Is the Bicycle Market Really Collapsing?
The Reality and Direction the Bicycle Industry Faces After the Pandemic
Recently, when looking at news or industry reports, we frequently encounter expressions like "the bicycle market is collapsing" and "the bicycle industry is in crisis." Just a few years ago, bicycles rode on the image of health·hobby·eco-friendly transportation and enjoyed explosive popularity, so why has the atmosphere changed so dramatically?
To put it bluntly, the bicycle market is not disappearing but has entered a restructuring phase after the abnormal boom caused by the pandemic. In this article, we will calmly examine why the bicycle market appears to be 'declining' and how it is being reorganized going forward.
1. The 'False Boom' Created by Pandemic Windfall
During the 2020-2021 COVID-19 pandemic, the bicycle market experienced an unprecedented boom.
People who began to avoid public transportation and those tired of indoor activities chose bicycles as both a means of transportation and a tool for exercise·leisure.
During this period, bicycles went beyond mere hobby and were consumed as:
- A means of transportation with low infection risk
- Safe exercise near home
- An alternative to outdoor activities, causing demand to skyrocket.
The problem was that this demand was not sustainable growth but rather a temporary windfall that occurred only under specific circumstances.
As daily life returned to normal, people went back to public transportation, automobiles, and indoor exercise, and bicycle demand quickly cooled. From this point on, the market's 'bubble' began to burst in earnest.
2. Overproduction: The Inventory Bomb and Discount Wars
Based on the high sales volumes during the pandemic, many manufacturers and brands determined that "this trend will continue." As a result, they significantly increased production and aggressively expanded their distribution networks.
However, demand decreased much faster than expected,
and the result was inventory piling up in warehouses.
To clear inventory, companies launched massive discounts,
- From the consumer's perspective, the lower prices were welcome, but
- from the companies' perspective, a structure of revenue without profit solidified.
In this process, brand value was damaged, and small retailers and distributors faced significant pressure.
3. Closed Consumer Wallets: The Limits of Discretionary Goods
On top of this came global inflation and rising cost of living.
As food·housing·energy costs increased, consumers began cutting spending, and naturally, bicycle purchases fell to the back burner.
In particular, bicycles are not 'essential goods that can't be lived without' like cars or home appliances, but rather discretionary goods that are nice to have.
Therefore, they are more directly affected by economic downturns.
- Choosing budget models over high-end bicycles
- Buying used bicycles instead of new products
- Increasing numbers of consumers postponing purchases altogether
This trend rapidly weakened the overall market's vitality.
4. The Shift from Traditional Bicycles to E-bikes
The most important change in the bicycle market recently is the rapid growth of e-bikes.
Particularly centered in Europe:
- Government subsidies
- Bicycle-exclusive roads and infrastructure
- The convergence of an aging society and commuting needs has already established e-bikes as a 'mainstream transportation mode.'
Meanwhile, traditional bicycle-focused brands
- Electric motor system technology
- Battery·motor supply chains
- A/S and safety regulation compliance and other areas are falling behind and losing competitiveness.
In other words, the market is not disappearing but rather consumer interest and spending are shifting, and companies that haven't adapted are facing crisis.
5. Actual Crisis Cases That Have Emerged
These changes are already becoming reality.
- Restructuring and workforce reductions at global bicycle brands
- Bankruptcies or business withdrawals by some small brands
- Increasing closures of local bicycle shops
- Even major brands announcing consecutive losses
As these news reports continue, the perception that "the bicycle market is collapsing" has spread. However, this is more accurately seen as not a complete market extinction but an adjustment process after excessive growth.
Conclusion: The Bicycle Market is Not Over, It's Changing
The bicycle market is certainly difficult right now.
But this is not the end but rather the beginning of restructuring.
- Reckless expansion and bubbles are disappearing, and
- the market is being organized around actual use and means of transportation, while
- direction is shifting toward e-bikes, urban transportation, and sustainability.
Brands that survive going forward
will not simply be places that sell bicycles,
but rather places that provide mobility experiences and lifestyles.
The bicycle market is not collapsing,
but simply returning to 'reality' after passing through the abnormal times of the pandemic.
