Australia has experienced a significant shift in its standing within the global music industry, falling out of the top 10 music markets for the first time in nearly three decades. This change is highlighted in the latest Global Music Report released by the International Federation of the Phonographic Industry (IFPI), which tracks the performance of recorded music revenues worldwide. This marks a pivotal moment for the Australian music scene, which has historically been a robust player in the industry.

The annual Global Music Report, released this week, ranks the world’s largest music markets based on recorded music revenues. The United States, Japan, and the United Kingdom continue to dominate the top three positions, showcasing their longstanding influence in the global music scene. However, for the first time since at least 1996, Australia has dropped out of the top 10, with Mexico surpassing it to seize the final spot. This significant change highlights the evolving dynamics within the music industry, reflecting shifts in consumer behavior and market engagement.

Despite the shift in ranking, recorded music revenues in Australia are on an upward trajectory. The IFPI report indicates that revenues in Australasia reached an impressive $629 million in 2024, marking a 6.4% increase overall. Specifically, Australia saw a growth rate of 6.1%, while New Zealand experienced an even more substantial 7.8% increase in revenue. Nevertheless, these rising figures were insufficient to retain Australia’s place in the ranking, as other markets, particularly Mexico and Brazil, have seen even more rapid growth, with increases of 15.6% and a staggering 21.7%, respectively.

Australia has historically been a formidable force in the global music industry, having reached as high as No. 6 on the IFPI’s ranking in 2004 and maintaining that position from 2007 to 2015. Yet, in recent years, the country has found itself teetering on the edge of the top 10, ultimately falling out in 2024. This decline underscores the need for a closer examination of the factors that are impacting Australia’s global standing and its ability to compete in a rapidly changing landscape.

The decline in Australia’s ranking raises critical questions regarding the underlying factors that are influencing its position in the global music market. While steady growth in revenues is encouraging, the swift expansion of emerging markets suggests a shift in both industry investment and audience engagement techniques. Countries like Mexico and Brazil have made significant investments in Artist and Repertoire (A&R), marketing strategies, and the development of local talent, which have all contributed to their increasing prominence on the international stage.

The IFPI’s Global Market Overview provides an optimistic perspective, noting that worldwide music revenues have increased for the tenth consecutive year, with a growth rate of 4.8%, reaching a total of $29.6 billion. “This growth reflects an industry that is continuously evolving and adapting across the globe, with every region experiencing growth,” the report asserts. This trend indicates a robust recovery and resilience within the global music landscape, showcasing the diverse opportunities for artists and labels alike.

However, Australia faces the challenge of securing a stronger presence in the global market amid these evolving conditions. Recent statistics from ARIA reveal six consecutive years of revenue growth in the Australian recorded music sector. Nevertheless, industry leaders may need to pursue innovative strategies to regain their competitive edge. This could involve increased investments in local artists, a more robust push for international market penetration, and advancements in streaming and digital distribution. Such initiatives could be vital for Australia to reclaim its position among the world’s top 10 music markets.

The comprehensive IFPI Global Music Report is now available for review, offering further insights into the transformative shifts that are shaping the industry as we approach 2025. This report serves as a valuable resource for stakeholders looking to understand the trends and dynamics influencing the global music market and to strategize for future growth.