The ups and downs of the vinyl market

In June 1948, Columbia Records held a press conference in New York to present the first “33 RPM” records ever produced. Since then, technological innovations have been countless, but this format is still here, and in its own way, it continues to influence the music industry. Discussing the “vinyl revival” has become a recurring ritual that has resurfaced cyclically for over a decade. Already in 2013, the head of sales at a vinyl production company told the New York Times: “The circle has closed. We have young people reaching out to us who listen to music on vinyl, and when we ask them why they don’t buy CDs, they reply: ‘That’s what my dad did – why should I?’” However, today the trend seems to have fully established itself, and the vinyl market has carved out a solid niche. Demand had been growing for some time and continued to rise even during and after the lockdown. The increasing demand for vinyl has also been met by major retailers like Amazon, which – as in other sectors – have seized the trend, including many more titles in their catalogs. This growth, naturally, has not gone unnoticed by record labels. Following the example set by independent labels and underground bands, even major labels have begun to capitalize on the renewed interest in vinyl, transforming it not only into a listening format but into a veritable collector's item. Limited editions, refined covers, colored records, or ones enriched with exclusive features: all these details have contributed to making vinyl a cult object, destined for the most devoted fans.

What Works and What Doesn’t in the Vinyl Industry

As reported by a report from South by Southwest (SXSW), in 2023 the United States saw a significant increase in vinyl and CD sales through D2C (direct-to-consumer) channels, bypassing intermediaries like physical stores or distribution platforms (e.g., Amazon). The increase, compared to the previous year, was over 27 percentage points. D2C vinyl and CD sales grew faster than the overall music market average, indicating a specific interest in physical formats purchased directly from artists or individual labels – a very positive sign for the sector. Furthermore, 60% of D2C sales concern recent music productions, not historical catalogs or reissues: meaning that fans are buying new releases above all, not just out of nostalgia. In 2024, rock enthusiasts (+8%) have shown a stronger preference for vinyl compared to fans of other genres. Additionally, according to another study by SXSW, 31% of Gen Z listeners would like more merchandising options from their favorite artists. In this sense, so-called "super fans" – the most passionate fans – are more inclined to purchase vinyl compared to general consumers. This trend is further confirmed by an interesting statistic: only 50% of vinyl buyers own a turntable. Indeed, these products are now considered cult objects, appreciated above all for their aesthetic beauty.

Yet many industry professionals are asking how economically sustainable the vinyl revival is in the long term. The growing attention from the public and major labels toward this format has not been matched by a development in the vinyl industry – which remains, in fact, artisanal. Producing vinyl requires time, expertise, and suitable machinery. Specifically, presses for mass-producing records are no longer manufactured: companies that produce vinyl are therefore forced to purchase used machines, mostly assembled around the 1970s. The last press was built in 1982: today, they cost about $25,000, while it is estimated that designing a new one would require a budget twenty times higher. Essentially, the vinyl industry cannot entirely keep up with growing demand. Additionally, the rise in inflation, which has impacted almost all economic sectors, including the music industry, has led to a significant increase in vinyl record prices. As a result, pressing plants have become more selective, waiting times have lengthened, and many small labels have decided to stop producing vinyl. This evident imbalance in the industry has meant that, particularly in the United States, several independent artists have stopped focusing on vinyl, rediscovering other alternative formats such as cassette tapes or CDs.