Bike sales continue to rise, but manufacturers are struggling to meet demand. Last year, bike shop owner Bob Gatto hesitated to place a large order because of the lack of supply. But after hearing encouraging stories from other bike shop owners in other states, he decided to place a big order. The store is now at 60 bikes, which is about one-third of its normal inventory.
Despite the shortage of supply, the 0-50cc segment experienced a seventy-nine percent growth. The 651-1000cc segment, meanwhile, saw a 45.5% rise, with nearly three times as many sales. The electric bike segment has also performed well, though the lower-powered bikes continue to dominate the market.
The bike industry is experiencing a transition period. After the pandemic, demand surpassed supply, causing the supply chain to break. Bicycle retailers have had trouble keeping up with demand, and this is causing a slowdown in bike sales. As a result, a few companies are looking to merge or expand their existing operations.
The bicycle industry depends on discretionary spending to survive. Bike sales in April 2021 are expected to decline by about 22 percent from April 2020, although the recovery in the U.S. economy and widespread vaccinations may have some effect. However, other factors point to continued high bike sales in the near future. The bike industry is largely dependent on discretionary spending, and the green movement may be an important factor in this.
Bike sales in Europe are expected to reach ten million units per year by 2020, up 47 percent from the year before. Meanwhile, sales in China are projected to reach 40 million bikes in the first nine months of 2020, which is more than four times the EU’s annual bike production. Major bike manufacturers have reported record sales, and some popular brands such as e-bikes are seeing record sales.
The recovery in the bike industry is fueled by new manufacturer incentives, including up to PS2400 off the cost of a new KTM. However, there are still some warnings and dealers should exercise caution before purchasing a bike. While the latest figures are for May 2021, the year-to-date figures for new bike sales are still significantly behind last year.
The bicycle industry faces a number of challenges, namely the supply chain and supply of products. However, the market is expected to grow by 40% by 2025. And according to Mintel research, this increase will increase by PS400 million. With that growth, the industry should continue to benefit from this trend, adding up to a billion dollars annually.
Bike sales in the spring and summer are booming. The summer months are a great time to get out and enjoy the fresh air while exercising. Bike sales at local bicycle shops can help you get a bike that suits your budget and your needs. But whether you are purchasing a new bike or used one, make sure that it is tuned and is in good condition.