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Bike industry told to “survive until 2025” as cycling market report says overstock issues “might be resolved” next year

The report also found that employment within the cycling industry fell by 5.5 per cent across Europe between 2022 and 2023

The overstock issues that have plagued the cycling industry over the past few years could be resolved by 2025, a new report by industry group the Confederation of the European Bicycle Industry (CONEBI) has claimed.

The report, published by CONEBI – an umbrella organisation which represents national bike industry associations across Europe – in time for the Eurobike show in Frankfurt next week, noted that the difficulties experienced by the cycling market during 2023 provided a “reset” moment for the industry.

The European Bicycle Industry and Market Profile (BIMP) report also claimed that the issue of overstock “might be resolved in 2025” and that “effective policies at the European level” to promote cycling, and therefore the purchase of bikes, are essential to boost the cycling industry as it continues to struggle in the post-pandemic landscape.

> “You have to dig in for the next three to five years”: What lies ahead for a struggling bike industry in 2024?

According to the report, the market has still grown long-term over the past decade, driven by both cycling infrastructure projects and the growing popularity of e-bikes.

However, 2023 saw a rapid drop in sales (compared to a 2022 still boosted 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 dropped, somewhat more modestly, by 400,000 to 5.1 million.

Meanwhile, the combined sales of bicycles and e-bikes amounted to €19.3 billion, almost nine per cent down on 2022’s figures.

While production saw a sharp decline in response to 2023’s overstock problems, the report nevertheless noted that investments in production capacity continued with new factories and warehouses being built in a number of EU countries. These investments totalled over €1.9 billion, compared to €2.1 billion in 2022, reflecting according to the report “continued confidence and dedication to growth”.

The report also found that, based on info provided by 1,200 bike companies across Europe, employment was down 5.5 per cent on average compared to 2022, though this number varied widely across Europe.

“Effective policies at the European level, within the framework of the European Green Deal and of a solid EU Industrial Strategy – like the recent European Declaration on Cycling and the report on the Transition Pathway of the Mobility Industries – are essential to boost both cycling and the cycling industry across Europe,” CONEBI president Massimo Panzeri said. “The CONEBI national member organisations have a pivotal role in this too.”

> Cycling market "significantly worse than expected", Halfords warns — with "high-profile failure of Wiggle" and widespread sales evidence of "another year of decline"

CONEBI’s somewhat optimistic report comes in the same week Halfords published its preliminary financial results for the year to March 2024, which saw its profits slashed amid “significantly worse than expected” cycling performance and bike sales dropping to 30 per cent below pre-Covid levels.

The major retailer, the largest provider of cycling sales and services in the UK, highlighted the “high-profile failure” of Wiggle Chain Reaction as evidence of the “challenging” market situation and noted that “significant pressure” was being felt due to widespread industry sales.

It also reported that its cycling volumes were down four per cent compared with the previous financial year, “far behind” the forecast, with the now-familiar “worse than anticipated headwinds” – namely the cost-of-living crisis, inflation, low consumer confidence for big discretionary purchases, and poor spring weather – all blamed for contributing to the “very challenging market conditions” facing the bike industry at the moment.

After obtaining a PhD, lecturing, and hosting a history podcast at Queen’s University Belfast, Ryan joined road.cc in December 2021 and since then has kept the site’s readers and listeners informed and enthralled (well at least occasionally) on news, the live blog, and the road.cc Podcast. After boarding a wrong bus at the world championships and ruining a good pair of jeans at the cyclocross, he now serves as road.cc’s senior news writer. Before his foray into cycling journalism, he wallowed in the equally pitiless world of academia, where he wrote a book about Victorian politics and droned on about cycling and bikes to classes of bored students (while taking every chance he could get to talk about cycling in print or on the radio). He can be found riding his bike very slowly around the narrow, scenic country lanes of Co. Down.

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11 comments

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Jippily | 4 months ago
6 likes

Maybe after this the industry will start to realise bikes really shouldn't be costing more than motorbikes.

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MountainsofSussex replied to Jippily | 4 months ago
0 likes

My opinion on this is that (nice) bikes and motorbikes cost about the same is because that's a price the public are prepared to pay for a discretionary/fun/toy purchase, regardless of whether it has a motor or not. And a nice bike is available in lots of sizes and is basically the same as used by pros, whereas a bicycle-priced motorbike is single size and a looong way firm anything used in racing, whether that's on or off road

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Veganpotter replied to Jippily | 4 months ago
1 like

The highest end racing bikes don't come close in price to the most expensive racing motorcycles. That said, the high end watch industry is doing fine with selling watches that cost more than most people's homes. Good thing there are still cheap watches and bikes huh?

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Paul J replied to Veganpotter | 4 months ago
0 likes

For the price of the highest end WT racing bikes (£15k to £20k?) you can easily buy a junior class bike that will be fairly fast around a track, and lap within 12s of full-on race British SuperBike (in the hands of a top rider). Hell, you can buy 2 or 3 of them!

For the price of 2 WT race bikes (£30kish) you can buy a SuperStock race bike, that will lap within about 2s to 3s of the 100k to 200k top British SuperBike. If you know what you're doing, and look around and buy used kit, you can probably put a bike together for around the cost of a top WT bicycle that will lap pretty close to a top SuperStock bike.

You can buy a new, near race ready Supersport bike (£15k to £20k), which will lap about 6s to 9s off the top British Superbikes.

UCI world tour <-> SuperStock or SuperSport is probably the fairer comparison, as both have to be homologated by sale to the public.

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Simon E replied to Jippily | 4 months ago
3 likes

Jippily wrote:

Maybe after this the industry will start to realise bikes really shouldn't be costing more than motorbikes.

This is a pointless and utterly useless comparison.

The bicycle industry is not in this state because an S-works SL8 with Dura-Ace (or a similar model from other brands) RRP is £12,000*. It's not the expensive models clogging up warehouses and retailers' shop floors, they sell well enough, it's the much lower priced models that normally sell in vastly larger quantities that are causing the problem, due to the exaggerated boom-and-bust nature of the post-covid bicycle market.

Halfords do not sell expensive bikes - almost all are under £1,000, most are considerably cheaper than that - but they too have been struggling, with "bike sales dropping to 30 per cent below pre-Covid levels" as reported here on road.cc last Thursday.

Very pricey bicycles exist just as there are stupidly expensive cars, watches, clothes, cameras and so on. You only have to look at how Leica cameras have been marketed in the last, say, 30 years to realise that there are people that will pay silly money for something bearing their logo.

* almost all sizes of the S-Works SL8s are sold out on Specialized UK's Tarmac page. The Red Bull BORA - hansgrohe Edition model is £14,500. The 500 that were made have all been snapped up. Yep, that's a struggling market, for you.

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C3a | 4 months ago
4 likes

What overstock issue?  The bikes and equipment that I want aren't in stock and haven't been for some time.

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Jimnm replied to C3a | 4 months ago
8 likes

Overstocked = Overpriced IMO.

flooding the market with very expensive bikes and parts. Greedy corporations. 

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Smoggysteve replied to Jimnm | 4 months ago
1 like

Thousand of bikes they can't sell. Then nearly all the top brands release new models. Treks new Madone is way ahead of their expected replacement time. What was wrong with the Gen 7 (I can't use the word 'old' since it really isn't) Madone that it had to be replaced so soon? It's less than 2 years old!
 

Specialized did the same with the SL8 Tarmac. They are, quite frankly, taking the piss.

So what you expect to do with lots of Gen 7 Madones' when there is a brand new replacement on the market? Same with the outgoing Emonda which is a brilliant bike but ultimately now discontinued. There will be countless fully built bikes in shops and warehouses ready to ship with no buyer when they want obscene money for them. 

What if you have a new bike in order, only to see it replaced before you even receive it,  or shortly afterwards? You're going to feel cheated. 
 

Another thing that I think it totally absurd is this and I apologise to Sigma as they are not the only ones doing this: 

https://www.sigmasports.com/item/Trek/Emonda-SL-Disc-Frameset-2021/Q9L9

https://www.sigmasports.com/item/Trek/Emonda-SL-5-Road-Bike-2024/11FXB

Here we have a complete bike costing less than a 3 year old identical frameset (less paint colour)  by £600! 
 

That is totally bonkers. Sure there is limited sizes available but that's not always been the case. Its the fact this practice exists is the absurdity of it all only for the bike industry to say they are in trouble due to overstock issues. Why isn't that frame a good grand cheaper? Let someone buy a bargain frame and build it up themselves. 

 

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Veganpotter replied to Smoggysteve | 4 months ago
0 likes

The Emonda was due for an update anyway. This bike being lighter let them get rid of a bike and replace another bike

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Smoggysteve replied to Veganpotter | 4 months ago
0 likes

It's actually NOT lighter than the current Emonda. It's a smidge faster if you can comprehend 77 seconds in an hour in real world conditions, It's lighter than the current Madone. 
 

"It’s 77 seconds per hour faster than Émonda and as fast as the previous Madone (as a complete system comprising bike, rider, bottles and cages) at 200 watts"

Now I'm no maths genius. But if this is true. That meant the current Madone was ALSO only 77 sec per hour faster than the Emonda if it's AS FAST as the current Madone. 
 

Also since the Emonda IS a lighter bike than the current Madone , surely that makes it a better all round bike before the introduction of a slightly faster but much heavier hybrid of the two. 
 
For this, go watch https://youtu.be/nbJvSJNZ67o?si=xETpUCfWILBcfpmY

There a complete bike with Sram Red weighed 7.34kg on their scales. 
 

just for context, my current Emonda SLR 7 with di2 Ultegra and Hunt Aero 50 rims. Weighs less. In fact my bike weighs 7.5 with pedals, bottle cages, garmin and rear light attached. 
 

So where is the real improvement in weight or speed? 
 

or is this just Trek cutting on production by replacing 2 bikes with 1 and making it sound better than it is. Cos they need to still sell bikes after all. 

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Veganpotter replied to Jimnm | 4 months ago
0 likes

Those prices finally got shop employees making better pay. Bikes have realistically had very little inflation until the pandemic. The real fall came from that inflation happening so quickly.

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