Cycling Sector Sees a Downward Trend in 2024 Turnover
Bicycle industry sales decline by 2024 - Reduced earnings for the bike industry - Cycling Industry Experiences Slump in 2024: Decreased Revenue for Sector in Specific Year
No pedals slow for the bike industry, as a slump in turnover hits the sector hard, turning the pedals backwards for the first time since 2019. From €16.5 billion in 2019 to a peak of €29.3 billion in 2023, the industry's financial ride has been a rollercoaster. Yet it seems the thrill has dwindled, with turnover remaining stagnant in 2024, even when adjusted for inflation.
Last year was a harsh year for bike makers, with sales taking a hit. The general economic crisis played a significant role, as consumers lost appetite for new purchases, leading to slashed prices, warehouse inventories overflowing, and underwhelming sales. The bike market, as studied, consists of manufacturing, trade, and service sectors. Online providers and construction markets were not part of this analysis.
In light of these hardships, the bike industry's disposition has improved over the past few months, according to a T3 think tank survey. The industry now sees the current business situation as more positive and are witnessing a significant normalization of inventory levels. When polled in April, 70% of Future Bike member companies anticipated a positive business development.
Amidst these challenging times, the bike industry pleads for governmental aid akin to the support granted to other vehicle industries in Germany, such as in digitalization, supply chain security, and sustainable production. They argue that e-bikes should be a priority when reforming the income tax law and promoting e-mobility. Moreover, the association demands an investment of €30 per federal citizen annually to modernize and expand the bike infrastructure, making cycling a crucial part of an efficient and high-performance mobility system.
In essence, due to dwindling demand, price drops, overstocked inventories, and various financial challenges, the bike industry faced a substantial reduction in turnover in 2024. Despite these challenging conditions, the industry anticipates a revival as it appeals to the government for support in promoting and rejuvenating cycling-related industries.
- The cycling sector's financial difficulties in 2024 are not limited to turnover; the sector also faces challenges in creating employment, as EC countries' employment policies may need adjustments to support industries like cycling.
- A potential solution to accelerate the recovery of the bike industry and improve employment prospects is for EC countries to consider financial measures such as investments in digitalization, supply chain security, and sustainable production within the finance sector, which could subsequently aid the bike industry's expansion and growth.
