Bike Biz Battles a Slump: 2024 E-Bike Sales and Revenue Dive
Decline in Bicycle Industry Profit Margins: Prices Dip Significantly in 2024 - Dropping sales figures within the bicycle market - Anticipated major price reductions by 2024
Let's cut to the chase, shall we? The bike industry kicked 2024 off with a thud, and it ain't gonna sugarcoat it for ya! According to the wise folks at EY, the number of E-bikes sold dropped a cool two percent to a mere 2.0 million, and the revenue plummeted a staggering twelve percent to a humble 5.4 billion euros. The picture's just as bleak for mechanical bikes – sales slumped by a measly five percent to a mere 1.8 million.
Stefan Mohr from EY tried to spin things positively, explaining, "The German bike industry had to bear the brunt of sizable revenue losses again last year. However, the declines of the past two years must be viewed in the context of the boom experienced during the pandemic years. Despite the 2024 drop, industry revenue was still a whopping 58 percent higher than in 2019, and revenue from E-bikes was almost double that of 2019!"
Now, you might be thinking, "So, things were good up until 2024, right?" Well, not quite! While it's true that the German market dominates Europe in total sales, hitting a whopping 6.3 billion euros, the industry's really been battling a perfect storm. Here's the lowdown on what's been causing all the commotion:
- Demand and Prices: After the pandemic fueled a newfound love for cycling, the bike market boomed for years. However, 2024 saw falling demand and lower prices as the world adjusted to more normal circumstances. In fact, the average price for an E-bike dropped by ten percent to a moderate 2,650 euros.
- Inventory issues: Many bike retailers found themselves saddled with high inventories during the boom years. As demand softened, these overstocked warehouses compounded the problem, adding pressure on prices and revenue.
- Economic factors: The German economy slowed down in 2024, mirroring the decline in bicycle sales.
- Employment: The bicycle industry saw a workforce decrease from 77,500 in 2023 to 76,700 in 2024.
E-bikes, in particular, took a beating in 2024, with sales dropping about 2 percent to 2 million units and revenue falling 12 percent to €5.4 billion. This price drop and surplus of e-bikes on the market led to a notable shift.
But don't start pouring one out just yet! As the Eurobike bicycle trade fair kicks off, the ZIV recently presented market data for the first quarter. It looks like there's a glimmer of hope on the horizon – mechanical bicycle sales saw a ten percent increase compared to 2023's first quarter, to 385,000 sold units. E-bike sales also saw an 11 percent increase to 500,000.
So, while 2024 saw a painful bump in the road for the bike industry, it seems things are looking up, hopefully spelling the end of this downturn!
- The decline in employment within the bicycle industry, from 77,500 in 2023 to 76,700 in 2024, is a concern for the sector.
- The bicycle industry, despite a 2 percent decrease in E-bike sales and a 12 percent decrease in revenue in 2024, is showing signs of recovery, with a 10 percent increase in mechanical bicycle sales in the first quarter of 2025 and an 11 percent increase in E-bike sales compared to the same period in 2024.
