Cyclists in central Paris, February 23, 2023 (AFP/Archives/LUDOVIC MARIN)
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 in the sector totaled 3.4 billion euros in France in 2023, parts and maintenance included, a drop of 5.5% compared to the previous year, according to the 25th Cycle Observatory.
The Sport and Cycle Union (USC), a professional organization of companies in the sports sector, presented this report on Monday to the profession gathered at the Vélo in Paris show, between folding bikes, cargo bikes and high-powered electric models.
The number of bikes 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 growing continuously, but sales are declining (…) We are in a phase of consolidation after the Covid boom,” described Jérôme Valentin, vice-president of the USC, during of a press conference.
– Bicycle overdose –
The drop in sales in 2023 was concentrated in particular on classic bicycles, but it did not spare electric bicycles (-9% with 671,000 bicycles sold, or one in three bicycles), which had strongly pushed the market until now . This is the first setback for electric in 13 years.
Two niches continue their rise: racing bikes and especially “gravel”, fast bikes adapted to paths and very fashionable.
A bubble had formed in the bicycle market during the pandemic. Demand had exploded and both industry and logistics had difficulty meeting these new customers. Many bicycles were then manufactured, but demand suddenly fell at the end of 2022, in an economic context that had become difficult.
The entire bicycle supply chain thus found itself with a four-month “overstock” at the start of 2024.
“The whole planet is ‘overdose’ with bicycles today. We must adapt to this surprise,” commented Denis Briscadieu, from the Cyclelab group (Culture Vélo stores).
-30% at manufacturers Lapierre or Trek, -50% on certain high-end bikes: assemblers and distributors alike have been slashing prices for several months to regain their footing.
– Decline in children –
“We are trying to recompose our offers, we are necessarily making discounts, we are handicapping the margins of all the players” in the sector, explained Mr. Briscadieu. Furthermore, the spring weather was not favourable: according to him, “you don’t sell a bike to a French person when it’s raining”.
In addition, the development of the used bicycle market (where prices have also fallen sharply, according to several professionals) as well as rental offers, put in place by certain companies and communities, such as the Ile-de-France region, also slowed down sales of new cycles.
With these declines, France is average compared to its European neighbors. In terms of number of bikes sold, the market plunged by 13% last year in Belgium and 15% in Germany. It collapsed by 40% in Denmark.
Imports into France collapsed by 33% with the decline in the market (bikes are mainly manufactured in Italy, Portugal and Romania, with many Asian parts).
At the same time, French production of bicycles fell by 24%, to 645,000 units, focusing on sales of electric and high-end products. We will have to maintain the effort: French industry has set itself 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 to the second-hand market. These figures are closely monitored: “If Holland and Belgium are countries with a cycling culture, it is because children ride bikes, whatever the weather”, underlined Jérôme Valentin.
© 2024 AFP
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