Climbing the sound ladder: Why consumers are trading up their headphones

by Aishwarya Bhide, Market Analyst, Futuresource Consulting 

The global headphones market is no stranger to disruption. True wireless (TWS) devices reshaped expectations; open-ear models have expanded the form factor mix; and over-ears have carved out their own premium growth story. Yet perhaps the most defining shift right now is financial, with an upsurge of consumers taking their headphones purchases to new heights. 

Sub-$100 headphones used to dominate, but today more people are moving into the mass-premium space, where models are priced between $200 and $600. Our latest research report shows that this sweet spot is becoming the new engine of growth, reflecting a blend of changing demographics, heightened expectations and brand strategies that put design and experience alongside audio fidelity. 

What’s fuelling the headphone climb?

The shift begins with consumer perception and behaviour. For many, headphones have moved from utility to identity. Our Audio Tech Lifestyles survey shows that buyers are prioritising functionality, fit, convenience and aesthetics, as well as audio quality. Biometrics, adaptive noise-cancelling and spatial audio features all now sit high on the wish list, especially among younger audiences who see headphones as an extension of their digital lives. 

However, it’s not the same triggers in play across all categories. TWS dominates in volume, and continues to push innovation at lower price tiers, forecast to generate $40 billion in 2025 from 376 million units. In mass-premium the over-ear segment is holding ground, driven by demand for superior sound quality, comfort and battery life, and will generate $11.6 billion in 2025. Together, these categories underline how much consumers are willing to pay when performance and functionality align. 

Demographics and design  

The upward climb is also being powered by a shift in demographics. Younger buyers, especially Gen Z and millennials, are placing a premium on brand identity, sleek design and multifunctionality. For this audience, form is often as important as function. A striking finish, luxury material choice, or a brand tie-in can be just as compelling as an extra decibel of performance. 

At the same time, older demographics, particularly professionals and hybrid workers, continue to invest in noise-cancelling and comfort-focused models that make long listening sessions viable. Together, these groups are fuelling momentum in the mid-to-high price brackets. 

Who’s winning in mass-premium?

Several brands have strong positioning strategies. Apple, through AirPods Max, maintains visibility at the upper end of the segment, using seamless ecosystem integration as its USP. Sony and Bose continue to refine their flagship ranges, blending high-fidelity sound with comfort and design flair. Sennheiser and Bowers & Wilkins are carving out audiophile-adjacent niches, while Beats taps into cultural and fashion cues to stay relevant with younger buyers. 

While strategies vary, the underlying goal is the same: stay aspirational while being accessible. By keeping their premium lines within reach of a wider audience, and by refreshing features fast enough to feel current, these brands are anchoring the $200 to $600 market as the space to watch. 

A continuing opportunity

Futuresource forecasts show that the mass-premium segment will continue to expand steadily through to 2029. Value growth will outpace volume growth, reflecting both higher price points and the growing consumer appetite for headphones that combine audio and aesthetic. 

The appeal of headphones as multi-context devices, used for work, entertainment, travel, wellness and even fitness tracking, is a core component of this trajectory. Mass-premium headphones are set to become the go-to category for balancing ambition with attainability. 

See the bigger picture

Headphones have come a long way from basic audio delivery tools. Today, they’re status symbols, productivity companions and wellness monitors. Consumers are showing they’ll pay more when products deliver, and brands that continue to innovate around both sound and style will attract demand. 

To understand these dynamics in full, including detailed market forecasts, brand share analysis and regional breakouts, explore the latest Futuresource Headphones Market Report. Or join us at the Futuresource Audio Collaborative on 12 November 2025 at the Soho Hotel in London, where we’ll bring together leading voices across the audio ecosystem to unpack the future of listening.