The Live Music Market: Music Lovers Are in Their Concert Era

Between a post-pandemic revival and big names in the music industry going on tour, such as Taylor Swift’s Eras Tour, Beyoncé’s Renaissance Tour, and Harry Styles’ Love On Tour, the live music and events industry has seen huge growth. Mintel’s data shows attendance for both concerts and festivals has been on the rise in 2024, nearly returning to pre-pandemic levels. This was, in part, due to inflation, including rising ticket prices and the cost of ancillary spend during the cost-of-living crisis.

While big acts such as those mentioned above celebrate enormous successes, where does that leave smaller, grassroots venues? To gain insight into this and other questions surrounding concerts and festivals in the UK, explore further with Mintel, as we will be looking at the post-pandemic recovery of the UK live music market, how technological advancement is revolutionising the industry, and how trends and consumer behaviours are changing.

The UK live music market value reached an estimated £3.3 billion in 2023, which marked the first full post-pandemic year for live music events. This impressive bounce back in the industry can be traced back to pent-up demand following years of restrictions and cancellations in this sector as well as higher prices due to inflation – which did not, however, deter gig goers from digging deep into their purses.

While big events and venues thrive, smaller venues are still struggling with the post-COVID impact, resulting in ‘two-tier’ challenges in the concert and music festival market. Unfortunately, the strength of the top-level market is in sharp contrast to a much more vulnerable grassroots live music sector that is not thriving from renewed, post-pandemic interest. This growing ‘two-tier’ split poses a threat to the long-term sustainability of the sector.

As well as big-name international artists, many music fans travelling abroad are interested in experiencing the local grassroots scene in their destination. This feeds into a key contemporary travel trend of ‘authentic discovery’. Positioning small grassroots venues as the place to experience the authentic, local music scene is a key messaging element in music festival advertising. To make the most of this, live event discovery platforms could offer suggestions based on intended holiday locations.

Social media – which is becoming more and more important in the live music market, might also play a key role here. Platforms can develop a hyperlocal ‘what’s on in my area’ approach, helping to support the struggling grassroots local music scene.

Underneath the surface level of growth, the concert and music festival market is seeing highly contradictory behaviour patterns. Over half of UK fans say they have reduced the number of events they attend as a result of rising ticket prices. To spread out costs, they are seeking flexible payment schemes, opening up opportunities for ticket sellers and venues to include these in their offers.

Of course, inflation is one reason for high ticket prices, but demand for large-scale ‘must-see’ events is also driving a growing trend towards dynamic pricing models on ticketing sites, thus further inflating prices for sold-out events on resale sites: Almost 40% of UK attendees in the last 12 months paid significantly more for a music concert/festival ticket from a resale site.

In August 2021, the Competition and Markets Authority (CMA) recommended a significant tightening of regulations on the UK’s growing live events secondary ticketing sector. In March 2024, Sir Keir Starmer announced that an incoming Labour Government would cap the resale price of tickets, restrict the number of tickets individual re-sellers could list, and give the CMA the powers it needed to take swift action against touts and platforms.

Technology, such as live streaming, virtual and augmented reality, and AI-driven avatar concerts have already caused a ripple throughout the live music market, and will continue to open up new revenue streams, while also reinforcing the consumer appetite for the ‘real thing’.

In the wake of ABBA Voyage, a new wave of ‘avatar gigs’ is set to extend the longevity of iconic acts no longer available to see in the flesh. The AI and hologram technologies that make experiences like this possible are beginning to open up major new revenue streams for live performances, and the success of ABBA Voyage is set to be followed by Elvis and Kiss. Immersive experience specialist Layered Reality is launching Elvis Evolution in Tokyo, Berlin, Las Vegas, and London in 2024.

ABBA Voyage’s two-year run, which has been extended to January 2025 has demonstrated the nostalgic appeal of this new form, with those aged 50 to 60 said to make up the biggest demographic. It has also drawn in younger fans, with one in 10 said to be under 24. The ‘Throwback Trend’ explores the powerful appeal of nostalgia in popular culture, even among those too young to have experienced the original – something that can be leveraged across industries, but lends itself especially in the live music market and music festival advertising.

“Long live all the mountains we moved. I had the time of my life fighting dragons with you” sings Taylor Swift in her song ‘Long Live’, capturing the sense of community and togetherness that are a key element among many concert and festival attendees, as they get to socialise with friends, family, and new people. While seeing a particular band or act is the top reason to attend concerts and festivals, nearly half of future attendees in Germany prioritise other factors, such as the social aspect.

In the UK, there is a trend of multi-generational family groups attending festivals, with parents introducing their kids to musical culture. This reflects the importance of shared experiences and bonding across generations.

Beyond family bonding experiences, events can foster a sense of belonging and community support. Numerous ‘fan projects’ on The Eras Tour testify this. For example, the making and trading of friendship bracelets with both friends and strangers at the event, or the fan chants at specific parts throughout the concert, relating to the performance on stage. These and various other fan projects that started in one location were then shared via social media where they achieved virality and got picked up in subsequent shows all over the world.

This also highlights the key role of social media in concert and music festival branding: One third of UK social media users search Facebook to find out about events, including concerts and festivals. Consumers also use social media with regards to the live music market to follow events – as we have seen, again, with The Eras Tour that had numerous fans who weren’t able to score tickets follow the shows online via livestreams. Platforms such as Instagram also provide musicians with a space to connect with their fans through posts where they can address them directly or by sharing behind-the-scenes and bonus content.

On her Instagram page, Taylor Swift has made it a habit to thank and praise the crowds after wrapping up her concerts in every city she played in, alongside some candid shots of her performances in that city.

All of this goes to show that, while the musical performance is of course the central part, there are aspects that are almost as important for people attending concerts and festivals. This presents opportunities for marketers to resonate by promoting concerts and festivals as rounded, special experiences that attendees will cherish for a long time after the event.

Looking ahead, the two-tier split in the live music market will continue to grow: On the one hand, there is a cohort of ‘superfans’, willing to spend large sums on their concert/festival experience, driving value growth. On the other hand, smaller, grassroots venues will face continued challenges and closures as they struggle to stay afloat.

Advancement in technology will continue to revolutionise the concert and music festival market through live streaming, virtual/augmented reality, and AI-driven avatar concerts, which will open up new revenue streams, while also reinforcing the consumer appetite for the ‘real thing’.

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