Icelandic music gains ground as recorded sales reach new high

Sales of recorded music in Iceland totalled nearly 1.7 billion krónur in 2025, the highest nominal figure since records began, while sales of Icelandic music rose 13 per cent, mbl.is reported.

The total was also the highest in real terms since 2005, according to figures from the Association of Record Producers. Sales of Icelandic music increased more than three times as fast as sales of foreign music, which rose 3.9 per cent. The Icelandic share of total sales climbed for the third year in a row, reaching 22.2 per cent, up from 20.8 per cent in 2024.

Ásmundur Jónsson, a record label executive at Smekkleysa and a board member of the association, said Icelandic music’s share of overall listening had also risen in recent years. He estimated that streaming consumption was split about 80 per cent foreign music and 20 per cent Icelandic music. An earlier report by Morgunblaðið cited indications that Icelandic music accounted for just 17 per cent of the music people in Iceland streamed.

Streaming generated 87 per cent of the value of recorded music sales, while physical albums accounted for about 13 per cent. Physical sales rose 17 per cent year on year, their highest level since 2015. Icelandic albums made up the best-selling physical releases, and all 16 top-selling albums on CD and vinyl were Icelandic.

Laufey’s album A Matter of Time was the year’s best-selling album overall, followed by releases by Ásgeir Trausti and Birnir. Other strong sellers included Páll Óskar, Benni Hemm Hemm, Víkingur Heiðar Ólafsson and Spacestation.

The most-streamed albums included Vögguvísur by Hafdís Huld and albums by Herra Hnetusmjör and Birnir. Daniil, Aron Can, Iceguys, Saint Pete and Bríet also ranked highly.

Jónsson said a coordinated effort could help increase listening to Icelandic music. He noted that the association had run a similar campaign about a decade ago and said it had produced results. Icelandic music consumption remained low compared with other countries, including Denmark, he said, but he was optimistic that the landscape could change over the next two years. He described the local music scene as exceptionally vibrant.

Spotify’s turnover in Iceland has multiplied in recent years, bringing higher revenues for music rights holders, though most of the money goes to foreign rights holders. Paid subscriptions to music services grew by nearly 4 per cent between 2024 and 2025, while revenues rose 4.4 per cent.