The overstocking problems that have plagued the cycling industry over the past few years could be resolved by 2025, according to a new report by industry group the Confederation of the European Bicycle Industry (CONEBI).
A report published by CONEBI – the umbrella organization that represents national cycling industry associations across Europe – in time for next week’s Eurobike show in Frankfurt, noted that the difficulties experienced by the cycling market in 2023 provided the industry with a “reset” moment. .
The European Bicycle Industry and Market Profile (BIMP) report also claimed that the problem of overstocking “could be solved by 2025” and that “effective policies at European level” to promote cycling, and therefore bicycle purchases, are essential to boosting cycling an industry still struggling in a post-pandemic environment.
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According to the report, the market has continued to grow over the past decade, both thanks to cycling infrastructure projects and the growing popularity of e-bikes.
However, there was a rapid decline in sales in 2023 (compared to 2022, which was still supported by the growth experienced 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, somewhat more modestly, by 400,000 to 5.1 million.
Meanwhile, total sales of bicycles and e-bikes reached 19.3 billion euros, down almost nine percent from 2022.
While production fell sharply in response to commodity glut issues in 2023, the report still noted that investment in manufacturing 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,” according to the report.
The report also found that, based on information provided by 1,200 cycling companies across Europe, employment fell by an average of 5.5 percent compared to 2022, although this figure varied widely across Europe.
“Effective policies at European level under the European Green Deal and a strong EU industrial strategy – such as the recent European Declaration on Cycling and the Mobility Sector Transition Path Report – are essential to support both cycling and the cycling industry across Europe,” said the President CONEBI Massimo Panzeri. “CONEBI’s national member organizations also play a key role in this.”
> Cycling market ‘significantly worse than expected’ Halfords warns – with ‘significant Wiggle failure’ and widespread evidence of ‘another year of decline’ in sales
The somewhat upbeat CONEBI report comes in the same week that Halfords published its preliminary financial results for the year to March 2024, which saw its profits fall amid “significantly worse than expected” cycling performance and bike sales down 30 per cent below pre-Covid levels .
The major retailer, the UK’s largest provider of cycling sales and services, highlighted Wiggle Chain Reaction’s “significant failure” as evidence of a “challenging” market situation, noting that “significant pressure” was being felt due to widespread industry sales.
It also said its cycling volumes were down four per cent on the previous financial year, “well below” forecasts, with now known “worse than expected headwinds” – namely the cost of living crisis, inflation, low consumer confidence in large discretionary purchases and poor spring weather all contribute to the “very challenging market conditions” currently facing the cycling industry.