The global recorded-music market grew 18.5% in 2021 to hit revenue of $25.9b, according to the International Federation of the Phonographic Industry (IFPI). Subscription streaming powered a seventh year of growth.

Subscription revenue grew 21.9% to $12.3b last year, accounting for 47.3% of the global market. There were 523m paid users at the end of the year, according to IFPI’s Global Music Report 2022. Total streaming, encompassing ad-supported, grew 24.3% to reach $16.9b or 65% of global recorded-music revenue.

In 2021 the physical market grew for the first time in 20 years, by 16.1%, to reach $5b. This was partly driven by a recovery in physical retail following the dip experienced in 2020 due to the COVID-19 pandemic. Downloads fell 15.3% to $839.3m.

Performance rights rose 4% to $2.4b. Sync revenue was also up, by 22% to $549.1m.

Regionally, the U.S. and Canada grew by 22% in 2021, while revenue in Europe rose 15.4%. Thanks in part to the return of growth in Japan, Asia also reported double-digit revenue growth, of 16.1%.

The Middle East and North Africa recorded the fastest growth rate, with global revenue rising 35%. Latin America also recorded one of the highest growth rates, with a global increase of 31.2%.

Said IFPI CEO Frances Moore: “Around the world, record companies are engaging at a very local level to support music cultures and develop emerging music ecosystems—championing local music and creating opportunities for it to reach a global audience. As more markets mature, they join with and contribute to the rich, globally interconnected music world.”

The U.S. topped the list of IFPI’s Top 10 markets last year, followed by Japan, the U.K., Germany and France. China, South Korea, Canada, Australia and Italy complete the list.