The U.S. music products business spent 2025 running in place, and tariffs made the treadmill more expensive.
That's the picture from Music Trades' 2026 industry reports, the trade's annual scorecard for instrument and audio sales. The estimated U.S. retail value of music products slipped 0.8% to $8.2 billion, while the industry faced what Music Trades calls a $627 million tax bill from tariffs.
The short version
U.S. retail sales of music products fell 0.8% to about $8.2 billion in 2025.
Music Trades puts the industry's tariff bill at $627 million, blaming "chaotic tariff policies" that hit just as COVID-era supply chain problems were fading.
The 50 largest online music retailers grew 4.5% to $7.0 billion.
Global sales held flat at $17.7 billion, which Music Trades ties to a lack of major new products.
Accessories were the bright spot, with a record year.
Where the $627 million lands
Tariffs are paid when goods cross the border. For an industry that relies heavily on imported instruments, parts and electronics, that cost hits manufacturers and distributors first, then works its way down to dealers and players.
Some of it already has. Fender raised prices to offset higher tariff costs, according to an S&P Global report covered by Guitar World. School programs are feeling it too: Georgia Public Broadcasting reported this month that beginner instrument prices have climbed, and a proposed 25% tariff on brass instruments has band directors worried.
Online keeps winning
The channel that grew was online. Music Trades' ranking of the 50 biggest internet music retailers, spanning 17 countries, shows combined revenue rising from $6.7 billion to $7.0 billion. Online sellers now account for roughly half of all music products sales, up from under 10% two decades ago.
Most of those retailers grew revenue in 2025 and, in Music Trades' words, "seriously pressured their brick-and-mortar competitors." One caveat: the online ranking is global, so it isn't directly comparable to the U.S. total.
Waiting for the next must-have
Worldwide, the top 225 manufacturers and distributors sold about $17.7 billion of gear, essentially unchanged from the year before. Music Trades points to the missing breakout product: 2025's launches were evolutionary, not revolutionary. Without something that sends players back to the store, a flat market stays flat.
Accessories bucked the trend. Strings, cables, stands, cases, drumheads and reeds topped $1.2 billion in U.S. retail sales and set a record, a reminder that people keep playing and restocking consumables even when they put off bigger purchases.
Why it matters
Players: Expect price pressure to continue while tariffs stay in place. Shopping around and watching for seasonal promotions matters more than it used to.
Retailers: Online is taking share in a market that isn't growing. Local stores win on what a warehouse can't offer: setups, repairs, lessons and advice.
Brands: With no category-defining product, growth has to come from taking share, and tariffs are squeezing the margins that pay for new ideas.
The bigger picture
Fender's battery-free Silent System hum fix, announced this week, is the kind of real innovation Music Trades says the market has been missing. Whether a handful of launches like that can move a $17.7 billion industry is the question for 2026, and MI Insider will be tracking it.
Sources: Music Trades 2026 Industry Census, Internet Music Retailer Report (Aug. 26, 2026), Global 225 Report and 2026 Accessory Report; Fender pricing via Guitar World; school programs via Georgia Public Broadcasting (Sept. 16, 2026).