Global Merchandise Market to Hit $16.3 Billion by 2030 — But Annual Growth Slows to 1.6%

London - Oct. 24, 2024— The global merchandise market, encompassing both digital and physical merchandise as well as physical music, is forecasted to grow to $16.3 billion by 2030, according to a new study by MIDiA Research titled “Music merchandise demand”. However, the report highlights that after the past few years of sporadic growth — driven by the post-pandemic surge, vinyl revival, and other factors — the market is already beginning to settle. Thus, annual revenue growth is expected to decelerate, with a projected rate of just 1.6% by 2030 as the market reaches maturity. 

Many Millennial and Gen Z consumers, who drive the vinyl revival, purchase vinyl records and CDs not only for music consumption but — and perhaps more so — as collectible items to display. The report notes that 2024 marks a peak in "merch fever", with record labels increasingly relying on expanded rights, including merchandise, as a key revenue stream.

"As the market has become more sophisticated, fan expectations for quality have risen," said Tatiana Cirisano, Senior Music Analyst and Consultant at MIDiA Research. "But record labels focusing on monetising fandom risk 'overharvesting' — exploiting this resource to the point of diminishing returns. The future lies in fostering fandom that fuels sustainable merch purchasing."

The study also revealed that approximately one-quarter of merchandise purchasing behaviours take place through unofficial vendors or the second-hand market, roughly equal to the share of direct-to-consumer purchasing behaviours, like artist websites and merch tables. This trend shows that a significant portion of the market remains outside the influence of music rights holders.

Amazon emerged as the top vendor for physical merchandise, with 39% of buyers reporting it as one of their primary sources for purchases.

The report suggests that future innovation will be driven by the development of new products aimed at deepening fan engagement, such as interactive merchandise and digital alternatives.

“The merch industry has evolved significantly over the last decade, with room for further growth in both the number of merch buyers and their spending,” said Cirisano. “However, labels must nurture deep, long-lasting fandom to sustain this growth. Fandom must be nurtured, not harvested.”

The full report "Music merchandise demand | Who, what and where" is live now.

For any questions or to arrange an interview, please reach out to Tsion Tadesse, PR & Communications Executive, MIDiA Research:

Press@midiaresearch.com or tsion@midiaresearch.com.

About MIDiA Research

MIDiA Research is a market intelligence and consulting firm with long-standing expertise in the business of entertainment and digital media. We work with various companies, from TV networks, streaming services, games publishers, developers, and record labels to tech giants and financial organisations, providing a deep understanding of trends and innovations that are shaping the market and audience behaviours.

We help leaders formulate commercially actionable strategies in order to navigate the evolving digital-content and consumption landscape. We leverage multi-country consumer data, market forecasts, and other proprietary data tools to provide unrivalled insight into the rapidly changing, global, digital-content markets. Our coverage areas include music, video, marketing and media, games, and audio.

“The merch industry has evolved significantly over the last decade, with room for further growth in both the number of merch buyers and their spending,” said Cirisano. “However, labels must nurture deep, long-lasting fandom to sustain this growth. Fandom must be nurtured, not harvested.”