The industry has had difficult years with overcapacity, price wars and bankruptcies. Canyon is growing again - now sustainability has to be proven.
Koblenz. At the end of the World Cycling Championships in Montreal there was another sense of achievement for Canyon. Mathieu van der Poel won the bronze medal in the men's road race on Sunday on a bike from the German manufacturer. At the start, Marlen Reusser had already won gold in the women's time trial on a canyon bike. In total, riders on bikes from Koblenz were able to secure six medals.
At a time when the bicycle industry is laboriously working its way out of a deep industry crisis, this provides tailwind. “Our motivation is to make the best bikes in the world here,” said Roman Arnold to the Handelsblatt in Koblenz. The Canyon founder returned to operational management of the company in September 2025 to manage the turnaround. A year later, the company has made progress.
After two years of declining sales, revenue in the first half of the year rose again by ten percent to 427 million euros, according to figures from owner GBL. The bottom line result was positive again for the first time in the second quarter. “We still have to prove that the turnaround is sustainable,” said Matthias Meier, who has led the company as CEO alongside Arnold since May. “We want to grow sustainably and healthily over the next few years and achieve satisfactory returns.”
There is a reason for the caution: the industry crisis is not yet over, even if inventories have cleared up in many places. Bicycle sales in Germany rose again by ten percent in the first half of the year. “The industry is stable and the market is moving again,” said Burkhard Stork, managing director of the industry association ZIV.
Last year, sales of bicycles in Germany fell for the fifth time in a row to just 3.8 million. At the peak of the boom in 2020 there were 5.0 million. Hopes for a quick return to such numbers are slim. “Perhaps it is simply not possible to sell more than four million bicycles a year in Germany at the moment,” said Stork.
The next bad news for the industry followed in August: the industry giant Accell, with brands such as Ghost, Winora, Babboe, Batavus, Raleigh and Haibike, had to file for bankruptcy. In recent years, competitors such as Simplon, Prophete and VanMoof have already gone bankrupt.
The industry crisis was primarily triggered by the Corona crisis. At the beginning of the pandemic there was a bicycle boom. Dealers and manufacturers experienced strong demand but were unable to meet it due to a lack of parts. When wheels and spare parts became available, demand stopped. The result was high inventory levels, discount campaigns and bankruptcies.
“Many in the industry were euphoric and saw huge growth, and then we as an industry as a whole slowed down too late,” said Meier. The thought was often prevalent: “I order 130 percent, then maybe I’ll get 100 percent.” Canyon also reacted too late.
There is also a special problem: Canyon sells its bikes directly to customers, primarily via the Internet and through its own shops. Because Canyon bypasses retail, the bikes can be offered at lower prices. In times of discount battles, the gap narrows, said Meier: “Suddenly, Canyon was no longer 30 percent cheaper because many in the industry had to significantly reduce their excess inventory.”
The result was losses and a decline in sales. According to GBL, Canyon's sales fell by six percent to 738 million euros last year, the bottom line was a loss. In an interview with the Handelsblatt, ex-boss de Ros had targeted sales of more than one billion euros for 2025.
Insiders in the industry also attributed the great optimism at Canyon to the ownership structure: With the financial investor behind it, the manufacturer drove up sales and marketing too quickly. The mail order competitor Rose, still family-owned, got through the crisis better in the meantime.
Meier rejects this reading: “With GBL, we have a very strong and sustainably oriented investor at our side.” Founder Arnold also says: “That had nothing to do with our investor’s goals – on the contrary, GBL wants to grow sustainably.”
Canyon is also one of the few manufacturers that is now at a significantly higher level than before the crisis. Even in the difficult times, investments continued, for example in the expansion of the test and inspection department as well as in a new e-bike center at the Koblenz location.
However, operational costs had to be reduced. The capacities had been expanded too optimistically; at times the company employed 1,700 people. That contributed to the losses, according to Arnold. “Costs could not be adjusted as quickly as sales fell.” There are now 1,300 employees. Development and assembly in Germany should remain central. “We are clearly sticking to our production site in Koblenz,” said Arnold.
With Arnold, the claim to define Canyon through its cycling expertise returned last year. “I didn’t want to whine and complain, I wanted to take responsibility myself again.” For him, this means above all putting a greater focus on cycling expertise and proximity to the product and customers.
“In an earlier phase, our management team consisted of technically excellent people from other industries,” said Arnold. “We have learned as a company during this time that specific knowledge in the core bicycle business is absolutely indispensable for us.” Meier put it this way: “Here, people who ride bikes make bikes – and it shows.”
Arnold calls his approach “Pure Cycling”. Every mountaineer knows the moment at the summit when there is nothing else left. "You don't need an eight-thousander on the bike. We at Canyon build our bikes for exactly this moment."
Canyon is trying to translate the marketing formula into concrete offers: with a festival, new customer offers and the expansion of the service network. The “Pure Cycling Festival” was recently held in Koblenz for the first time in years to deepen customer contact. Employees say that there is a feeling of unity again among the workforce, which was unsettled during times of job cuts. Everyone feels that it is more about technologies and innovation again.
Arnold sees the strategic positioning as an advantage over the competition. “Direct to consumer – i.e. direct sales to customers – doesn’t just mean online sales and price advantages,” said Arnold. “What’s crucial is that we can build a direct relationship with the customer.”
Whether Canyon's comeback is sustainable remains to be seen. In sport, success is fleeting. “Nobody cares about the races you won three years ago,” Arnold said.
