Music Industry Opinion: COO Neil Gibbons discussing the continued success of physical music production
The vinyl market in 2025 is experiencing a significant resurgence, with sales surpassing those of CDs and a global market valuation of approximately $1.63 billion. This growth is driven by a mix of nostalgia, appreciation for analog sound, and a resurgence among younger audiences.
Rough Trade has announced an expanded partnership with John Lewis, featuring a curated vinyl range in 23 stores. This partnership is a testament to the growing popularity of vinyl, as more retailers seek to capitalise on the demand for physical music formats.
Key Production, a notable vinyl manufacturer, reported a 50% surge in vinyl orders in 2025. This surge exemplifies the broader market trend towards increased vinyl production and consumption. The company is working around the clock to fill demand, reporting a 16% year-on-year increase and substantial incoming orders.
The trend of buying physical music formats is observed across all age groups, according to Censuswide research. 80% of fans buy physical music to support the artist, indicating a strong connection between fans and the artists they support.
Record Store Day 2025 delivered the best weekly sales for indie retailers in three decades. The number of participating stores increased to 278, demonstrating the cultural revival of independent record stores.
The vinyl industry continues to grow and expand, with new labels emerging to satisfy demand for limited-edition formats. Oasis, for instance, have five pop-up stores in the UK and one in Dublin, offering special vinyl editions to their dedicated fans.
However, there are questions about a potential slowing down of the appetite for physical music formats. According to recent BPI figures, vinyl sales are wobbling in 2025. Neil Gibbons, COO of Key Production, suggests that the industry should "look beyond the headline figures".
Fans are buying vinyl and CDs for both listening at home and the experience of owning something real. CDs, despite being a more portable format, still hold a robust market share. They are easy for artists to transport and carry home by fans.
In summary, the current state of the vinyl market in 2025 is one of sustained expansion, marked by rising sales volumes, expanding market revenue, and increasing cultural relevance. The industry continues to evolve, with new players and trends emerging, and the future looks promising for physical music formats.
The finance sector is recognizing the potential of the growing vinyl industry, with more investments flowing in to support its continued expansion. With the global market valuation of vinyl sales reaching approximately $1.63 billion, businesses are seeing music as an increasingly viable area of interest within entertainment.
In light of the sustained vinyl market growth and the growing demand for physical music formats, various entertainment companies are exploring opportunities to collaborate with vinyl manufacturers, such as Rough Trade's expanded partnership with John Lewis.
