This week’s Music Ally Country Profile is on Japan, a country which has continued to see revenues climb in 2025 as the second largest domestic recorded music market worldwide. 

“This growth is dual-engine in nature, with digital revenues up 7% and physical revenues up 12%,” president of Warner Music Japan Takeshi Okada told us. “We redefined ‘physical’ to include premium, high-value collectible experiences that sit alongside digital consumption, thereby diversifying our monetisation streams.”

Vinyl achieved its fifth consecutive year of growth, with the shift driven primarily through idol groups and K-Pop. 

With Japan accounting for nearly one third of all paid streams across the Asia-Pacific region, Japanese music culture has historically spelled out investment by virtue of superfan culture. 

“What Luminate has identified is the ‘Superfan Factor’ finally hitting digital scale,” continued Okada. “Japan has always been the global blueprint for high-value fandom; our consumers don’t just ‘consume’ music, they invest in it.”

“Historically, that investment was physical – special editions and collectibles.  What we’re now seeing is a sophisticated digital migration.”

Japanese listeners also have a strong taste for domestic acts, with 81% of Japan’s Spotify Top 200 made up of local acts. South Korean music is by far the closest runner up, taking up a further 14.5% of the Top 200. 

Music Ally’s Japan editor Jay Kogami, however, says there is certainly still room for international acts. 

“If you come to Japan, you’ll see many international acts coming to play a show,” he says. “Just last year, I watched Taylor Swift and Billie Eilish. Lady Gaga was here not too long ago.”

“But also I’m seeing a more ‘new generation’ of international artists coming to Japan, such as Latin artists and African Afro-pop artists. They are the ones that were traditionally not on Japanese listeners’ radar.”

Head of Music at Spotify Japan Kyota Onishi cites rock band Mrs. Green Apple as hands down the most popular Japanese act today. Other big stars include Kenshi Yonezu, Vaundy, Snow Man, Number_i and HANA. 

How to break in Japan?

Localise social media. Since Japan can be quite insular, nailing social media is key. Japanese-language content is crucial, and while not ideal for elaborate campaigns, domestic messaging apps like Line (97m users) can be a place to share any activity on YouTube, Instagram and TikTok.

Getting physical. Japanese listeners love high-quality and unique collectibles, which can make for a great merch campaign element. One-of-a-kind art prints, manga booklets, territory-exclusive CDs, action figures, custom food and beverage tie-ins, and lore artifacts such as collectible coins are some options to consider (that actually sell). 

For more on Japanese streaming demographics, anime’s influence, key festivals and more, head to Japan’s full country profile