Bicycle market is booming, and related accessories are selling well

In recent years, the dockless bicycle sharing system based on mobile application development and global positioning system has gradually matured. Many domestic shared bicycle companies have invested heavily and expanded their businesses in Western countries such as Europe to seize market opportunities, which has driven the growth of the global bicycle market.

At the same time, affected by the COVID-19 pandemic, many countries around the world are vigorously promoting bicycles as one of the safest means of transportation, which helps people maintain social distance. Countries such as the United Kingdom and Italy have even introduced policies to provide subsidies for the purchase of new bicycles during the pandemic.

In addition, riding a bicycle can prevent diseases such as obesity and keep healthy. In big cities, the increasingly serious traffic congestion and parking space shortage have prompted people to consider riding short distances to save commuting time. Under the combined effect of these multiple factors, the market prospects for bicycles and related equipment in the next few years are promising.

The global bicycle market is huge, with the Asia-Pacific region being the main force

According to a research report by Grand View Research, the global bicycle market size was US$59.33 billion in 2021 and is expected to grow at a compound annual growth rate of 8.2% from 2022 to 2030.

Image source: Grand View Research

Asia Pacific became the leading regional market for the global bicycle industry in 2021, with a revenue share of more than 30.0%. Places such as China, Japan, and Singapore have improved the necessary infrastructure for cycling to encourage and support bicycle commuting. Some cities in Asia, such as Tokyo, are known for their lowest accident rates and are considered ideal cities for cycling.

Europe is also considered an ideal region for bicycle commuting, with cycling events such as the Tour de France and the Ronde van Vlaanderen often taking place there. European countries such as Belgium, Denmark, France and Italy are also actively rolling out infrastructure to support and encourage bicycle commuting.

In 2021 , the bicycle market in the United States is valued at $9.5 billion, while the bicycle market in China is expected to reach $16.5 billion by 2026, with a compound annual growth rate of 7.7%. The compound annual growth rates of Japan, Canada and Germany are expected to be 4%, 4.4% and 4.6% respectively by 2026.

Off-road biking is very popular in the United States, and the popularity of mountain bikes also reflects this trend. While older users are more inclined to use bicycles, especially electric bicycles, for local transportation, younger groups, especially millennials, prefer to use off-road biking for recreational purposes.

Bicycle distribution channels and user groups

From the perspective of bicycle sales channels, offline distribution channels accounted for the largest revenue share in 2021, exceeding 50.0%. Consumers choose to buy from offline channels/stores because they can test drive. Offline stores also provide customization options, and consumers can paint colors according to their personal preferences. In addition, offline purchases allow customers to get the product immediately.

The online distribution channel is expected to grow rapidly, with a compound annual growth rate of 10.9% between 2022 and 2030.

The growing penetration of smartphones and internet in places like Brazil, India and Mexico will further drive consumers to shop online. The growing penetration of the internet is encouraging vendors to sell their products in untapped markets through online platforms like Ali Express, Amazon and Flipkart.

In 2021 , the male segment accounted for the largest market share, exceeding 40.0%, and will continue to be the fastest growing segment. Historically, men use bicycles for commuting more than women. According to statistics from the UK Department of Transport, in 2019, British men made an average of 25 bicycle trips per year, while women made 10.

Image source: Grand View Research

However, bicycle manufacturers have been simplifying bicycle mechanisms and installing efficient gear systems and shock absorbers, which has attracted more women to participate in cycling activities. In the past few years, women have also actively participated in bicycle-related activities, and the proportion of women's cycling market is expected to grow steadily.

What aspects should bicycle sellers focus on in the future?

NPD said that if bicycle retailers and sellers want to continue to develop in 2022, they should focus on the following four aspects: inventory management; optimizing product prices; investing in key categories and obtaining additional profits through the sale of accessory products.

1. Do a good job of inventory management

According to NPD data, the U.S. electric bicycle business grew 39% year-on-year to $770 million in 2021. Mountain bikes and children's bikes both had sales of more than $1 billion in 2021, however, sales of these two bicycle categories showed a downward trend.

It is reported that the decline in sales of mountain bikes and children's bikes has little to do with demand, but with inventory. Some popular bikes were out of stock during the peak season. As the bicycle industry continues to develop, it is particularly important to do a good job of inventory management in popular bicycle categories.

2. Optimize product prices

In 2021 , affected by the supply chain crisis and rising raw material prices, the retail price of bicycles in the United States increased by an average of 17%. In particular, the average price of road bicycles with less inventory increased by a significant 29%.

However, as the global supply chain system gradually returns to normal and consumers become more interested in cycling activities, in the following business process, sellers should do a good job in product promotion and strive for the best price for consumers while protecting their own interests.

3. Focus on the hot-selling bicycle categories

NPD said that electric bikes, gravel road bikes, full suspension mountain bikes and bicycle roller trainers are the four categories that bicycle sellers can continue to invest and pay attention to next.

The electric bicycle category has been growing in recent years. New designs, better value for money, and a growing consumer base will drive continued growth in this category.

Gravel road bikes and suspension mountain bikes are designed to cater to different consumer needs. Bikes designed for racing or specific functions are falling out of favor as consumers want to buy bikes with more features so they can ride anywhere.

Bicycle trainers and rollers provide different opportunities for the bicycle industry. Affected by the epidemic, consumers' health awareness has increased, and some consumers who are reluctant to go to the gym have started to exercise at home, which provides an opportunity for the development of home fitness equipment including bicycle trainers and rollers.

4.Sell accessories

Finally, NPD data suggests that additional sales opportunities can be achieved by selling bicycle add-ons, including helmets, bike locks and lights, and other accessories.

As most countries relax epidemic control measures, more consumers are starting to use bicycles for commuting again. It can be foreseen that the future development prospects of the bicycle market are very broad.

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