Vinyl and packaging manufacturer, Key Production Group, reveals its predictions for vinyl and physical music releases in 2025

31 January 2025 - Press release

 

For the first time in 20 years, physical music sales have grown year-on-year, as BPI figures report a 10% increase in overall sales. Vinyl sales have now been on the rise for over 17 years, demonstrating that the so-called ‘vinyl revival’ is more than a passing trend, and now overall physical sales (vinyl, CD, cassette and others) are rising too. During the past year, there has been a huge shift in the understanding of the turnaround times of physical music manufacturing and orders have returned to pre-covid levels.  

Karen Emanuel is CEO and Founder of Key Production Group, Europe’s leading manufacturer of vinyl pressing, design and packaging. Karen founded the company in 1990 and successfully guided the company through the challenging years when physical formats struggled. She steered her company through the pandemic, Brexit, cost-of-living crisis, and dealt with the huge backlogs in production. Jamie Slaughter is a Sales Executive at Key Production Group. Jamie is on the front line speaking to artists about their wants and needs. Together they are well-equipped to tell us about the trends and opportunities that await the physical music industry in 2025.  
 

1. More appetite for sustainable options and more research into sustainable formats  

Jamie:  It’s incredibly rewarding to see more and more artists and labels turning to Key Production to discover sustainable options and find ways to integrate them into their releases. There’s a growing awareness of sustainable practices among the general public, and it's clear that these issues are becoming a priority within the industry. At Key, we highlight various more eco-friendly alternatives—such as eco-vinyl, bio-vinyl, biodegradable shrink wrap, injection moulding, and cardboard CD cases—on every quote. This approach has led to an increasing number of clients opting to incorporate more of these options into their projects. Looking ahead to the next twelve months, I’m confident that sustainability will continue to be a priority for both artists and labels. 

Karen: This year, we’ve noticed more factories changing how they operate to meet the growing demand for sustainable products, most if not all have in-house sustainability experts. Given the UK is on a mission to meet zero net targets by 2050, many businesses and factories are making the changes to ensure this will happen. Some of the key aspects that have been updated by these companies include measuring and monitoring their emissions, encouraging customers to use ‘bio-attributed’ PVC compounds or re-grind, for records, switching to zero-carbon electricity and encouraging customers to press only on 140g. 

Even in the US, where things can be slower, the market is waking up to the demand. Results from Key Production’s survey revealed that two-thirds of vinyl buyers would be encouraged to buy more if records were made with a reduced environmental impact, demonstrating the demand for sustainable options. On top of this, there has been research into alternative materials for physical products, including compounds made from sugarcane and recycled-consumer-vinyl, so I expect we will start seeing the impact of this research within the next year - if not the year after. 
 

2. We foresee CDs to have another strong year 

Jamie: BPI figures have shown that CD sales continue to decline, but the rate of decline is clearly slowing. We've always believed in CDs as a viable format that is here to stay, and this remains true as younger generations increasingly embrace physical music. Artists are recognising the value of CDs as way to connect with their fans, and fans, in turn, are more inclined to support their favourite artists through affordable options. Looking ahead, I believe we will see the format's popularity continue to grow, driven by younger people’s admiration for physical music and its connection to retro aesthetics. 

Karen: Echoing what Jamie has just said, I think there has been a definite shift and believe CDs will become more popular, even “cooler” with the younger generations. Both artists and fans are starting to realise what a great option CDs are. CDs are super practical; you can pick them up at a gig and just slip them in your pocket with no fuss at all. Traditionally, we’ve seen classical music use CDs more than other genres, and some people would say CDs are actually the purest form of digital music, so hopefully, next year we’ll see other genres embracing them for their sound quality.   
 

3. 2025 will bring some amazing anniversary box sets 

Jamie: 2025 will mark 50 years since 1975, a year that gave us some of the most notable albums ever released, Wish You Were Here, A Night at The Opera, Young Americans and Fleetwood Mac, just to name a few. With such a significant anniversary for music, we’re anticipating some truly special tribute releases. Given the wealth of content available for many of these albums, box sets seem highly likely. Touching on my earlier point, the rising interest in the 70s among younger generations is hardly surprising, especially in today’s fast-paced, social media-driven world. There’s an increasing desire for something tangible—something people can truly value in an age dominated by fleeting digital moments. Physical formats, in many ways, stand as a rebellion against this culture, offering a chance to slow down and truly savour the experience. And what better way to do that than with a box set from your favourite artist? 

Karen: 1975 was a huge year for rock music, and these anniversaries present an opportunity to celebrate such iconic releases with some incredible box sets. It’s also interesting to think about how 1975 marked the end of the big stadium rock era, right before punk burst into the scene. Jamie also raised an important point about why younger generations are turning to physical formats. Gen Z, in particular, seems to see physical formats as an antidote to the fast-consumerism world they’re living in. That's why albums are more than just a product; they’re an opportunity to take some time out, dive into a piece of music, and connect with it on a deeper level. 

 

4. Rising demand for bespoke products will drive more special editions  

Jamie: In recent years, we’ve witnessed a significant surge in the popularity of special edition releases, pushing the boundaries of physical music to new heights. There’s a growing demand for highly bespoke versions of frontline releases, which has led to more innovative and daring creative marketing strategies. This trend is also expanding into areas like film, TV, and gaming soundtracks, with vinyl becoming an increasingly sought-after format. A great example of this is the liquid-filled Saltburn vinyl, which brilliantly merges different worlds to create something truly special, capturing the imagination of fans in a unique way. 

Karen: With the rising demand for bespoke products, there’s so much potential to grow the quality of the products. Here at Key Production Group, we’ve been able to do some really exciting things, such as glow-in-the-dark vinyl, pop-up sleeves and scented vinyl. Having seen the development of so many interesting formats this past year, we’ve set up a product design group to see how far we can push the boundaries on that special product.  

 

5. 2025 will see customers start to embrace SMART products, blending the physical and digital worlds 

Karen: Last year, Key Production Group launched a groundbreaking way for musicians to release their music, SMART formats. SMART formats blend physical products with bonus digital content, giving artists the chance to release exclusive material to fans through physical formats. This year has been all about building awareness for SMART formats, but I believe 2025 will be the year we truly see artists start to embrace them. 

Jamie: Definitely! Over the past year, there has been a lot of interest in SMART formats, particularly since we’ve started incorporating them into vinyl releases and even the product itself! Looking ahead, I think we will see even more fusion between the physical and digital realms as people begin to fully grasp the potential of these technologies. A prime example is the Grammy-nominated Alpha Wolf box set, which featured an NFC tag that granted fans access to an exclusive digital space. The possibilities for artists to connect with their fans using SMART formats are virtually endless, and I believe this year we will really see this kick off.  
 

6. Superfans will want closer, more personal access to their favourite artists 

Karen: It's fair to say that superfans was one of the buzzwords of 2024, but as we look towards next year, anyone who counts themself as a fan or superfan, is going to want even closer, more personal access to their favourite artist. With the number of superfans growing, the demand for more specialised products will increase, and that is going to drive the development of bespoke items even further. There are more options than ever before, and what is achievable in boxsets and through SMART NFC technology is practically limitless. I think we’re going to see artists finding completely new ways to connect with their fanbases in a way that has never been done before.