Market Overview

In December 2016 Music Trades estimated the global music products markets in 2015 to be $16.2 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

Approximately £178 million of the UK market is already online, and the top six UK companies account for an estimated 16%.

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 will be reviewed on an ad hoc basis.

A survey conducted by Nexus Research in 2014 on behalf of the charity ‘Music for All’ suggested:

• 28 per cent. of the population over five years of age currently play a musical instrument (2005: 21 per cent.);
• 47 per cent. of all UK households have at least one musical instrument player (2005: 37 per cent.);
• there are 13.6 million “lapsed” players, of whom 58 per cent. (7.9 million) would like to start playing again; and
• of those who have never played before, 58 per cent. (14.6 million) agreed they would like to learn to play a musical instrument.