K-Pop Market Growth Stalls as Album Sales Drop | Be Korea-savvy

K-Pop Market Growth Stalls as Album Sales Drop


The K-pop industry has shown signs of cooling. (Image courtesy of Yonhap)

The K-pop industry has shown signs of cooling. (Image courtesy of Yonhap)

SEOUL, Jan. 17 (Korea Bizwire) — After years of robust growth during the Covid-19 pandemic, the K-pop industry has shown signs of cooling, with physical album sales declining and export revenues stagnating in the past year. 

Industry experts are looking to BTS and Blackpink’s planned comebacks to reinvigorate the market in 2025, while closely watching major entertainment companies like Hybe, SM, and JYP as they prepare to debut new groups. 

According to customs data released on January 16, the aggregate value of album exports in 2024 reached $291.8 million, a mere 0.55% increase from $290.2 million in 2023. This marks a significant shift from the industry’s previous trajectory, which saw exports surge from $74.6 million in 2019 to $136.2 million in 2020, $220.9 million in 2021, and $231.4 million in 2022.

Japan remained the largest export market at $89.8 million, followed by the United States ($60.3 million) and China ($59.8 million). These three countries accounted for 72.8% of total exports. Despite economic headwinds and continued cultural restrictions, China saw a 76.4% increase in exports, while Japan experienced a 24.7% decline.

“The Chinese market began showing signs of recovery after May, following irregular sales patterns through April,” said Kim Jin-woo, chief researcher at Circle Chart. “China’s performance has been crucial in preventing a complete decline in export figures.”

Physical album sales also declined, dropping to 98.9 million units in 2024 from 120.2 million in 2023. Industry observers attribute this decrease to a reduction in aggressive marketing practices, including first-week sales competitions and unlimited fan signing events. The decline primarily affected top boy groups, while girl groups maintained relatively stable sales.

The summer Olympics in Paris also diverted attention from K-pop releases during what is typically a peak season for the industry. These factors contributed to decreased operating profits for major entertainment companies like Hybe and SM in the third quarter, while YG Entertainment recorded an operating loss.

Looking ahead to 2025, the industry anticipates a potential revival with BTS members completing their military service in June and Blackpink preparing for a new world tour expected to begin in summer. Major entertainment companies are also launching new groups, including JYP’s boy group KickFlip on January 20 and SM’s eight-member girl group Hearts2Hearts and Anglo-Korean boy group dearALICE in February. 

Some industry voices are calling for a shift in focus from quantity-driven metrics like album sales toward sustainability. K-pop environmental group Kpop4planet recently staged a demonstration outside Hybe’s headquarters, presenting a trophy made of light sticks to highlight concerns about the industry’s environmental impact. The group revealed that Hybe topped both categories in a poll of 10,040 fans across 66 countries, being named both the company most contributing to climate crisis and the one most expected to bring positive change to the industry.

“To sustain growth in the K-pop market, we need to expand beyond core fandoms and attract casual fans who sit between dedicated fans and the general public,” Kim noted. “Ultimately, it’s about broadening appeal to the mainstream audience.”

Lina Jang (linajang@koreabizwire.com) 

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>