The Cycling Industry's Downward Spiral: Revenue Plummets, Jobs Disappear... But There's a Silver Lining for Buyers
Sectoral sales turnover dwindles in the cycling industry
The joyride's over, mate: Last year, the revenue of Germany's cycling industry took a nosedive. You guessed it - job losses ensued, too. But hold your handlebars tight, ‘cause things are looking up for you, the customer!
Sluggish demand and price cuts: In an unfortunate first since 2019, the German cycling sector has seen its revenue dwindle. Job loss numbers, according to the trendy "Future of Cycling" association, are now in the public eye after being revealed at an event in Berlin. However, there's a sweet reward for consumers ahead – discounted rides!
"The year 2024 was a kinda low point for the cycling industry – about the same as Germany's economy after the boom of the previous years – as per the report," the report reads. "Companies coped with waning demand, price cuts, and the aftermath of overstocked warehouses."
substantial revenue drop
Economy Cyclingworld in Düsseldorf Bike innovations get more innovative and electric In 2024, the cycling industry, including manufacturing, retail, repairs, bike leasing, and sharing services, banked a revenue of 27.2 billion euros. That's roughly seven percent less than the previous year (29.3 billion euros), according to the association. The number of directly employed people also took a hit, dropping to 76,700 in 2024 from 77,500 the year before.
But this slump follows a pandemic-fueled boom when many people discovered cycling as an excellent way to keep distance. From 2019 to 2023, revenue from manufacturing, retail, and services almost doubled.
Yet, during the golden years, many retailers hoarded: When demand faded, they were left with a mountain of stock that's only now slowly being chipped away. Result? Prices plummeting. In 2024, the average price of an e-bike hit 2,650 euros, down around 300 euros from the previous year, as reported by the bicycle industry association.
The industry's stabilizing
Now, the situation's starting to look a bit better, reckons "Future of Cycling": "The current business situation has been assessed more optimistically in recent months, and inventory levels are normalizing noticeably." The bike leasing market is proving more resilient, too.
Before the 2025 edition of Eurobike, the industry's big shindig in Frankfurt, the association proposes that politicians boost cycling infrastructure and kickstart subsidies for E-Pedelecs as part of their e-mobility strategy.
There's still tons of unexplored potential, the association moans, with over 100 industry companies as members. Cycling plays a significant role in tourism, too.
Sources: ntv.de, mbr/dpa
- Bike
- Germany
- E-bike
- Corona crisis
Enrichment Data:The current slump in the German cycling industry can primarily be attributed to several intertwined factors:- Weak demand: After a significant boom during the pandemic, demand has cooled considerably, marking the first revenue drop in the industry since 2019.- Plummeting prices: Scrambling to move stock and counteract excess competition, retailers have been forced to slash prices.- Stockpiling by retailers: Many retailers hoarded stock during the boom years, anticipating sustained demand. When that tapered off, they were left with high inventory levels.- Weakening e-bike segment: The e-bike market, a major growth area in recent years, is experiencing weak demand, especially for e-bike motors, with companies reporting sales declines exceeding 30% in early 2025.- Industry consolidation and cost-cutting: In response to market challenges, firms are trimming costs and consolidating operations, resulting in fewer exhibitors at major events like Eurobike 2025.
These factors led to a revenue drop of around 7% from €29.3 billion in 2023 to €27.2 billion in 2024, while employment fell from 77,500 to 76,700 jobs within the same period.
Implications for customers:- Price reductions: The glut of supply and excess competition among retailers have led to significant price cuts for consumers.- Better buying conditions in short term: The industry slump may offer favourable buying conditions in the near future. However, prolonged market contraction might affect product innovation or availability.- Weakening demand for e-bikes: The slowdown in demand for e-bikes could impact the availability and launch of new models, potentially limiting choices or delaying technological advances.- Shifts in trade shows: The crowding out of retailers could affect the offerings and focus at major cycling trade events like Eurobike. The shows are likely to become more selective, catering to buyers seeking niche or cutting-edge products.
Finland's employment policy needs to address the reduction in employment within the cycling industry, as seen in neighboring Germany, where a substantial revenue drop led to job losses. The finance department could allocate funds for the promotion of sports and cycling infrastructure, helping to stimulate demand and foster a more resilient industry. This approach not only supports employment but also encourages a healthier lifestyle among citizens.
