Believe it or not, the CD—yes, that CD— is having a resurgence. In fact, new data reveals that Gen Z seems to be buying up the outdated music format without even having a way to play it.
The info came to light in Luminate’s 2026 Midyear Report. While vinyl has been the big physical media item for over a decade, compact discs are making a huge comeback. In the first half of 2026, CD sales jumped 16 percent, to 16.3 million units. This notably soared past vinyl’s growth of only 2.4 percent.
Among artists who had a direct impact on the resurgence of CDs, K-Pop icons BTS’ 10th studio album, ARIRANG, was a big seller. However, Luminate also found that, beyond K-Pop’s overall influence, CD sales still increased 6.7% year over year, even if the whole genre was removed from the equation.
CDs were not the only big seller, as both vinyl and cassettes also grew in popularity
On a broader note, physical media seems to be having a big moment in 2026. Through the first half of the year, total physical album sales on vinyl, CDs, and cassettes reached 38.2 million units in the United States. This equates to a 7.8 percent increase.
So how did all this come about? Well, it seems that younger music fans have been driving a lot of the retro revival. The report shows that in 2026, 60 percent of Gen Z listeners said they most often listen to music from the 1990s and older. This is a massive increase from the 18 percent marker in 2021.
The new report also revealed that the way music fans are buying physical media has shifted. Indie record stores have been the largest generator of physical album sales for some time, and they continue to be. However, big-box stores like Target and Walmart took significant strides in the first half of 2026. Collectively, their music sales made up about 30% of the market.
It seems that K-Pop has been a major driver for CD sales in 2026
This brings us right back to K-Pop. Luminate cites the “collector-driven culture” of the genre as a big catalyst. Artists like BTS, ENHYPEN, and ATEEZ are some of the big retail store sellers, due mainly to things like deluxe packaging and exclusive edition albums.
As the father of some Gen Z kids, I have seen this data play out right before my eyes. I have a 13-year-old daughter who buys CDs and has a portable CD player with corded headphones. (She also keeps stealing all my old emo and pop-punk CDs, but don’t tell her I told you or she’ll be mean to me.)
I gather that the nostalgia aspect is the main component. Same as with Millennials and vinyl. There’s just something about holding a physical piece of music art, liner notes and all, that streaming can’t give you. The kids are alright.
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