The biking industry is still grappling with high inventory levels due to over-purchasing during the pandemic's unexpected demand surge. We can now conclude that this boom was not sustainable.
The biking industry is still grappling with high inventory
levels due to over-purchasing during the pandemic's unexpected
demand surge. We can now conclude that this boom was not
sustainable. The industry need to de-stock, rationalize more and
lay the foundation to win the market in 2025.
1 DEMAND
- After the initial market slowdown in the first months of the
Covid pandemic in 2020, the demand for bicycles
surged as people looked for outdoor activities.
- However, high sales levels in 20/22 have proven to be a result
of market acceleration rather than creation of a new
market, effectively shifting future sales in time, with
single-digit retention of new cyclists.
- As the travelling and tourism were back, in 23/24
industry bounced back to 18/19 sales levels with a
single-digit CAGR on top (in units), which led to overstocking.
Value growth is delivered by higher ASP (e-bikes).
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