Cycling industry witnessed decline in revenue during 2024 - Cycling industry saw a downturn in 2024, registering decreased revenue compared to previous years
Stroll through the streets, and you'll notice a noticeable decline in the hustle and bustle of the bike market. The revenue rollercoaster ride from 2019 to 2022 hit a bump in 2024, with companies grappling with falling demand, slashed prices, and legacy overstocked warehouses, according to a recent study.
From 16.5 billion euros in 2019 to a whopping 29.3 billion euros in 2022, the biking business was booming. But, considering inflation, the numbers didn't expand since 2022. Last year's economic crisis painted an unmistakable picture on the bike market.
The study covers manufacturing, retail, and services associated with the bike industry. Construction markets and online providers are not part of the picture.
However, recent surveys by think tank T3 and Future Bike hint at a brighter future. The mood in the bike industry has improved in recent months, with companies reporting a "significantly more positive" business condition and normalization of inventory levels. Survey responses from Future Bike member companies show that as many as 70% anticipate a positive business development.
The bicycle association appeals to the German government for support, urging parallels with other vehicle industries in the country. They suggest measures such as investing in digitalization, securing supply chain resiliency, promoting sustainable production, and considering e-bikes in e-mobility initiatives. They also push for securing the company bike leasing in the income tax law, and advocate for increased bicycle infrastructure funding.
With the bike infrastructure often outdated and insufficient, they propose investing 30 euros per federal citizen annually to make the bike a "central means of transport" within an efficient and high-performance mobility system.
Surprisingly, the industry's woes stem from the demand дроп after the pandemic-fueled bike boom, pricing pressures, overstocked inventories, aggressive discounting, and quality issues. Sector giants like Canyon experienced net losses in 2024, despite stable sales volumes, due to temporary sales suspensions and specific product recalls.
These challenges led to a drop in direct employment from 77,500 to 76,700 people, reflecting the industry's contraction. Now, the industry is seeking government support and strategic initiatives to reclaim growth and manage the current challenges.
- Despite the cycling industry's decline in 2024, with EC countries facing a substantial drop in employment in the bike sector, the industry remains hopeful, as suggested by surveys by T3 and Future Bike.
- The bicycle association, motivated by the struggles of the industry, has appealed to the German government for support, emphasizing the need for investment in digitalization, securing supply chain resiliency, promoting sustainable production, and considering e-bikes in e-mobility initiatives, aiming to make the bicycle a "central means of transport."
