In September, several German media outlets reported that the century-old piano manufacturer Grotrian-Steinweg has filed for bankruptcy, according to an announcement from the Brunswick District Court. There are indications that the company may continue operations in some form, possibly seeking new investors or a restructuring plan.
The German union IG Metall attributes Grotrian-Steinweg’s downfall to the shrinking global piano market and the company’s long-standing financial difficulties. As of August, employee salaries have reportedly ceased.
This news has sent shockwaves through the global piano industry. What deeper trends in the industry are reflected by the decline of this “piano craze”?
With a history spanning over a century, Grotrian-Steinweg has undoubtedly been one of the most influential brands in the piano sector, tracing its origins back to the 19th century.
In 1830, German piano maker Friedrich Grotrian met C.F. Theodor Steinweg, another piano manufacturer, in Seesen, and together they founded the Grotrian-Steinweg brand.
In 1851, C.F. Theodor Steinweg’s father, Heinrich Steinweg, fled to the United States to escape war, changing his surname to Steinway to better fit American pronunciation, and founded STEINWAY & SONS two years later.
C.F. Theodor Steinweg followed his father to America in 1865, transferring his shares in Grotrian-Steinweg to Wilhelm Grotrian, Friedrich Grotrian’s son. This marked the definitive separation of the two renowned piano brands, Grotrian-Steinweg and Steinway & Sons.
In 1972, CBS acquired Steinway & Sons and noticed the presence of Grotrian-Steinweg in the U.S. market. Concerned about potential consumer confusion due to the similar names and qualities, CBS initiated a trademark lawsuit, prohibiting Grotrian-Steinweg from using the latter part of its name in U.S. sales.
In 1995, Selmer Industries acquired Steinway & Sons, renaming it Steinway Musical Instruments the following year, now known as the American Steinway.
By 2000, piano maker Burkhard Stein became the general manager of the Grotrian-Steinweg family business, successfully expanding its market share in Asia and the U.S. and exporting to over 70 countries worldwide.
In 2015, Hong Kong’s Best Music Group acquired a majority stake in Grotrian-Steinweg. Burkhard Stein noted that Grotrian-Steinweg pianos continue to be made in Brunswick, Germany, with investments from Best Music aimed at increasing production capacity to better meet Asian market demand.
Reports from NDR indicate that Grotrian-Steinweg lacks its own capital in Germany and relies entirely on financial support from its parent company, Best Music Group. However, the ongoing “collapse” of the piano market has been a hot topic, and Best Music’s funds have struggled to sustain Grotrian-Steinweg’s operations.
Currently, the Grotrian series pianos are priced between 30,000 yuan for upright pianos and 1.48 million yuan for grand pianos, while second-hand models are available for as low as 7,888 yuan.
Once a symbol of middle-class cultural ideals, the piano now faces a decline in demand. The challenges confronting Grotrian-Steinweg highlight the pessimistic market sentiment within the piano industry, which seems to be undergoing a significant shakeout.
In recent years, changes in social and economic structures, along with shifts in educational paradigms, have led many families to reassess their approach to art education. As interest in music education shifts towards fostering enjoyment rather than rigorous training, consumers are increasingly turning to digital and smart instruments, prompting piano manufacturers to embrace digital transformation.
According to a report by Spherical Insights & Consulting, the global digital piano market was valued at $1.072 billion in 2023, with projections reaching $1.839 billion by 2033, reflecting an average annual growth rate of approximately 5.55%. In contrast, the traditional piano market, which includes grand and upright pianos, was valued at around $2.36 billion in 2023 and is expected to grow to about $2.8 billion by 2032, with a slower average growth rate of around 1.9%.
While the traditional piano market remains larger, its growth is sluggish. Digital pianos are gaining popularity due to their portability, multifunctionality, and integration with modern technology.
The report highlights that digital pianos effectively serve as alternatives to traditional pianos in terms of sound quality and playing experience. They offer various playing styles and can replicate different piano tones, catering to users’ diverse performance needs.
Compact, accessible, and featuring built-in lessons and illuminated keys, digital pianos have increased consumer interest. The market now boasts numerous competitively priced smart instruments, such as TheOne Piano and Liberlive C1 automatic guitars, making music education and play more accessible to the public.
For instance, on September 25, the instrument brand Loog partnered with the language-learning app Duolingo to launch a portable piano designed for beginners. Measuring 480.8 mm in length and weighing 1.65 kg, it features built-in stereo speakers and a rechargeable battery that lasts up to eight hours, along with a smartphone stand. Duolingo’s app provides courses applicable to any piano, further enticing traditional piano players.
Considering the global piano industry’s development trajectory, the cooling of the piano craze may represent a necessary phase in the industry’s shift from quantity-driven growth to a focus on quality and a transformation towards consumer-driven demand.
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