YoY according to IFPI’s figures — slightly higher than the RIAA‘s estimate of 3.1% published earlier this week.

Canada, which dropped down one ranking to become the ninth-largest market in 2025, saw revenue growth of 5.6% YoY

Europe maintained its position as the second-largest region and grew revenues by 5.6% YoY in 2025. The region added the second-highest revenue growth of all regions, contributing more than USD $500 million, and accounted for 30.4% of global revenues.

Asia saw strong improvement in growth in 2025, with double-digit growth of 10.9% YoY. The region maintained its status as the largest for physical revenues and accounted for 45.1% of global physical revenues in 2025.

The world’s second-largest recorded music market, Japan, returned to growth in 2025 (+8.9% YoY), while China overtook Germany to become the fourth-largest global market, with revenue growth of 20.1% YoY — the fastest-growing market in the Top 20.

Sub-Saharan Africa, the joint-second-fastest-growing region alongside the Middle East and North Africa, saw recorded music revenue growth of 15.2% YoY, reaching USD $120 million.

South Africa remained the largest market in the region, accounting for 78.1% of the region’s revenues, following 12.9% YoY growth in 2025.

IFPI’s report also highlighted two key themes shaping the industry’s next chapter: AI innovation and streaming fraud.

On AI, IFPI says record companies are at the forefront of the next generation of AI innovation, actively engaging in the development of music licensing models to generate revenue opportunities for artists — aiming to build an ecosystem where AI and human artistry thrive together.

On streaming fraud, IFPI warns that the industry faces an increasing threat from bad actors artificially generating plays for manipulated or fake content, siphoning vital revenues away from artists and others who power the music economy. IFPI is calling for organisations at every stage of the streaming value chain to take proactive steps to prevent, detect and act on fraudulent activity.