Recorded music revenue in the United States reached nearly $6 billion in the first half of 2026, with physical formats posting the strongest gains and CD revenue growth outpacing vinyl, according to the Recording Industry Association of America (RIAA) mid-year report.
H1 2026 physical sales figures#
Physical revenue climbed 25.9% year over year to $731.5 million. Within that total:
- CD revenue: $171.1 million, up 58.6% year over year; units sold rose 45.7% to 17.5 million
- Vinyl revenue: $543.8 million, up 17.7% year over year; units sold rose 20.9% to 26.5 million
CD’s growth rate is outpacing vinyl’s, a reversal of the roles the two formats have held for most of the last two decades.
What is driving CD growth#
Mid-year data from Luminate show U.S. CD sales rose 16% to 16.3 million units in H1 2026, a growth rate roughly seven times faster than vinyl’s. Even after excluding the outsized physical-format buying culture of K-pop fans, Luminate found underlying CD sales growth in the high single digits.
Young listeners raised entirely on streaming are turning to CDs partly out of nostalgia-adjacent curiosity and partly out of economics. CDs typically retail for a third to half the price of a new vinyl record, making them a cheaper way to own physical music. Trend-watchers have coined a term for the aesthetic pull of Gen Z reverting to CD listening: ‘performative audiophilia.’
2025 full-year data offers a counterpoint#
A separate analysis of the RIAA’s full-year 2025 figures challenges the CD comeback narrative. CD revenue fell to roughly $312 million in 2025, while vinyl crossed the $1 billion mark for the first time in decades. Alliance Entertainment, one of the largest physical distributors, is placing strategic bets on vinyl through its authenticated-collectibles platform rather than CDs, even as it moves millions of CD units annually.
Vinyl’s revival has been building steadily for the better part of two decades. By 2025 it has become a genuine collectibles market complete with limited pressings, numbered editions, and resale value dynamics that plain CDs in their jewel cases have not replicated.
Outlook#
While CD’s growth rate is currently outrunning vinyl’s pace this year, the industry may be driven by Gen Z’s economic anxiety. Whether K-pop-driven and Gen Z interest can translate into a durable format shift over the coming decade remains to be seen. The success that the CD format is enjoying for now could be a ‘sugar high’ tied to a handful of blockbuster releases. The RIAA’s full-year 2026 report is expected to provide a clearer picture.
