Whatever the rules are at a music festival, there shouldn't be any risk of losing ones knife. If security says "no knives allowed" then you have the option to go back and put it in your vehicle. Security doesn't have any legal authority to confiscate your property, that would be theft.
Of course if it were me, I'd figure out a way to carry a knife. After all, it's not a difficult matter, and it's certainly not illegal, or an arrestable offense to carry a knife into a music festival.
On a separate matter, it always surprises me when people on a KNIFE forum say "You don't need a knife."
And that makes me wonder how many people on this forum could easily go a day/week/month/year without NEEDING a knife away from home. And yet, I imagine that they carry one anyway. Maybe even two.
Personally, I don't just carry a knife for times when I know that I'm going to need it, I also carry a knife for times when I don't know I'm going to need it. That's the funny thing about life- it can be unpredictable, and you never know when a knife might come in handy.
I read a saying once, it goes something like this-"A sharp knife is mans best hedge against the uncertainties of life". This is a philosophy I agree with.
I'm sure there are countless times in my 45 years when I unexpectedly needed a knife. Of course I'm not talking about fighting off a ninja attack or performing emergency surgery, I'm talking about all the sorts of mundane tasks that pop up during the course of ones life.
Here's one such story that springs to mind because it is recent-
I took the family to the zoo. At one point inside the zoo I took off my sunglasses and noticed that the tiny philips head screw that attaches one of the earpieces had worked itself loose and was ready to fall out. These screws are tiny, too tiny to use my fingernail to turn them. So I pulled out my Leatherman Squirt, but none of the screwdrivers was small enough. So I used the knife blade as a screwdriver, it worked great, problem solved.
Now obviously this was not a life or death situation, it was a very mundane task. But that's my primary reason for carrying a knife- to perform mundane tasks. If I didn't have a knife with me, I would have had to put my glasses inside some kind of bag (to avoid losing the screw), then give it to my girlfriend to carry in her purse, then buy some cheap pair of sunglasses just for the day that I would never wear again. But that's not my idea of solving a problem. Certainly not when a simple, and cost-free solution is as readily available as my pocket knife.