From Newsgroup: uk.rec.cycling

Bike industry told to rCLsurvive until 2025rCY as cycling market report says overstock issues rCLmight be resolvedrCY next year

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

by RYAN MALLON
SAT, JUN 29, 2024 20:16

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 (link is external) rCo an umbrella
organisation which represents national bike industry associations across
Europe rCo in time for the Eurobike show in Frankfurt next week, noted that
the difficulties experienced by the cycling market during 2023 provided a rCLresetrCY moment for the industry.

The European Bicycle Industry and Market Profile (BIMP) report also claimed that the issue of overstock rCLmight be resolved in 2025rCY and that rCLeffective
policies at the European levelrCY 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.

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 re419.3 billion, almost nine per cent down on 2022rCOs figures.

While production saw a sharp decline in response to 2023rCOs 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 re41.9 billion, compared to re42.1 billion in 2022, reflecting according to the report rCLcontinued confidence and dedication to growthrCY.

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.

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

CONEBIrCOs 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 rCLsignificantly worse than expectedrCY 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 rCLhigh-profile failurerCY of Wiggle Chain Reaction as evidence of the rCLchallengingrCY market situation and noted that rCLsignificant
pressurerCY 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, rCLfar behindrCY the forecast, with the now-familiar rCLworse than anticipated headwindsrCY rCo namely the cost-of-living
crisis, inflation, low consumer confidence for big discretionary purchases,
and poor spring weather rCo all blamed for contributing to the rCLvery challenging market conditionsrCY facing the bike industry at the moment.

<https://road.cc/content/news/cycling-overstock-issues-might-be-resolved-2025-309147>
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