Is the Bike Industry in Trouble—Or Is It Making Another Comeback?
Between the COVID-19 bike boom and the slump in sales that followed, the cycling industry has been on a wild ride for the last four years. But industry experts say that by 2024, the business of bikes may finally stabilize.
Admittedly, it’s hard to see an end in sight now, with brands like Van Moof declaring bankruptcy, All City Cycles announcing their closure, Bell announcing layoffs, and bike behemoths like SRAM and Shimano still taking hits to profits quarter after quarter.
According to a recent Forbes article, major players in the cycling space in Taiwan are going so far as to call this moment in time a “super cold winter” due to falling demand but huge overstock.
It was almost inevitable that after the bike boom caused by COVID-19, the industry would have to slow down. In fact, even as companies ramped up production to meet the impossible demand due to the shutdowns and shipping issues in 2020, most knew they were in a no-win situation. Don’t make enough product, and miss out on record profits. Make too much and still have overstock when the wave of consumer demands crests, and you’re going to hit a rough patch. But the danger of under-producing, for most, far outweighed the cost of ending up with too much product, especially as suppliers prioritized the bigger orders.
“Considering the global economy situation, as well as the current market is undergoing inventories adjustments, this year would be a year to adjust production, sales, and supply back to normal,” a Giant financial press release stated.
While bike brands still see bikes as the future of transportation around the world, especially in the e-bike category, it’s impossible to deny that times are tough right now. It’s a tricky line to walk between being optimistic that the industry will rebound and continue to expand—while staying pessimistic enough to cut losses and keep from overproducing.
Between a renewed interest in racing with huge viewership numbers for events like the Tour de France Femmes and a better understanding of the health and environmental benefits that cycling has, experts do believe that this downturn is the ‘trough’ of the wave, says Forbes. And that means there’s nowhere to go but up.
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