As the fastest-growing U.S. market, Latin music revenue reached $1.4 billion in its second year, according to an RIAA report
For the second year in a row, US music income surpassed that of the whole music industry, reaching a record-breaking $1.4 billion and indicating a 16% increase over 2022. The Latin music business has continued to progressively grow its market share for the overall U.S. market, reaching a new high of 7.9%, according to the Recording business Association of America’s (RIAA) 2023 U.S. Latin Music Revenue Report.
According to Rafael Fernandez Jr., senior vice president of public policy and Latin music at the RIAA, “Latin music has exploded in the U.S. over the last decade as a new generation of stars boosts the genre and streaming puts this dynamic sector at everyone’s fingertips.”
Karol G is one of those new musicians; in February 2023, her album “Mañana Será Bonito” debuted at number one on the Billboard 200, making her history as the first Latina woman to do so. The album made her the first woman to win both album of the year at the Latin Grammy Awards and best urban album at the Anglo Grammy Awards. Peso Pluma also made history on the Billboard 200, with “Genesis,” their highest-charting album of Mexican music, peaking at No. 3.
According to the RIAA’s general annual report, streaming remains the preferred listening option for lovers of Latin music and the general market overall. It accounts for over 98% of Latin music sales and is expected to reach $1.3 billion, an increase of 17% over 2022. Over two thirds of total income came from paid subscriptions, which increased at a quicker rate than any other platform, by 21% to $915 million.
The combined income from social media platforms, Vevo, YouTube, and Spotify’s free version accounts for around 25% of the Latin market’s entire worth. This surpasses the whole market, where 11% of recorded music income come from ad-supported streaming.
For Latin music, digital and personalized radio services like Pandora, SiriusXM, and internet radio generated 6% of the streaming income, while physical formats and permanent downloads contributed 1% or less to the overall revenue in 2023, with vinyl record sales falling by 25% and CD sales by 49%.
According to Fernandez Jr., “Latin artists are shaping our culture as fans gravitate towards the spirit of this music, propelling faster growth than all other listening and expanding our horizons further every year. We are no longer limited by language, access, or outdated assumptions.” While artists and labels release new sounds and songs, there are also potential for more fans to sign up for premium streaming services and for Latin vinyl sales to soar even higher. Fans may discover new methods to interact and inspire wonderful experiences with each other while doing this.
“It’s amazing to see the impact this genre is having on the overall U.S. market and the role streaming continues to play in helping fans connect as they discover new styles, artists, and sounds,” said Matthew Bass, VP of research and gold and platinum operations at the Recording Industry Association of America. And just as vinyl has become more popular in the general market, Latin music still has a lot of room to grow within this established medium, perhaps reaching new heights in the process. Latin music has consistently seen a creative and commercial boom, which is evidence of how dynamic collaborations and label know-how can support artists in realizing their full creative potential and bringing listeners closer to the music than before.
