Almost half of CDs in the UK now cost less than £10, according to a report.
Average prices have continued to fall and reached a new low of £10.40 for the year ending in September, the British Phonographic Industry (BPI) said.
It said prices of new albums had fallen by 7.6% since it began providing detailed records at the start of 2000.
The BPI said the British market had gone against global trends by showing further growth. Online music piracy is blamed for a slump in the US market.
More than 230 million albums are sold in the UK each year, according to the BPI, based on market research carried out among 10,000 consumers.
Quarterly statistics released in September showed single albums were selling for an average of £9.79.
The latest figures include double albums - hence the higher average price.
Big sellers by artists such as Dido and The Darkness have helped boost album sales, although sales of singles continue to fall - down by 6% on 2002.
The BPI said competition and ongoing campaigns among big retailers had helped maintain strong album sales.
The organisation also hailed the rise of newer formats such as Super Audio CD and DVD for providing enhanced content.
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