Music fans are buying British - with the three top-selling albums of the year all produced by home-grown talent.
Emeli Sande's debut album, Our Version Of Events, was the biggest seller with 1.4 million copies sold in 2012, according to figures from the Official Charts Company.
Adele's 21 - a huge hit when it was first released in 2011 - and + by Ed Sheeran took the next two spots with top 10 entries for other UK acts including One Direction's Up All Night, Mumford & Sons' Babel and Olly Murs's Right Place Right Time.
Coldplay's Mylo Xyloto was also in the top 10.
The figures show music fans streamed audio tracks more than 3.7 billion times during 2012 with "Somebody That I Used To Know" by Gotye featuring Kimbra, "Call Me Maybe" by Carly Rae Jepsen and "Titanium" by David Guetta featuring Sia the three most-streamed tracks of the year.
Sales of digital albums rose 14.8% to 30.5 million, although sales of albums on CD declined 19.5% year-on-year to 69.4 million.
Despite the advance of digital, CDs still accounted for more than two-thirds (69.1%) of total sales compared to a 30.4% share for digital albums and 0.4% for vinyl.
Digital dominated the singles market, which saw a 6% sales increase to 188.6 million in 2012, with the overwhelming majority (99.6%) being sold digitally.
Tony Wadsworth, chairman of trade body the British Phonographic Industry (BPI), said: "British artists continue to resonate strongly with music fans in their home territory, with albums by Emeli Sande, Adele and Ed Sheeran topping the end-of-year charts.
"The domestic success of albums from Mumford & Sons and One Direction has been replicated abroad - both British acts have achieved massive success in the US."
The Official Charts Company Top 10 Best-Selling Albums of 2012
1. Our Version Of Events - Emeli Sande
2. 21 - Adele
3. +- Ed Sheeran
4. Born To Die - Lana Del Rey
5. Up All Night - One Direction
6. Babel- Mumford & Sons
7. Right Place Right Time - Olly Murs
8. Christmas - Michael Buble
9. Mylo Xyloto - Coldplay
10. Unapologetic - Rihanna
The Official Charts Company Top 10 Best-Selling Singles of 2012
1. Somebody That I Used To Know - Gotye ft Kimbra
2. Call Me Maybe - Carly Rae Jepsen
3. We Are Young - Fun ft. Janelle Monae
4. Titanium - David Guetta ft Sia
5. Impossible - James Arthur
6. Gangnam Style - Psy
7. Starships - Nicki Minaj
8. Domino - Jessie J
9. Payphone - Maroon 5 ft Wiz Khalifa
10. Wild Ones - Flo Rida ft Sia