After exploding during the Covid-19 pandemic, the new bicycle market fell sharply in 2023 and professionals in the sector still have huge stocks on their hands.
Sales drop of 14%
Sales in the sector amounted to 3.4 billion euros in France in 2023, including spare parts and maintenance, a decrease of 5.5% compared to the previous year, according to the 25th Cycle Observatory.
The Union Sport and Cycling (USC), a professional organization of companies in the sports sector, presented this report this Monday to the professionals gathered at the Vélo show in Paris, including folding bicycles, cargo bicycles and high-power electric models.
The number of bicycles sold fell 14% last year, to 2.2 million units, compared to almost 2.6 million in 2022 and almost 2.8 million in 2021.
In 2022, the drop in the total number of bicycles sold was offset in value by the increase in sales of electric bicycles, the prices of which are higher.
“The use of bicycles is continuously growing, but sales are decreasing (…) We are in a consolidation phase after the Covid boom,” described Jérôme Valentin, vice president of USC, during a press conference.
Bicycle “overdose”
The drop in sales in 2023 was concentrated above all in classic bicycles, but did not spare electric bicycles (-9% with 671,000 bicycles sold, or one in three bicycles), which had strongly driven the market until now. This is the first setback for electric cars in 13 years.
Two niches continue their rise: racing bicycles and especially “gravel” bicycles, fast bicycles adapted to the roads and very fashionable.
During the pandemic, a bubble had formed in the bicycle market. Demand had skyrocketed and both industry and logistics were having difficulty serving these new customers. Many bicycles were manufactured then, but demand suddenly fell at the end of 2022, in an economic context that had become difficult.
Thus, the entire bicycle supply chain found itself with a four-month “overstock” at the beginning of 2024.
“Today the entire planet suffers from an ‘overdose’ of bicycles. We must adapt to this surprise,” commented Denis Briscadieu, from the Cyclelab group (Culture Vélo stores).
The most striking figures: -30% among manufacturers Lapierre or Trek, -50% on certain high-end bicycles: both assemblers and distributors have been lowering prices for several months to regain their balance.
Decrease in children
“We try to recompose our offers, we necessarily make discounts, we harm the margins of all the players” in the sector, explained Denis Briscadieu. Furthermore, the spring weather was not favorable: according to him, “you don’t sell a bicycle to a Frenchman when it’s raining.”
In addition, the development of the used bicycle market also slowed down (where prices have also dropped sharply, according to several professionals), as well as rental offers launched by certain companies and communities, such as the Ile-de-France region. Reduce sales of new bicycles.
With these falls, France is average compared to its European neighbors. In terms of the number of bicycles sold, the market fell by 13% last year in Belgium and 15% in Germany. In Denmark it plummeted by 40%.
Imports into France plummeted 33% with the market decline (bikes are mainly made in Italy, Portugal and Romania, with many Asian parts).
At the same time, French bicycle production fell by 24%, to 645,000 units, focusing on sales of electric and high-end products. The effort will have to be maintained: the French industry has set a target of 1.4 million units in 2027.
The USC was also concerned about the sharp decline in children’s bicycles (-31% compared to 2019), with a probable shift towards the second-hand market. These figures are closely followed: “If Holland and Belgium are countries with a cycling culture, it is because children ride bicycles, whatever the weather,” stressed Jérôme Valentin.
Source: BFM TV
