Bicycle Sales in Europe Drop Sharply Due to Oversupply
Bicycle sales in Europe saw a sharp decline in 2023, according to a report from the European Bicycle Manufacturers Association (CONEBI), despite carbon emission reduction targets.
Around 11.7 million traditional bicycles were sold across the continent in 2023, a significant drop compared to 14.7 million units in 2022.
Sharp Decline Post-COVID-19
Bicycle Sales in Europe Drop Sharply Due to Oversupply
In its annual report, CONEBI explained that the market is currently undergoing an adjustment after the surge in bicycle sales during and immediately after the COVID-19 pandemic.
World-leading bicycle manufacturer Giant confirmed a 20% drop in sales in the first quarter of 2024. Giant’s financial report for 2023 also showed a 16.4% decrease in sales compared to 2022. The Taiwanese company reported that while sales in China continued to grow significantly, demand in the U.S. and Europe remained low. Giant attributed the decline in sales to the oversupply of goods resulting from the post-COVID-19 period.
Meanwhile, Japanese bike components company Shimano also experienced a sharp decline in sales. Shimano’s 2023 financial report revealed a 24.6% drop in revenue compared to the previous year, and net profit fell by 52.3%.
In addition to Giant, several other companies in the industry also blamed the oversupply issue for their declining sales. Many businesses noted an unprecedented surge in demand for goods during the global lockdowns, which gradually decreased as COVID-19 restrictions were lifted.
In February this year, the Bicycle Association of the UK reported that the country’s bicycle market continued to decline. The total value of the bicycle market in the UK fell by 18% in 2022 and dropped another 6% in 2023. This was attributed to reduced consumer demand after the “boom” during the pandemic and a further decline due to the ongoing cost-of-living crisis.
Bicycle sales in the UK in 2023 fell by 33% compared to 2019 levels. Traditional bicycle sales in the UK in 2023 could be the lowest since the early 21st century.
Electric Bikes on the Rise
The bicycle industry in Europe is awaiting a “boost” from policies encouraging cycling in various countries. In an optimistic signal, CONEBI believes that the challenges faced by the bicycle market in 2023 have created a “reset” moment for the industry.
CONEBI forecasts that the bicycle market in Europe may stabilize in 2024 and continue its overall growth trend through 2030. The report states that the issue of oversupply in the bicycle industry “could be resolved by 2025.” Additionally, the report expects effective policies promoting bicycle use across Europe to drive demand for these emission-free vehicles, thereby boosting sales.
In April of this year, the European Union (EU) announced the European Cycling Declaration, where governments of EU member states committed to adding more bike lanes, ensuring proper parking facilities, improving safety for cyclists, and encouraging plans to transition from cars to smoke-free two-wheelers. The EU acknowledged that policies promoting cycling are crucial, as cycling is one of the “most sustainable, healthy, and effective” ways to reduce greenhouse gas emissions.
In this context, CONEBI’s report emphasizes that EU policies promoting cycling will be the necessary driving force for the growth of the smokeless vehicle industry.
Electric bicycles are also expected to be a rapidly growing market. In 2023, electric bicycle sales in Europe totaled 5.1 million units, accounting for over 30% of the bicycle market share in Europe. Although this number is slightly lower than the 5.5 million units sold in 2022, it signals optimism about future growth potential.
Electric bikes have the highest market share (56%) in the Netherlands. In Germany, Austria, and Belgium, electric bikes also represent over 50% of total sales. France has a mid-range share (30%), while the United Kingdom has the lowest share (only 9%).
Bicycle manufacturer Giant believes that electric bikes will be a key growth market to reverse the current sales decline. According to Giant’s report, electric bikes align with the current green energy trend. With diverse and improved products, the company aims to serve a broader range of consumer lifestyles, thereby expanding the global cycling user base.
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