Japan, ranked second in the world, China in hot pursuit, and South Korea fighting with influence—The Numbers Tell the Story of the East Asian Music Map

1. The View of the Scene and the View of the Numbers are Different

In 2025, K-POP continues to capture global attention. The Netflix anime 'KPop Demon Hunters' became one of the biggest hits in streaming history, visualizing the penetration of K-culture. However, when looking at the business foundation of "recording," Japan and China are at the forefront—according to IFPI's annual report and industry summaries, Japan ranks 2nd, China 5th, and South Korea 7th globally. The global recording revenue in 2024 was $29.6 billion (up 4.8% from the previous year). Amidst this trend, the three East Asian countries are each driving the market with different drivers. IFPI

2. The Data Shows a "Japan-China > Korea" Structure

Industry media Digital Music News pointed out that "even with the overflow of K-POP coverage, the recording markets of Japan and China 'overwhelm' Korea." The article organizes Japan's strength in physical sales and live performances, China's streaming and policy drive, and Korea's "integrated culture export" model. What is important here is the fact that buzz and value (recording revenue) do not align. Digital Music News

3. Japan—A "Two-layer Structure" of Physical Culture × Live Mobilization

Japan has long maintained the world's second-largest recording market. CDs and packages still hold a significant presence, and the behavior of "buying music as a product" is culturally ingrained more than in other countries. Meanwhile, streaming is also growing, forming a "two-layer structure" that synergizes with the recovery of live entertainment. IFPI's 2025 report indicates global growth of +4.8%, with Japan facing a flat to slight decline phase, but the potential for streaming growth remains a positive factor in the mid to long term. IFPI

4. China—A Huge Streaming Economy and Policy Support

China has seen rapid growth with the spread of domestic giant platforms like Tencent Music and NetEase Cloud Music, supported by policies promoting cultural industries. The scale of SNS and music awards is unparalleled, with the "Weibo Music Awards" in September attracting a massive online participation, underscoring the depth of the Chinese-speaking ecosystem. In the IFPI rankings, China is steadily establishing itself in the upper ranks, and the sophistication of subscription fees and value-added services will lead to the next growth stage. Digital Music News　qilucj.com

5. Korea—The Dilemma Facing the "Nation of Influence"

Korea faces the paradox of having a small recording market despite its global influence. Physical-driven fandom purchases are strong, but much of the global sales are realized abroad. In the IFPI charts, K-POP shows a solid presence, with groups like SEVENTEEN dominating the top global sales. By June 2025, all BTS members will have completed their military service, reigniting expectations for major projects in the next term. However, as noted by the stock market and revenue structure volatility, sustainable growth hinges on optimizing streaming and tours, and localization in Japan and North America is key. Reuters

6. SNS Reaction Highlights (Summary)

• The assertion that "K-POP's largest consumer base is actually Japan and China, rather than the U.S." spreads. Concerns about K-POP's "U.S. orientation" are also voiced. X (formerly Twitter)

• A post reaffirming "Japan as Asia's largest music market and K-POP's largest overseas consumer base" gains support. X (formerly Twitter)

• In music industry communities, the essence of the DMN article ("Japan and China surpass Korea") is quoted, with ongoing sharing of links to IFPI data. Facebook

It should be noted here that SNS is a "momentary wind speed" including pros and cons and does not substitute for statistics. However, as a mirror reflecting market perception (narrative), it can provide hints for anticipating policy directions.

7. Insights from 'KPop Demon Hunters'

The work, which became a record hit on Netflix, proved that the trinity model of music × animation × global distribution creates consumption beyond national borders. The influence of K-POP does not necessarily align with the "ranking of the recording market"—how to bridge that gap with cross-border IP deployment is the next issue. Netflix

8. Future Strategies for the Three Countries: "Complement" Rather Than Competition

• For Japan: Maximize LTV with limited editions × store strategies × live lines. Streaming will shift to a "subscription + merchandise" hybrid with local strategies (anime/VTuber/regional festival linkage). GEM Standard

• For China: Strengthen regulation-compliant licensing design and regional IP partnerships, assuming subscription fees and added value (virtual gifting, membership). Digital Music News

• For Korean Artists: Position Japan and North America as revenue hubs, extending "song lifespan" through streaming and optimizing tour cities. Investors need to avoid the shortcut of "recognition = revenue" and translate the fandom value of K-POP into long-term KPIs.

9. Conclusion—Bridging "Passion" and "Scale"

The global frenzy created by K-POP can no longer be denied by anyone. However, in the reality of the scale of the recording market, Japan and China lead. The key to bridging narrative (buzz) and numbers (sales) is cross-country IP design and format-specific KPIs. CD, streaming, live, and video—companies/teams that can optimize value design for each format by country and cultural sphere will dominate the next decade. Digital Music News