Market Overview

In December 2017, Music Trades estimated the global music products markets in 2015 to be $15.9 billion.

The top 10 European retail markets for musical instruments and music equipment (including the UK) are worth approximately £4.3 billion, and are undergoing a profound shift towards online retail. 

* = Management estimate

Global
In December 2017, Music Trades estimated the global music products market in 2015 to be $15.9bn, including a $7.8bn US market and $5.8bn European market.

European
The top ten European retail markets for musical instruments and music equipment (including the UK) are estimated to be worth approximately £4.3bn, and are undergoing a profound shift towards online retail.

The largest retailer serving the European musical instruments and equipment market is Thomann.de, based in Germany, with a 2017 reported turnover figure of approximately £700m. Other competitors in the European market include Musicstore.de (Germany), 4Sound (Sweden), Bax Shop (Netherlands) and Woodbrass (France).

UK
Music Trades estimated the UK market is growing at 2%, and the top six retailers account for an estimated 24% of the UK market (2017: 22%), with a long-tail of small independent shops, pure play online retailers, general merchandisers and department stores. An estimated 24% of the UK market is already online as the sector experiences the channel shift away from physical stores.

The Board believes that the current dynamics of the UK competitive landscape, in particular the significant degree of fragmentation with no large or dominant retailers, presents a consolidation opportunity. Whilst acquisitions do not form a core part of the current strategy, opportunities are reviewed on an ad hoc basis.