Vinyl becoming a Forever Format says Futuresource

Vinyl is on its way to becoming a ‘forever format’, safe from the whims of technology and fads. That’s the view of the market research specialist Futuresource. In its latest Vinyl Market Outlook report, analyst Alexandre Jornod predicts healthy levels of growth in the next few years, even as rival physical format CD declines.

According to market stats, the pandemic led to an additional growth spurt for the vinyl format. Consumer spending jumped 23 per cent to $1.7 billion, primarily achieved during the second half of 2020. Buyers have invested in new turntables, and looked to actively support artists who are driving new releases on the format.

The smart money suggests 2021 will be an even stronger year for vinyl, as enthusiasts return to record stores and attend concerts.

“Lockdowns have created particularly favourable market conditions for vinyl sales, with fans looking to engage with and support artists during a time without live events,” suggests Jornod. “Additionally, more artists and labels now want to release their music in vinyl, having witnessed consumers’ rising interest for the format. Some of them have developed their own direct to consumer channels, with vinyl sales helping to drive healthy revenues thanks to a higher retail price than any other music formats.”

The Futuresource pundit says this has created a virtuous circle, with more artists releasing in vinyl and a wider demographic being introduced to the format.

New releases from Ed Sheeran and Adele are expected to drive the global consumer spend on vinyl to $2.2 billion in 2021, according to Futuresource’s latest forecast. Currently, supply chain issues are constricting demand, with shortages of PVC, cardboard and paper, and limitations on global vinyl production capacity.

But vinyl isn’t just about Hi-Fi, says Jornod.

“More and more consumers are attracted to vinyl for what the format offers in terms of listening experience, but also due to the engagement with the artist and the lifestyle and community that comes with it. Vinyl has become more than just a music format, it is a key physical piece of fan merchandise that is increasingly resonating with fans in a digital world.”