Industry Insights: Current Situation and Future Trends of the Bicycle Marke

Since the middle of 2022, the bicycle industry has seemingly been at the center of a storm, facing numerous severe challenges. Today, we will delve into the perspectives of Taiwanese suppliers on the industry situation and explore whether there are any signs of a turnaround.

In recent years, consumer confidence in core markets has taken a hit, and demand has dropped sharply. The continuous increase in the cost of living, the ongoing political conflicts, and the adverse weather conditions in most of Europe throughout 2024 have made it difficult to quickly sell off the backlog of bicycle inventory. Ken Li, a spokesperson for the Giant Group, confirmed, "Inventory in the United States and Europe remains the main challenge. However, the situation is improving." In addition to actively reducing inventory, the Giant Group is also vigorously optimizing its sales channels, focusing on developing more innovative and sustainable products and services, and leveraging digital marketing to enhance customer engagement.

Fritz Jou, President of FJ Manufacturing, an assembly expert, also stated, "We saw some improvements in 2024, but core challenges such as inventory adjustment, cautious demand, and supply chain disruptions still remain. Nevertheless, the market is showing a trend towards stability. Compared with the fluctuations in 2023, we are seeing a more balanced market."

The instability of trade policies has added more variables to the industry. With the prospect of Trump's return to the White House, trade protectionism may make a comeback, and the risk of an escalation in trade conflicts is increasing. Moreover, the EU's extension of anti - dumping tariffs on Chinese - made electric bicycles may have a significant impact on the bicycle industry's supply chain. However, Fritz Jou believes, "It is not feasible to relocate manufacturing from China in the short term, as China remains the global hub for bicycle production. It should be noted that 85% of the electric and traditional bicycles imported by the United States are produced in China."

Weak demand and cost pressures have gradually depleted the capital reserves of many enterprises. Some companies expanded their production capacity relying on zero - interest bank loans in the early days of the pandemic. As the federal bank raised interest rates to curb inflation, financial planning became imbalanced, leading to the bankruptcy of the German electric bicycle manufacturer Advanced.

However, Adrian Bleiler, Senior Manager of Sales and Business Development at KMC Chain, pointed out that there are also some positive signs in the market. Influenced by consumers' preference for repairing rather than buying new vehicles, the aftermarket sales of repair parts such as chains, freewheels, and tires have shown signs of recovery. Additionally, enterprises' ordering strategies have become more conservative, and with the rational use of sales discounts, the overall inventory level of bicycles has decreased. Although the reduction in inventory is generally good news, some bicycle inventory still remains in the market. This inventory is difficult to clear quickly due to issues such as inappropriate sizes, unpopular colors, or outdated technology.

In the overall downturn of the industry, some market segments have shown signs of a turnaround. Brenda Yu, Public Relations Manager of Formula Hub, said, "The market has started to rebound, especially for high - end products. Both sales volume and price are on the rise. With numerous ongoing projects and new customers, we expect sales to increase starting from the third quarter of 2025. There is a high demand for high - end road disc brake wheelsets and gravel disc brake wheelsets, and the demand for electric bicycle wheelsets is also significant in Europe and China."

However, Ann Chen, CEO of Velo Enterprise, believes that the pace of recovery still needs to be accelerated to truly take effect. Order growth was slow in 2024, and market uncertainty remains. There is an expectation that the market will return to normal as soon as possible.

From a data perspective, the decline in exports from Taiwan, China is higher than the decline in bicycle sales in various markets. Although the inventory level is decreasing, the speed and profit margin are far below industry expectations. North America and Europe, as core markets for mid - to - high - end bicycles, have faced numerous challenges since the middle of 2022. In contrast, the Chinese market shows a different vitality.

Ken Li of the Giant Group said that the Chinese market has witnessed significant growth over the past three years, especially in the segments of high - end bicycles and road bicycles. He is optimistic about the upgrading and transformation of the Chinese market. However, competition within China is also very intense. Domestic manufacturers are constantly seeking to upgrade and build their own brands. XDS Bicycle, for example, has become a joint sponsor and bicycle supplier for a world - touring cycling team through its X - Lab brand, which is a good illustration.

Nevertheless, whether the demand for high - end road bicycles in China can be sustained remains to be seen. Adrian Bleiler of KMC Chain believes that the business opportunities in the field of bicycles and components, especially road bicycles, in China have passed their peak, and the overall demand is on a downward trend.

In addition to facing issues such as declining orders, cost balance, and employee turnover, the bicycle industry also faces the serious prospect that the bankruptcy of highly specialized companies may affect the entire supply chain, making it difficult for the industry to increase production to meet future demand. In the coming months, large enterprises will strive to stabilize their supply chains, and there may be an increase in reports of acquisitions and mergers.

Furthermore, the bicycle industry conducts business relying on the US dollar. The depreciation of the US dollar against the euro has further complicated the situation, exacerbating the challenges brought about by fundamental factors that the industry cannot control. Jennifer Chen, Sales Director of Wellgo, frankly stated that global political issues are the most challenging factors at present.

So, will the situation reverse? Industry managers are cautiously optimistic. As Fritz Jou's assessment states, "Given the global economic uncertainty and potential tariff changes, especially in the United States, predicting the situation in 2025 is quite challenging. However, if the current stable trend continues and inventory levels return to normal, we expect a moderate recovery. This largely depends on consumer confidence, policy developments, and supply chain dynamics." Adrian Bleiler also does not expect an immediate recovery. "The first half of 2025 will be challenging for most markets, as the spring sales season has not started yet, and we are still unsure about the demand situation. Continuous inventory reduction and targeted promotional activities will lead to healthy sales growth in the second half of the year. Using the 2019 level as a benchmark, some markets will experience a recovery, while others will recover in 2026."

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As an operator of an independent electric bicycle website, we need to continuously monitor industry trends, seize opportunities in market segments (such as high - end products and the aftermarket for parts), and adjust our strategies based on regional market differences. For more industry analysis or supply chain resources, welcome to visit shengmilo.store and jointly explore solutions in the field of electric bicycles.