UK music industry contributes £8 billion towards economy

UK Music, the collective voice of the music industry, has released its annual economic report, This Is Music 2025.

The report outlines the huge contribution the UK music industry makes to the economy, whilst also detailing some of the major challenges the sector faces.

Major UK tours in 2024 by Take That, Taylor Swift, Bruce Springsteen, Liam Gallagher and Girls Aloud helped drive the economic figures, while exports received a further boost from British artists including Charli xcx and her breakthrough album Brat. Lola Young also scored a global hit with her single Messy.

The report was praised by political leaders including Foreign Secretary Yvette Cooper MP, who paid tribute to the music industry as “one of our greatest international success stories”.

The challenges facing the sector covered in depth in the This Is Music report include; slowing growth rate, impact of AI, lengthening artist development cycle, threat to grassroots ecosystem, and EU touring and cultural exchange.

The rate of economic growth in the music industry slowed with Gross Value Added and exports both 5% up in 2024, instead of the double-digit growth seen over the past few years as the industry recovered from the pandemic. A weaker touring schedule and a lack of big selling releases by British artists in 2024 also contributed to the slowdown.

UK Music surveyed music creators about Artificial Intelligence (AI) for the report. Music creators were united in agreeing that protections should be in place to stop their work being used without permission or payment - with over 90% of respondents indicating their support.

The development of UK artists and music creators is a rising concern because it is taking longer for artists to reach a breakthrough moment, the report concluded. This is part of a global trend which has impacted artists from the UK, USA and other major markets.

Challenges facing the grassroots ecosystem are also a factor. Many emerging artists are finding it increasingly difficult to tour at this level, with income from touring not keeping pace with costs. Many grassroots music venues have closed in recent years and others are under threat. Recording studios are under pressure, while the cost of recording and touring for grassroots music creators is especially high.

For a third year, UK Music surveyed British-based music creators about their experiences of Brexit. This group included touring artists and musicians, DJs, vocalists, composers, songwriters, lyricists and producers. Of those surveyed, 32% were affected by the UK leaving the EU in 2024 - up 4% from 28% in 2023. Of those affected, 95% experienced a decrease in earnings in 2024 - up 8% from 87% in 2023.

UK Music Chief Executive Tom Kiehl said: “In recent years UK Music has reported that the music industry has enjoyed double-digit annual growth. That growth has now halved, which indicates a leveling off of the immediate post-pandemic boost that we experienced, as well as other underlying issues set out in this report.

“This points to the need for urgent action. If problems are not addressed then future growth cannot be guaranteed.

“The Government has committed to a £30 million Music Growth Package and it is vital that these much-needed funds are channelled to boost this cycle, as well as targeting other key issues.

“But while it is brilliant news that the Government now acknowledges music as a high-growth sub-sector, ultimately the Government needs to be judged in terms of the progress it makes in regulating artificial intelligence and unlocking EU touring.

“The status quo on these two big issues is currently tilted against music’s interests, with This Is Music 2025 revealing new survey data on both AI and EU touring evidencing why we need the balance to swing back in our favour. This is a pivotal moment for the UK music industry, let’s come together to make sure we realise our full potential.”

Writing in the report, Foreign Secretary Yvette Cooper MP said: “The UK music industry remains one of our greatest international success stories. Every year, we see more new artists from Britain becoming global stars, and our existing world-famous musicians reaching new heights, all of them adding to the incredible heritage of creativity, talent and genius that has defined UK music throughout our history.

“As Foreign Secretary, I am deeply grateful for the role that the UK music industry plays in promoting British culture around the world, opening doors across continents, and acting as one of the most powerful expressions of our soft power in action.

“We have therefore ensured music is a key part of the Government’s new Soft Power Council, which brings together leaders ranging from culture and sport to tourism and education to discuss how the UK projects itself globally.

“At a time of continuing economic challenges around the world, the UK music industry also makes an important contribution to the overall strength of our economy, and the figures in this annual report show that the industry is continuing to grow. Yet despite UK music’s successes, we are aware that the industry faces real challenges.

“The grassroots music sector, which nurtures the talent that goes on to achieve global success, is facing pressures that risk holding back the next generation of artists, while touring barriers make it harder for those artists who have enjoyed success at home to go to the next level and reach an international audience.

“We are committed to working with our European partners to make it as easy as possible for British artists to perform their music on the continent.

“Competition is also intensifying as other nations seek to grow their own cultural exports and take a greater share of the global market for new music. In this fiercely competitive environment, it is more vital than ever that we support British creativity.

“The Government’s Music Growth Package – announced this year – will provide up to £10 million annually over three years to support touring, performance, mentoring and export opportunities for emerging talent to help them break through at home and abroad. The funding will support the whole music ecosystem from the grassroots upwards, helping UK music to maintain its global impact.

“With the Government’s support, the UK music industry can continue growing from strength-to-strength, delivering economic growth, nurturing new talent, and exemplifying to the world our nation’s creativity and global influence. Together, we can ensure that Britain is where our country always belongs – a leader on the global stage.”

Image credit: Stolen Besos