K-pop Album Sales Expected to Decline in 2024 Amid Growing Streaming Popularity

Sales Decline in Physical K-pop Albums

The Korea Customs Service has published statistics revealing that sales of physical K-pop albums are stagnating, while streaming services are experiencing growth.

Trade Statistics Overview

On January 19, the Korea Customs Service shared new trade statistics via Joseon, reporting physical album export revenue of 423.8 billion won in 2024, a modest increase of 0.55 percent from 421.5 billion won in 2023. The report noted that this slight growth indicates a gradual decline in physical album sales for the first time since the industry’s consistent upward trend began in 2015.

Notably, K-pop exports to Japan, the industry’s largest market, dropped by 24.7 percent in 2024, with sales reaching 130.3 billion won. Meanwhile, sales to the US and China made up 72.8% of total exports last year, reflecting significant growth following the introduction of content restrictions on Korean material in China in 2023. Furthermore, despite achieving a record 100 million album sales in 2023, the industry was unable to replicate that success in 2024.

Factors Contributing to Stagnation

Joseon cites industry insiders who attribute the sales decline in 2024 to the “absence and underperformance” of major groups like BTS and BLACKPINK, both of which are currently on hiatus. The lack of “new global megahits” in 2024 has also been pointed out as a reason for stagnating K-pop sales.

Moreover, the prolonged public feud involving former ADOR CEO Min Hee-jin, HYBE, and NewJeans executives, which has persisted since April 2024, is reported to have also contributed to the declining album sales, according to Joseon sources.

The four leading music labels in K-pop—HYBE, JYP Entertainment, YG Entertainment, and SM Entertainment—have reported lower operating profits due to reduced album sales.

Despite this downturn, the number of streaming services within the K-pop sector continues to expand, although it is acknowledged that streaming revenues only account for half of that generated from physical album sales. According to Joseon, last year, HYBE noted a 10.5% year-over-year increase in daily streams, culminating in 12.6 billion streams by the end of 2024.