K-pop Market Growth Slows Down... Album Sales Decline for First Time in 9 Years, Exports Also Stagnant

The rapid growth trajectory of the K-pop market that persisted for several years after the COVID-19 pandemic stalled in 2024. Album sales dropped for the first time in nine years, while export values showed little to no increase. According to customs trade statistics from the Customs Service, album exports in 2024 amounted to $291,837,000 (approximately 423.8 billion won), representing only a 0.55% rise from the previous year’s $290,231,000 (approximately 421.5 billion won). This growth rate is effectively equivalent to no increase at all. Album export values had shown strong upward momentum in recent years. Starting at $74,594,000 (approximately 108.3 billion won) in 2019, they rose to $136,201,000 (approximately 197.7 billion won) in 2020, $220,850,000 (approximately 320.5 billion won) in 2021, and $231,389,000 (approximately 335.8 billion won) in 2022, but growth slowed significantly in 2024. In terms of country-wise exports, Japan ranked first with $89,786,000 (approximately 130.3 billion won), the United States came in second at $60,293,000 (approximately 87.5 billion won), and China occupied third place with $59,789,000 (approximately 86.8 billion won). These three countries combined accounted for 72.8% of total exports. Regional trends showed contrasting patterns. Despite challenges such as economic downturns and the anti-K-pop regulations, China’s exports increased by 76.4% compared to the previous year, while Japan’s exports declined by 24.7%. Physical album sales also turned downward. According to Circle Chart, physical album sales from January to December 2024 (for the top 1–400 rankings combined) totaled approximately 98.9 million units, a decrease of 21.3 million units from the previous year and falling below 100 million units. Industry experts attribute the decline in album sales primarily to reduced excessive marketing practices. Practices once considered problems in the K-pop market, such as fierce first-week sales competition, endless fan sign-ups, and excessive album shipments, have eased somewhat. Additionally, the intense competition among major idol group fandoms to set sales records, seen in 2022–2023, was not as intense this time. Kim Jinu, senior research fellow at Circle Chart, analyzed that “the decline in album sales is concentrated among top male groups, while female groups performed relatively stable without significant changes compared to the previous year,” adding that “this does not appear to be a structural or fundamental issue in the K-pop industry.” The 2024 Paris Olympics held last summer also had an impact. With a major sports event taking place during the peak season for the K-pop market, interest in K-pop diminished. As a result, the operating profits of major agencies such as HYBE and SM Entertainment all declined compared to the same period in the previous year, while YG Entertainment recorded an operating loss and shifted to a deficit state. The industry is expecting market recovery this year. BTS’s RM, V, Jimin, Jung Kook, and SUGA, all five members, will complete their military service in June, and BLACKPINK is set to begin working on new music starting in spring and launch a world tour in the summer. Moreover, major agencies like JYP, SM, and HYBE are expected to introduce new groups one after another this year, helping to revitalize the market.