The German bicycle industry, already grappling with a severe crisis, faces a deepening downturn, according to industry leaders. Initial hopes for a market recovery in 2025 have proven unfounded, with sales figures now forecast to decline further, signaling a protracted period of instability for numerous manufacturers.
Burkhard Stork, Managing Director of the German Bicycle Industry Association (ZIV), told the Handelsblatt that the anticipated turnaround has failed to materialize. He cautioned that the liquidity situation remains precarious for several companies, raising concerns about potential bankruptcies within the sector.
The challenges are multifaceted and exacerbated by a complex interplay of economic anxieties, bureaucratic hurdles and a discernible lack of political support. Thomas Heckrath-Rose, Managing Director of Rose Bikes, highlighted the stifling effect of these factors, alongside the ongoing pressure from high inventory levels. The market experienced a fourth consecutive decline in 2023, with sales dropping 2.5% to 3.85 million units.
Industry analysts now acknowledge a critical misjudgment regarding the post-pandemic boom. The initial surge in demand, fueled by factors like pandemic lockdowns and heightened interest in outdoor recreation, was mistakenly interpreted as a shift towards a permanently elevated baseline. The sudden jump to five million bikes sold, compared to the average of four million previously, fostered an optimistic outlook that ultimately proved unsustainable.
“It was perhaps somewhat naive to believe that the sharply increased demand at the beginning of the pandemic wasn’t a case of advanced purchases, but a jump to a new level” Stork stated bluntly. He further questioned whether the German market can realistically sustain sales beyond the four million unit mark annually, suggesting a reassessment of growth expectations is now necessary within the industry. This underscores a broader debate about the long-term sustainability of government policies designed to incentivize cycling and the potential need for more targeted interventions to revitalize the sector.
