The trend has become so widespread that it’s earned its own name: the “analog economy.” And it’s not just hype. In Canada, sales of vinyl and other physical music formats climbed 34.5% between 2021 and 2023, reaching nearly $85 million, even as CD and digital download sales continued to decline.
While it’s easy to mistake the movement for nostalgia, that explanation falls apart when you consider who’s driving much of the demand. Gen Z never experienced the pre-digital world they’re supposedly nostalgic for.
The real reason analog endures
So what’s really at play with the analog economy? According to values expert David Allison, founder of the Valuegraphics Project, the answer has less to do with technology and more to do with human psychology.
“We only make any decisions about anything because it gives us more of what matters most to us,” Allison says. “And what matters most is what our values are.” That subtle distinction reframes the entire conversation.
Rather than viewing vinyl records or paper notebooks as relics from another era, Allison sees them as tools people use to satisfy more deeply held values. For one person, that might be creativity. For another, self-expression. Others may be seeking a stronger sense of community, belonging or even security.
His own preference for pen and paper illustrates the point. “There’s something secure about knowing that the notes that I’m taking are in this pad with my pen,” he says. “It’s in the book that I wrote in with my pen.”
That feeling of tangible permanence offers something digital tools sometimes can’t: confidence that your thoughts won’t disappear into another forgotten app or buried Cloud folder.
Why analog is worth the premium
Ironically, Allison doesn’t believe this movement represents a rejection of technology. Instead, he argues that technology itself is introducing younger consumers to analog alternatives.
“The only reason Gen Z is aware of this stuff is because the technology is showing it to us,” he says. Social media exposes users to vinyl collectors, film photographers, journaling communities, and digital detox retreats. Once those options start appearing in your feed, people naturally gravitate toward the ones that align with what matters most to them.
That also helps explain why cash-strapped young adults are willing to spend meaningful amounts of money on products that often cost more than their digital counterparts.
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From a purely practical standpoint, a free notes app should outperform a $60 planner. Streaming services offer millions of songs for the price of a monthly subscription, while vinyl records require expensive equipment and often cost $40 or more per single album (not to mention the care and maintenance they require).
But purchasing decisions are not always rational. Drawing on years of global research, Allison says consumers consistently demonstrate a willingness to pay roughly 12% to 15% more for products that align with their values. The premium isn’t necessarily for the product itself, but for what the product represents to the consumer.
In other words, if a notebook makes someone feel more creative, organized, or original, or if a film camera helps them slow down and become more intentional with the photos they take, the purchase delivers emotional value that extends beyond its function.
Market values, not generations
Brands listen up. This is an important lesson for businesses hoping to capitalize on the analog economy.
Manufacturers of records, stationery, cameras, and office supplies have all reported renewed interest in products that many once assumed were headed for obsolescence. But Allison cautions against interpreting this as simply another “Gen Z trend.” His research suggests people within Gen Z share surprisingly little in common when it comes to the values that drive their decisions. “Marketing to Gen Z is a fool’s game,” he says.
Instead of targeting demographics, he argues that businesses should focus on the motivations that cut across generations. A brand built around creativity, craftsmanship, or self-expression can resonate with consumers in their 20s just as easily as those in their 60s.
