A new report from trade body Confederation of the European Bicycle Industry (CONEBI) shows that the excess inventory problems that have plagued the cycling industry in recent years could be resolved by 2025.
The report, published by CONEBI – an umbrella organization representing national cycling industry associations across Europe – in time for the Eurobike show in Frankfurt next week, noted that the difficulties experienced by the bicycle market in 2023 will require a ‘reset’ moment for the industry. .
The European Bicycle Industry and Market Profile (BIMP) report also claimed that the overstock problem “could be solved by 2025” and that “effective policy measures at European level” to promote cycling and thus bicycle purchases will be essential to boosting the cycling industry as it continues to struggle in the post-pandemic landscape.
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According to the report, the market has continued to grow over the past decade, thanks to both bicycle infrastructure projects and the growing popularity of e-bikes.
However, 2023 saw a rapid decline in sales (compared to 2022, still boosted by growth during the Covid lockdown period), with total bicycle sales in Europe falling from 14.7 million to 11.7 million in 2023, while e-bike sales fell slightly more modestly: by 400,000 to 5.1 million.
Meanwhile, combined sales of bicycles and e-bikes amounted to €19.3 billion, almost nine percent less than 2022 figures.
While production fell sharply in response to the overstocking issues of 2023, the report noted that investment in production capacity continued with the construction of new factories and warehouses in a number of EU countries. These investments totaled more than €1.9 billion, compared to €2.1 billion in 2022, reflecting “continued confidence and commitment to growth,” the report said.
The report also shows that, based on information from 1,200 bicycle companies across Europe, employment has fallen by an average of 5.5 percent compared to 2022. However, this figure varies widely within Europe.
“Effective policies at European level, within the framework of the European Green Deal and of a solid EU industrial strategy – such as the recent European Declaration on Cycling and the Mobility Industries Transition Pathway Report – are essential to boost both cycling and the cycling industry across Europe,” said CONEBI President Massimo Panzeri. “CONEBI’s national member organisations also play a central role in this.”
> Cycle market ‘significantly worse than expected’, Halfords warns – with ‘glaring failure from Wiggle’ and widespread evidence of ‘another year of decline’
CONEBI’s slightly optimistic report comes in the same week that Halfords published its preliminary financial results for the year to March 2024, which saw profits fall amid “significantly worse than expected” cycling performance and a fall in bike sales of up to 30 per cent below pre-Covid levels.
The major retailer, the UK’s largest provider of bicycle sales and services, highlighted the “high-profile failure” of Wiggle Chain Reaction as evidence of the “challenging” market situation, noting that “significant pressure” was being felt as a result of the industry’s widespread sell-off.
It also reported that bicycle volumes were down four percent compared to the previous financial year, “well behind” forecasts, with the now familiar “worse than expected headwinds” – namely the cost of living crisis, inflation, low consumer confidence for major discretionary purchases and poor spring weather – all blamed for contributing to the “very challenging market conditions” currently facing the bicycle industry.