As Spotify Wrapped takes over feeds, Gen Z is also driving a resurgence in physical music.
Record sales in Canada are up 19.1% year over year, and Statistics Canada shows physical media purchases climbed 34% from 2021 to 2023. Beyond nostalgia, the surge points to deeper lifestyle trends: screen-free listening rituals, collecting as a form of identity, and renewed interest in music communities.
Jeff Johnson, owner of Megahit Records — one of Temu Canada’s top-performing independent records stores — is seeing this growth firsthand. As a music industry veteran, former Warner Bros analyst, and active singer-songwriter, Johnson said physical formats are resonating with Canadians and Gen Z, and which artists are driving demand.
More on why this is trending:
- Physical albums as identity objects: Fans want more than music — they want tangible connections, artwork, and collectibles. Limited-edition vinyl and CDs with posters, postcards, and other extras are top sellers from Megahit’s Temu store. K-pop is a prime example, with fans collecting special editions and making physical albums central to their fandom and self-expression.
- Offline discovery, online purchasing: Gen Z still loves browsing record stores for hidden gems, but online shopping still proves important. Marketplaces like Temu help them find items that may be sold out in-store, showing that discovery often happens offline while actual purchasing happens online.
“Looking at our sales on Temu in the US and Canada, I see a lot of our K-Pop products selling — it’s remarkable really. This is one phenomenon that makes the current rise in physical music sales different from previous times. K-Pop fans are truly passionate about the artists they love,” said Johnson.
“Oftentimes if a new K-Pop album comes out with multiple versions — sometimes five or six versions — or one for each band member, fans will want to buy all of the different versions.
“While someone buying six versions of the same album boosts physical music sales in a big way, another big driver, of course, is the ongoing resurgence of vinyl records being pushed by Gen Z buyers. Gen Z certainly has fallen in love with vinyl in recent years and it shows.”
Since the company started selling on Temu in Canada, it has noticed that a high percentage of music sales were coming from vinyl records.
“We’re finding an enthusiastic customer base out there for our vinyl products — all the way from the jazz icons of the 50s to classic rock bands of the 70s to the big artists of today like Taylor Swift. As opposed to streaming, vinyl is something they can own that has its own innate beauty – this is what our customers and music fans value,” added Johnson.
“Our biggest selling item with Canadians consumers through our Temu storefront is a special green vinyl limited edition of the Talking Heads album entitled ‘77, which originally came out nearly 50 years ago. I believe music fans are collectors at heart and have a special affinity for limited editions, coloured vinyl, box sets and so on. They love the music, but they also want something special that they can have, hold, and put on display.
“As for the prices, a lot of these special editions are priced higher, but music fans are often willing to pay a premium for products from artists they love. Selling on Temu has helped me keep my pricing transparent, especially as it relates to selling special edition vinyl, so that my customers can avoid inflated costs and still get to purchase something they’ll treasure at a fair price.”
Some consumers like to shop for music in person— to browse through the racks looking for a hidden gem. Some like the ease of Temu and online shopping and ordering from home. Temu also makes it easy for younger customers to browse across different categories and pick up what they need in one place.
“Hardcore collectors may go to Discogs or eBay looking for obscure used titles. Gen Z is definitely a music generation, and they certainly have more options than previous generations when it comes to finding and buying music,” he said.
Johnson said he sees the growth of physical music continuing strong into 2026.
“As long as record companies continue to repackage and release great music into previously unavailable configurations, fans will be there to buy them,” he explained.
“For example, every year for the past several years, the Beatles have released a remastered and/or repackaged version of one of their albums. This past year it was the three Anthology albums from the ‘90s. Every new release generates interest in the artist’s entire back catalog thus increasing sales even more. There’s always an anniversary edition coming out — whether it’s the 30th anniversary of a Nirvana album, the 40th anniversary of a Tears For Fears album and so on.
“However, what could be the biggest boost for physical sales this year could be the return of K-Pop’s biggest act – BTS. Their new album has multiple physical configurations coming out next month and they’re planning a huge world tour. In light of all this, I believe physical music has a bright future.”
More from Retail Insider:
- Hike in retail sales in November: Statistics Canada
- CFIB Business Barometer: Small business confidence remains steady in January
I feel more of this is driven by Gen Z’s Gen X parents. As one of those Gen X parents, I can say for sure that Gen Z is not driving sales of Talking Heads or Tears For Fears. However, I have bought KPop for my daughter!