A restaurant and bar in Ibiza, noted for producing its own series of ambient recordings. This began in the late 1980s with casual playing of ambient music during its sunset hours (the restaurant is sited so that patrons have a good view of the sunset), bringing in various local producers and DJs. Customers began asking where they could obtain copies of the music, so the cafe began selling copies; originally, these were cassette-only. But in 1994, the cafe hired Jose Padilla to assemble a compilation album, which was released on CD and sold under the Cafe del Mar name. Subsequent volumes have all followed the same pattern: collections of various tracks, all released under the Cafe del Mar moniker.

The first five albums were released on the React Music label, but in 1999, the cafe formed its own label, Cafe del Mar Music. As of 2017, the label has released 22 "core" albums plus a huge number of "best of" and remix albums. (Some are available only as downloads.) The label also maintains its own streaming and radio shows.

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