Is Audiophilia a Dying Hobby or Just in Need of a Tune-Up?

Audiophilia is facing a crisis. With most enthusiasts over 55 and younger generations uninterested in high-end audio, the hobby risks fading into obscurity. Blame it on space, budget constraints, or the elitist image of the community—something needs to change.

40% of Audiophiles May Be Gone Soon, and No One Is Replacing Them

Can we make audiophilia relevant and inviting for the next generation, or is this truly the end of an era?

 

Why do you believe demand is declining? Do you have any evidence?

It’s simple economics.Have you ever considered the average debt of an American family and whether it has risen compared to previous decades? Alongside this, it’s worth reflecting on whether the economic equality index in the U.S. and globally has worsened. If it has, it indicates that fewer people have disposable income for hobbies that have grown increasingly expensive.

While it’s true that today’s millionaires have more wealth than ever, this doesn’t mean they can—or want to—spend more on high-end audio systems. Ultimately, mass production and broad market demand outweigh the consumption habits of a small group of affluent individuals. This creates challenges for industries that rely heavily on niche, luxury markets for sustained growth.

 

It’s simple economics.Have you ever considered the average debt of an American family and whether it has risen compared to previous decades? Alongside this, it’s worth reflecting on whether the economic equality index in the U.S. and globally has worsened. If it has, it indicates that fewer people have disposable income for hobbies that have grown increasingly expensive.

While it’s true that today’s millionaires have more wealth than ever, this doesn’t mean they can—or want to—spend more on high-end audio systems. Ultimately, mass production and broad market demand outweigh the consumption habits of a small group of affluent individuals. This creates challenges for industries that rely heavily on niche, luxury markets for sustained growth.

Lee seems to be the only person on this thread in denial about the decline but I do agree with him it has nothing to do with economics.

 

Lee seems to be the only person on this thread in denial about the decline but I do agree with him it has nothing to do with economics.

You and Lee might be right, but in economic downturns, discretionary spending drops as people prioritize essentials. High-end audio, being a luxury, is often seen as non-essential, leading to delayed purchases. With uncertainty, consumers shift to more practical, cost-effective options. While enthusiasts may still invest at a slower rate, I think “newer blood” will be less likely to do so.

 

Why do you believe demand is declining? Do you have any evidence?

No evidence, I think covid was a good time for the high end audio market with people staying home with trillions being pumped into the economy, demand was up even while prices were rising but that time is gone and seems things are getting back to a new normal. One example recently discussed on WBF comes to mind...

 

Why do you believe demand is declining? Do you have any evidence?

I'm with Lee on this one. I don't see demand declining. The watch industry and luxury auto industries seem to be doing well from all indications. I understand the reasoning that the debt of average consumers is rising (as it has been for the past 50 years). And I agree that high net worth individuals are increasing in numbers and wealth. This is likely to continue for the next 50 years. If this spells the decline of high end audio, it would have happened long ago. As time progresses our hobby is becoming better known (I do wish this was progressing at a more rapid pace). And by using some of the methods suggested in this forum we can expose more people to this great hobby. Keep the faith!

 

As time progresses our hobby is becoming better known (I do wish this was progressing at a more rapid pace)

Can you elaborate on what you are seeing that suggests that it is becoming better known; and, better known by whom?

 

There are new people at trade shows that express they previously had no idea about the hobby. Also, people in every day walks of life surprise me when they've actually heard of some of the brands. Every year I meet a few more people who have heard of brands within our hobby. I find the highest brand awareness on the east and west coasts of the U.S. But as I stated before, this recognizability needs to be hastened. The U.S. needs some work. In Asia, brand awareness from our hobby has found its way into avenues of pop culture.

 

Lee seems to be the only person on this thread in denial about the decline but I do agree with him it has nothing to do with economics.

I’m not in denial that decline is a possibility but I want to make sure we are thinking critically and looking at real numbers.

No one has posted any real evidence that there is a decline so far.

 

I’m not in denial that decline is a possibility but I want to make sure we are thinking critically and looking at real numbers.

Agree that if one wants a true picture data is essential. Where does one look for the data? Does the industry gather such data?

Not trying to be confrontational, just wondering how we have so many knowledgeable folks here but the data has not been posted. Anecdotal evidence is fine, but if one wants to track trends more than that is needed. Yes?

 

There's no empirical data to be had. No one in our industry would track such data. It would be great if they did... but... So, it's people working in our industry and our best observations of the trends we see and the sales we make.

So, what we have to go on is hard work, smart promotion, and a love for what we do!

 

I’m not in denial that decline is a possibility but I want to make sure we are thinking critically and looking at real numbers.

No one has posted any real evidence that there is a decline so far.

Denon, Marantz, Klipsch, and Other Legacy Audio Brands Could Disappear by 2025 as Sales Crash

Major audio brands may not survive another year as parent companies struggle to stay afloat.

www.headphonesty.com

 

I'm with Lee on this one. I don't see demand declining. The watch industry and luxury auto industries seem to be doing well from all indications.

Recent data indicates a decline in the luxury market throughout 2024. Key factors contributing to this downturn include:

• Reduced Consumer Base: Approximately 50 million consumers have exited the luxury market over the past two years, influenced by economic uncertainties and shifting consumer preferences.
  Vogue Business
  
  
• Regional Slowdowns: China, a significant driver of luxury sales, has experienced a rapid slowdown, while the U.S. market shows a progressively improving trajectory.
  Bain & Company
  
  
• Company Performance: Major luxury brands have reported declining sales and profits. For instance, LVMH reported a 14% drop in net profit for the first half of 2024, and Kering's stock price fell by more than 40% during the year.
  Business Insider
  
  
• Market Polarization: The market is becoming increasingly polarized, with only about a third of luxury brands expected to achieve positive growth in 2024, down from two-thirds in the previous year.
  Bain & Company
  
  
  two major luxury regions are China and Europe, the China's economy is facing a significant slowdown, with industrial profits contracting at their fastest rate in over a decade and GDP growth projected to decelerate to 3.3% by 2029, while Europe's modest economic growth of 0.2-0.3% per quarter in 2024 is accompanied by fiscal challenges and an aging population, both regions grappling with long-term population decline that threatens future economic stability.
  From the above information I think we can reasonably conclude that the high-end audio market may also be affected by the broader trends described.

 

A recession is when your neighbor loses his job. A depression is when you lose your job. Recessions do not usually hit all areas of the economy at the same time- it’s really bad when they do. The luxury segment typically continues growing during broad recessions. The luxury yacht industry is a good indicator of how the luxury markets are doing and the yacht industry appears to be doing quite well these days. I saw a WSJ article a short time back that said luxury purse prices had increased far above inflation since the pandemic but was now seeing some growth stagnation. Even the wealthy have limits, it appears.

When we see companies forming mergers in a particular industry, that is a sign of stagnating sales. Companies that get into trouble with cash flow, or profits look to mergers to get an influx of cash. If these companies have a good name or pedigree that gives them a perceived value and they will likely be bought. If an industry specific recession deepens, then we see closures. Sometimes closures occur because a company’s leader is not or cannot be replaced. Hifi being served by smaller sized companies seems to be vulnerable to this problem.

One thing about the high end audio market is when small, successful companies are merged into large conglomerates they seem to struggle to keep their customer base. We crave the boutique, handmade audio experience- we like components for their looks, their audio performance and their name. Some younger people will eventually get it. It’s comparable to buying a custom tailored suit or a custom made pair of shoes. I don’t think twice about buying my clothes or shoes off a rack. I did a custom tailored suit once several decades ago. It was nice but I didn’t become endeared to it. To others buying clothes off a rack would be like buying a pair of self powered wireless speakers. (Shivers down my back just thinking it.)

 

I’m not in denial that decline is a possibility but I want to make sure we are thinking critically and looking at real numbers.

No one has posted any real evidence that there is a decline so far.

Lee, you have been in denial since I met you at RMAF in 2018. I told you I had two notebooks that would defeat anything you guys had to say the next day and you are still in denial over that.

So, as I’ve said here before Futuresource Consulting has said luxury audio (components of $5,000) grew 12% in 2023 to an estimated $2.8 billion and the overall HiFi market declined 15%.

And I have little faith in critical thinking or listening of people who evaluate audio equipment solely by subjective means.

 

There's no empirical data to be had. No one in our industry would track such data. It would be great if they did... but... So, it's people working in our industry and our best observations of the trends we see and the sales we make.

So, what we have to go on is hard work, smart promotion, and a love for what we do!

Futuresource Consulting has this data.

 

Lee, you have been in denial since I met you at RMAF in 2018. I told you I had two notebooks that would defeat anything you guys had to say the next day and you are still in denial over that.

So, as I’ve said here before Futuresource Consulting has said luxury audio (components of $5,000) grew 12% in 2023 to an estimated $2.8 billion and the overall HiFi market declined 15%.

And I have little faith in critical thinking or listening of people who evaluate audio equipment solely by subjective means.

The young seem to choose the new music delivery and listening devices by cool factor, price, and convenience. That's a mix of subjective and objective.

 

The young seem to choose the new music delivery and listening devices by cool factor, price, and convenience. That's a mix of subjective and objective.

I’m going to post a link to the best audiophile article of this year. It is a combination of subjective and objective elements. And it’s a review by a young person.

 

Agree that if one wants a true picture data is essential. Where does one look for the data? Does the industry gather such data?

Not trying to be confrontational, just wondering how we have so many knowledgeable folks here but the data has not been posted. Anecdotal evidence is fine, but if one wants to track trends more than that is needed. Yes?

Lack of data is a combination of two factors: 1. The industry is too small to support good analysts, and 2. Industry is less sophisticated so less prone to create a collaborative data pool.

 

...so ready, fire, aim. Makes for tough hunting.

 

Denon, Marantz, Klipsch, and Other Legacy Audio Brands Could Disappear by 2025 as Sales Crash

Major audio brands may not survive another year as parent companies struggle to stay afloat.

www.headphonesty.com

That’s not a strong argument. The article mentions only two companies. How do we know their failure is indicative of sales everywhere and not really indicative of their own poor performance?