The physical music market is set for another boost with today’s Record Store Day Black Friday celebration (November 28).
This year’s collection features releases from Sam Fender & Olivia Dean, Fred Again.., Billie Eilish, Post Malone, Bruno Mars, Icona Pop & Charli XCX, Maribou State, Young Fathers and more than 100 artists across multiple genres.
The vinyl revival is still powering ahead, according to the latest figures from the BPI and Official Charts Company. Up to the end of the third quarter, vinyl sales were up 7.4% at 4,733,937 units.
This appreciation for physical music spans all age groups, with research showing even Generation Alpha are embracing physical music too.
Music Week has reported on how labels are targeting younger fans through Record Store Day.
The 2025 edition of the vinyl celebration delivered the strongest weekly sales for independent retailers in three decades, with participation rising to 278 stores.
It comes amid positive developments on the High Street. Two years ago, HMV reopened its flagship Oxford Street store, while more recently Rough Trade expanded its partnership with John Lewis to feature a curated vinyl range in 23 locations.
In a retail landscape where many High Street sectors are in decline, record stores stand out as a rare and thriving success story.
But where can physical music go from here? Key Production Group offers end-to-end manufacturing solutions in vinyl, CD, DVD, Blu-ray, cassettes, print and bespoke packaging, working with major and independent record labels as well as individual artists.
Karen Emanuel
Karen Emanuel, CEO and founder, has guided the company through major industry challenges, including the decline of physical formats, Brexit and the pandemic.
Julia Völkel is an account manager based in Hamburg, responsible for advising and managing European customers. Völkel has over 24 years of experience in physical media production.
Here, Key Production’s Karen Emanuel and Julia Völkel look ahead to the opportunities that await the physical music industry in 2026…
Packaging will become more innovative, and vinyl variants will continue to rise
Karen Emanuel: “Over the past year, we’ve seen a wave of bold and creative product designs – not least the Alpha Wolf box set (pictured, Half Living Things – SharpTone Records), for which the Key Production team received a joint Grammy nomination [Best Boxed Or Special Limited Edition Package in 2025 – art director Patrick Galvin]. The ‘Boombox Boxset’ comprises multiple formats, including vinyl, CD, cassette, as well as a booklet and NFC tag for extra digital content.
“Looking ahead, I expect even more experimentation with textures, effects and bonus features. Splatter vinyl, for example, was a standout element of the Alpha Wolf set, and it’s a format that has grown significantly in popularity. Consumer appetite for special editions has never been stronger; our own research revealed that 60% of buyers would purchase more if additional bespoke editions were available. With this in mind, I expect the market to keep expanding in 2026 as labels respond to this demand.”
Julia Völkel: “It’s clear that younger generations increasingly see vinyl as part of their broader musical experience. What’s striking is how much greater emphasis consumers now place on the visual impact of vinyl. In the 1990s, the sleeve was the main aesthetic feature, but today’s consumers want coloured vinyl, striking artwork and bonus content. This shift isn’t limited to one particular genre; colour variants and special editions appeal to rock and metal fans as much as enthusiastic pop and hip-hop listeners.
“Over the past year, we’ve seen growing demand for formats that combine physical products with digital content. A great example is Ed Sheeran’s exclusive Walmart vinyl, which gave fans access to his secret Instagram account. The fusion of physical and digital media, including SMART formats, is opening new ways for artists to connect more deeply with their fans – and I believe this trend will only continue to grow in the year ahead.
Film soundtracks will continue to thrive on vinyl, and gaming soundtracks are joining them
KE: “In 2024, the vinyl release of Saltburn’s soundtrack entered the UK charts, peaking at No.2 on the official vinyl albums chart. That momentum continued this year with the Wicked soundtrack, which set a new record for the biggest first-week vinyl sales of any musical soundtrack in the 21st century. This shows that the appetite for film soundtracks on vinyl remains strong, and I fully expect the trend to continue into 2026.
“Beyond film, however, a new and exciting development has been the rise of gaming soundtracks on vinyl. An eight-LP vinyl box set of The Legend of Zelda: Breath of the Wild soundtrack has been released by Nintendo in partnership with Laced Records. This is a major milestone as it’s the first time that a Nintendo game soundtrack has been released on vinyl outside of Japan. For us at Key Production, this is a particularly exciting area, and I think we’ll see even more growth here in the year ahead.”
Physical music still has plenty of untapped potential worldwide
Julia Völkel
Sustainability will move from trend to standard practice across the industry
KE: “In the past few years, we have seen a substantial market opportunity for eco-friendly vinyl records, and it’s been great to see mainstream artists leading on this agenda, with Coldplay re-releasing A Head Full of Dreams on vinyl made from recycled plastic bottles and Billie Eilish pressing Hit Me Hard And Soft on regrind and BioVinyl. These high-profile examples are helping to push sustainable practices into the spotlight, and we’ve seen this trickle down to consumers, who now expect a level of environmental responsibility in the products they buy. Looking ahead to 2026, I believe sustainable options will shift from being an alternative to becoming the norm.”
JV: “From a European perspective, this shift is already underway across the supply chain. Agencies, suppliers, manufacturers and labels are all gradually transitioning towards more environmentally conscious ways of working, and the cumulative effect is that the industry as a whole is becoming more eco-friendly. In 2026, I expect sustainability will no longer be seen as a niche trend but as a standard expectation across the physical music landscape.”
Smaller artists will increasingly embrace physical formats as a revenue stream
KE: “Over the past year, we’ve seen demand for vinyl continue to rise, but what’s particularly exciting is that the growth isn’t just coming from the biggest names in music. Increasingly, smaller artists are embracing physical formats as a reliable revenue stream. For these acts, vinyl, CDs and cassettes are no longer niche extras but vital products that fans want to buy.
“We’ve also seen merch stands making a real comeback, with artists bundling physical formats alongside T-shirts, posters and collectables. Fans are eager to take something tangible home, and physical formats provide that connection in a way streaming alone can’t. What stands out is that this isn’t a story of short-lived spikes from international artists – it’s about consistent, steady growth across a wide range of catalogues and artists. That breadth of demand is what makes physical formats so important, especially for emerging acts looking to sustain themselves and build stronger fan relationships.”
Increasingly, smaller artists are embracing physical formats as a reliable revenue stream
Karen Emanuel
JV: “At the same time, consumer behaviour has shifted in a way that plays directly into the hands of independent artists. Our research found that 75% of fans buy physical music specifically to support the artist, which opens a huge opportunity for smaller acts, especially in genres like hip-hop, rap, new rock and metal, where superfan culture is thriving. We’re seeing a rise in bespoke editions, box sets and multi-formatting, and these aren’t limited to global stars. In 2026, I expect physical releases to become an essential part of the strategy for emerging acts who want to build loyal audiences and increase fan engagement.”
Physical formats will thrive as younger fans seek screen-free experiences
KE: “I founded Key Production in 1990, so I witnessed the seismic shift when music sales went from physical units to digital downloads and have been at the forefront of the revival of physical music this past decade. What’s been exciting is the move away from the old stereotype of vinyl fans being only middle-aged collectors, towards a far more diverse group of buyers, including Generation Alpha. Our research shows that nearly half of this generation listen to CDs, and many know how to use both CD and record players.
“For listeners, physical music also offers something streaming can’t: a screen-free, immersive experience. In fact, 60% of consumers agree that physical music provides a different experience to streaming, and one in five parents say they prefer their children to listen to physical formats as part of a digital detox. Looking ahead, I believe younger listeners will continue to turn to physical music as a way to disconnect from screens.”
Smaller markets will drive the next wave of vinyl growth
JV: “One of the most interesting developments this past year has been the reawakening of smaller European markets through physical formats. Spain, for example, reported a 14.8% year-on-year increase in physical music revenue in the first half of 2025, reaching €17.4 million. What’s remarkable is that this growth was driven almost entirely by vinyl, which jumped 25.6% to €12 million and now makes up nearly 70% of all physical sales in Spain. Although physical formats still account for just over 10% of Spain’s total music market, the speed of growth highlights how quickly these so-called ‘overlooked’ markets can bounce back. Similarly, the Italian market grew 10% in 2025, with vinyl sales up by 17% and overall physical music sales increasing by 13% at €33.3m.
“My prediction is that in 2026, we’ll see similar patterns in other territories where vinyl was once considered absent or in decline, underlining the fact that physical music still has plenty of untapped potential worldwide.”
Subscribers can read our Karen Emanuel interview from the November edition of Music Week.