UK Music Industry is Thriving, But Still Faces Challenges – RouteNote

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The UK music industry is booming, but the latest “This Is Music” report by UK Music reveals pressing vulnerabilities which could hinder sustained growth.
UK Music has published its annual “This Is Music” stats report, offering a comprehensive snapshot of the industry’s economic and cultural impact. Central to the report is the concept of Gross Value Added (GVA), which measures the economic contribution of the music sector through activities like music sales, concerts, recording studios, touring, and music tourism.
This year’s report reveals a remarkable 13% growth in GVA, climbing to £7.6 billion. Music exports also rose by 15% to £4.6 billion, fueled by the continued global appeal of British artists such as Harry Styles, Adele, and Ed Sheeran. Together, these superstars contributed to record-breaking music export revenues of £775 million in 2023. 
Employment within the sector is another standout achievement, reaching a record 216,000 full-time equivalent roles. These figures reflect the strong “international appetite” for UK music, indicating the industry’s resilience and recovery following the pandemic.
“The music industry is a real British success story. These impressive new figures underline how vitally important it is to be driving growth – as it boosted its value to our economy by nearly a billion pounds in one year.”
Despite these achievements, it’s not all sunshine and rainbows for the UK’s music industry. The music industry is “at a tipping point,” according to UK Music CEO Tom Kiehl.
“This is not a time to be complacent… the UK music industry has vulnerabilities too.”
Whilst many upper-end venues have bounced back to normality after the pandemic, grassroots venues are still struggling. Over the past year, 125 grassroots venues closed, and 350 more face potential closure. Festivals are also under threat, with 192 disappearing since 2019 and many more postponed or cancelled in 2024.
These struggles are compounded by obstacles for artists. Brexit and US visa costs make international touring increasingly unattainable for developing artists to grow their worldwide reach:
Merchandising, often crucial to make these tours profitable, has also taken a hit, with 31% of artists finding it uneconomical to sell merchandise in Europe post-Brexit. 
Additionally, the global music market poses heightened competition. Despite UK music’s export growth, UK music’s global consumption has dropped from 17% in 2017 to under 10% in 2023. Emerging risks from generative-AI further add challenges to the industry’s future.
UK Music’s report highlights four critical priorities to safeguard the industry’s future:
Recent initiatives, such as Spotify’s partnership with the Youth Music charity to support grassroots music, highlight how collaborative efforts can make a difference.
While the UK music industry continues to achieve incredible growth, these vulnerabilities cannot be overlooked. It is clear that an ambitious plan is needed to address these issues and ensure a vibrant future for the music industry, benefitting generations of artists and fans.
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