Size of the Guitar Floor-Effects Market

There is no global data showing the size and value of the annual sales of the guitar floor-effects market.  The Global Market Trades global data groups floor-effects pedals into one larger category of electronic processors.

However a global estimate can be projected from extrapolating the USA data from the 2013 and 2014 NAMM USA data (see below Effects Pedals Chart for USA sales).

The USA makes up just over 40% of the global sales (see USA Overview below). Therefore that data can be extrapolated to give a global number.

Source: USA Guitar effects unit sales and retail value in the USA sourced from the Music Trades April 2015.

To place this in perspective, Red Witch is forecasting sales in the 2016 year of around 9,000 units with a street (retail) value of around NZ$1.65m.


SOURCE: The Music Trades International Almanac 2014

SOURCE: The Music Trades International Almanac 2014

Global Music Products Market Overview

Since the GFC the global market for the sales of music products has been steadily increasing, year on year.  In 2012, they produced a 2.4% gain in global music products sales to $16.7 billion, marking the fourth straight year of sales gains, steadily tracking back to the pre-recession peak of $18.2 billion set in 2007.

 

 

 

Note: yes they have missed NZ completely off the map of the world...

The NAMM Global Report contains important industry information and statistics, and industry trends from 21 countries Red Witch is either currently doing business in, or will do business in, in the next five years, including: Argentina, Australia, Austria, Brazil, Canada, China, Finland, Germany, India, Italy, Japan, Mexico, Norway, Russia, South Korea, Spain, Sweden, Switzerland, Czech Republic, United Kingdom and the United States. Click here to view or download the full report.

USA Music Products Overview

In 2014 the USA Music Products industry (including all musical instruments and audio products - not the sale of music) continued its recovery from the financial crisis, posting its 5th consecutive year over year sales gain, reaching USD $7.03 billion, a 3.3% gain over last year's level of USD $6.8 billion. The rise closely tracks the trajectory of the national US economy.

Value of the USA, Music Products market. Source: The Music Trades April 2015

Value of the USA, Music Products market. Source: The Music Trades April 2015

The lower sales volume doesn't necessarily reflect a decreased interest in music making. Moore's Law is applicable to the music industry with the capability of micro processors doubling every two years and the price dropping. The impact of higher processing power at a lower price is estimated to have saved consumers USD $1.5 billion a year or, in other words, cost the music industry, suppliers and retailers, USD $1.5 billion loss in annual revenues.

One of the brightest spots in the market in 2014 was effects pedals, which enjoyed a robust 13% increase in retail value. Chalk up the gains to fickle guitarists. A decade ago, they were clamouring for high-tech multi-effects devices that packed dozens of processors into a single floor package. Today, they have returned to the tonal authenticity of the humble pedal. The category has also attracted dozens of entrepreneurs who, like micro-brewers, have found a market for their personal tonal preferences.
— Source: The Music Trades April 2015

The USA accounts for just over 40% of the global music market.

The USA accounts for just over 40% of the global music market.

"The retail value of music products shipped in 2013 (in the USA) advanced 2.1% to $6.81 billion, basically keeping pace with the tepid growth of the economy. Although 2013 represents the fourth straight year of sales gains, shipments are still below the pre-financial crisis peak.

On a positive note, however, retailers and suppliers seem to have finally finished with the arduous task of recalibrating their business to the more austere climate. The resulting stability has improved the outlook dramatically, enabling businesses to once again focus their energies on rekindling growth".

 

The Global Music Trades Industry is relatively static but stable. The graph above shows the 10-year average for the USA, which accounts for just over 40% of the world market. The effect of the GFC can clearly be seen, but the industry is growing again. Source: 2014 NAMM Global Report (National Association of Music Merchants)

The Global Music Trades Industry is relatively static but stable. The graph above shows the 10-year average for the USA, which accounts for just over 40% of the world market. The effect of the GFC can clearly be seen, but the industry is growing again.

Source: 2014 NAMM Global Report (National Association of Music Merchants)

The Floor-Effects segment has shown the most consistent growth of all segments over a 10 year period with 36.55% (Ukuleles have surged in more recent years but data only goes back five years and comes off a small base). Note: This chart doesn't include the latest data which shows a further 13% growth in floor effects in the USA in retail value in 2014. Source: 2014 NAMM Global Report (National Association of Music Merchants)

The Floor-Effects segment has shown the most consistent growth of all segments over a 10 year period with 36.55% (Ukuleles have surged in more recent years but data only goes back five years and comes off a small base). Note: This chart doesn't include the latest data which shows a further 13% growth in floor effects in the USA in retail value in 2014.

Source: 2014 NAMM Global Report (National Association of Music Merchants)


Red Witch Dealers

While some of Red Witch's top performing dealers are small privately owned businesses, new dealers that have come on stream in the last quarter of the FYE 2015, accounted for US$1.178 billion in total music products turnover between them in the 2013 year. Nine of the top twenty dealers now account for over US$2.1 billion in sales (Source: Music Trades Almanac 2014).