What’s Next? These Five Topics Will Shape the Bike Industry in 2025 - Show Daily

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What’s Next? These Five Topics Will Shape the Bike Industry in 2025

Declining sales numbers, persistently high inventory levels, and only faint signs of recovery—2024 proved to be a challenging year for the international bike industry. But what does that mean for 2025? Here’s a look at what lies ahead.

2025 could be another challenging year for the global bicycle industry.
2025 could be another challenging year for the global bicycle industry.

1. Is Inventory Reduction Coming to an End?

After the overproduction and drop in demand during 2023/24, brands are now focusing on leaner supply chains and improved inventory management. The good news: Already by the end of 2024, industry-wide destocking efforts have shown signs of recovery, with stock levels of well-known players such as Giant, Merida and Shimano gradually returning to more manageable thresholds. Another notable example is Accell Group: According to a report in the Dutch financial newspaper FD, the manufacturer had seen its inventory increase by 70% in 2022. Two years later, they report that bike inventory levels are nearly back to normal. Nevertheless, the issue of reducing excess stock will continue to occupy many companies and retailers in 2025.

Accell Group has managed to reduce its debt by €600 million through a binding recapitalization support agreement with a majority of its shareholders (Photo: Accell Group)
Accell Group has managed to reduce its debt by €600 million through a binding recapitalization support agreement with a majority of its shareholders (Photo: Accell Group)

2. The Global Economy and Its Impact on the Bicycle Industry

Geopolitical tensions, volatile raw material and logistics costs, inflation concerns, and subdued consumer spending continue to shape the global economic landscape. With its traditionally complex global supply chains, the bicycle industry remains particularly vulnerable to these fluctuations. Recent analysis from the OECD’s Consumer Confidence Index (CCI) suggests some signs of recovery in consumer sentiment, but levels remain far from the stability seen in pre-pandemic years source. Political changes in the United States and Europe add to the uncertainty, which may significantly influence mobility policies and subsidies. For example, the upcoming governmental change in the U.S. could lead to shifts in federal funding for sustainable transport initiatives. At the same time, the European Green Deal reforms may either bolster or complicate incentives for cycling-related investments.

The Consumer confidence index (CCI) as of December 2024 (Source: OECD)
The Consumer confidence index (CCI) as of December 2024 (Source: OECD)

3. The Bicycle Industry and its Sustainability Ambitions

This brings us to the topic of sustainability. Sustainability remains at the forefront of industry priorities, with a growing focus on CO₂-neutral production methods and the use of recyclable materials. Examples of progress include the rising adoption of recycled aluminum and thermoplastic composites, which reduce environmental impact while maintaining performance standards. Leading manufacturers have also started to publish detailed sustainability reports, showcasing their efforts to minimize carbon footprints and embrace circular economy principles. Despite these positive developments, a key challenge remains: the lack of a unified strategy within the bicycle industry. While initiatives such as the Bicycling Alliance for Sustainability represent a step forward, many companies continue to operate as lone actors or engage in localized efforts rather than aligning on a global scale. For the industry to truly lead in sustainability, collaboration will be essential. However, whether this level of cooperation is achievable in 2025 remains an open question.

During a press conference at Eurobike, BAS was introduced to European media representatives. (Photo: Werner Müller-Schell)
During a press conference at Eurobike, BAS was introduced to European media representatives. (Photo: Werner Müller-Schell)

4. A Crucial Year for Industry Gatherings

The pandemic underscored the importance of trade shows and industry events as vital platforms for connecting decision-makers and driving innovation. However, recent economic challenges have forced many companies to scale back their presence at such events or withdraw entirely, creating a shifting landscape for trade show organizers. In 2025, the stakes are high for both established and emerging formats. Events like Asiabike Jakarta are striving to solidify their positions in the global calendar. At the same time, new formats such as Cyclingworld New York and the Stockholm Bicycle Show have to make a new attempt to gain a foothold in the industry in the first place.

In total, 360 exhibitors attended Taichung Bike Week 2024. (Photo: Werner Müller-Schell)
In total, 360 exhibitors attended Taichung Bike Week 2024. (Photo: Werner Müller-Schell)

5. Shifting Geographies in Bicycle Manufacturing

China and Taiwan have been the dominant players in bicycle manufacturing for decades, offering unmatched scale, expertise, and infrastructure. However, rising labor costs, geopolitical tensions, and the need for diversified supply chains are prompting the industry to explore new production hotspots in 2025. Countries like Vietnam, Cambodia, India, and Bangladesh increasingly attract manufacturers with lower labor costs and favorable government incentives for foreign investment. Meanwhile, Turkey is emerging as a strategic location due to its proximity to Europe, enabling shorter lead times and reduced shipping costs. In Europe, Portugal, Hungary and the Baltic States are gaining momentum as manufacturing destinations. Companies like Accell Group and Pon Bike invest in these regions to streamline logistics and bring production closer to their core markets. As the industry continues to adapt to global economic and geopolitical pressures, the emergence of these new hotspots marks a pivotal shift in the geography of bicycle manufacturing. In 2025, this trend will become even more visible.

An aerial shot of A-Forge's Vietnam factory. (Photo: A-Forge)
An aerial shot of A-Forge’s Vietnam factory. (Photo: A-Forge)

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