Australia's position in the global music industry has fallen for the second year in a row, according to the latest Global Music Report from the International Federation Of The Phonographic Industry (IFPI).
The new report, released this week, outlines the current state of the industry and focuses on a number of topics affecting the global scene, including discussions on the rise of AI and streaming fraud, along with case studies on Tate McRae, Olivia Dean, and New Zealand's Balu Brigada.
The report also notes another massive headline, with global industry revenues hitting a record high of US$31.7 billion – indicating that even in troubled times, music is still a winner.
However, the news isn't entirely good for Australia, with the report's Global Market Overview once again posting a list of its top ten markets that does not include Australia.
Noting that every region of the world recorded revenue growth for the sixth consecutive year and pointing to Latin America as the the fastest-growing region), it also points out that every one of the Global Top 10 markets posted year-on-year growth, which was an increase of last year's figures, where eight of the top ten did so.
However, last year's figures also brought with it the news that Australia had fallen out of the top ten for the first time since at least 1996.
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While the list has been topped by USA, Japan, and the UK since 2018, the remainder of this year's report is a simple shuffling of last year's top ten, with China and Germany rounding out the top five, and Germany, France, South Korea, Brazil, Canada, and Mexico completing the top ten.
It was Mexico's inclusion last year – their first time in the top ten since 2002 – that pushed Australia out to the No. 11 spot, though it has this year fallen further to the No. 13 spot, with Italy and Spain overtaking.
Historically, Australia has always had a strong showing in the global markets, having peaked as high as number six on the list in 2004, and again from 2007 to 2015. In the two years leading the report of 2024's figures, it had stayed steady on the cusp of the top ten, before falling out entirely.
According to the report, recorded music revenues in the Australasian region (which includes Australia and New Zealand) reached "reached US$623 million and grew by 1.5% in 2025." While Australia's revenues increased by 1.2%, this still trailed the global average of 6.4%, and is in fact the worst of any global major market.
New Zealand, however, grew their recorded music revenues by 3.0%, ultimately contributing 15.2% of the Australasian region’s revenues.
New figures released by ARIA helped to contextualise the performance of the Australian music industry, with their report noting that "Australian recorded music industry posted its seventh consecutive year of growth in 2025," citing "wholesale sales rising 1.4% to $727 million."
The figures also notes that physical sales helped lead this growth, with vinyl sales increasing 4.1% to $46 million, and CD sales rising to 29.6%, equating to $21 million.
While premium streaming grew 1.4% to $517 million, ad-supported streaming only rose 0.4% to $670 million, though digital sales account for a whopping 91% of all music sales still.
"A seventh consecutive year of growth reflects the enduring connection Australians have with music, and the sustained investment of our record labels in developing and backing artists," said ARIA Chief Executive Officer, Annabelle Herd.
"While the pace of growth eased last year as streaming markets mature, the surge in physical sales shows that fans want to engage with music in deeper, more tangible ways.
Herd continued:
We are also seeing the rapid development of artificial intelligence globally. AI presents genuine new opportunities for the music industry – and AI licensing deals are emerging with major and independent labels and rightsholders globally – but these opportunities must be built on a foundation of consent, transparency, and fair compensation for artists and rights holders. Australia’s copyright law is the foundation for innovative technological development and strong local culture, and ARIA will continue to advocate strongly against threats to dismantle our copyright framework in the interests of a small number of major international AI tech companies.
At the same time, breaking new Australian music locally and earning a living as an artist has never been harder. Every new release enters an increasingly crowded global landscape, but the success of artists like Amyl And The Sniffers, Ninajirachi, Dom Dolla, and Troye Sivan – all recognised at the 2025 ARIA Awards – proves Australian artists can cut through anywhere in the world. We have extraordinary talent coming through at every level, and our domestic policy settings should reflect and support that. Removing the arcane and deeply unfair statutory 1% cap and ABC fixed price on radio recording royalties would ensure recording artists are fairly compensated in their home radio market and send a clear signal that Australia backs its creators.
ARIA’s focus remains squarely on growing audiences for Australian music, advocating for the rights and interests of artists and labels and developing a highly skilled and innovative local music industry. It has never been a more important time to invest in and protect local culture.
The full IFPI Global Music Report can be viewed here.
