The German bicycle industry is still in crisis

The German bicycle trade is still in crisis. Last year, both sales and employment in the medium-sized industry fell. This is shown by data from the Future Bicycle Association.

According to this, employment fell by around three percent to around 74,300 people in 2025 and sales fell by around seven percent to 25.2 billion euros. While manufacturing revenue only fell slightly, retail sales fell by ten percent. “Although demand remained pleasingly stable, companies continued to suffer from price declines and the after-effects of overcrowded warehouses,” writes Zukunft Fahrrad.

The bicycle industry is suffering from the consequences of overproduction after a boom in the corona pandemic. According to the industry association ZIV, 3.8 million bikes were sold in Germany in 2025 after 3.9 million in the previous year. High inventories forced retailers to offer discounts, especially on e-bikes, which account for over 80 percent of sales.

The tense situation that has existed since 2024 has not been overcome, says Zukunft Fahrrad. “Inflation and the economic downturn are not helping in the current situation,” said managing director Wasilis von Rauch to the German Press Agency. While sports bikes such as racing bikes and gravel bikes sold well, sales of mountain bikes were weakening and price pressure continued for classic city e-bikes.

“The big hit is missing”

Sales in 2025 will be well above the level before the corona pandemic in 2019, at 16.5 billion euros. “The bicycle industry has grown over the years and overall demand remains stable,” said von Rauch. But competitive pressure from China in particular could endanger the German bicycle industry. "We see that China is pushing forward the export of bicycles and components to Europe, also in response to the US tariffs." In some cases there are dumping prices.

Savings made by the federal, state and local governments also affect the bicycle industry, said von Rauch. Investments in cycle paths, which currently come from the Climate and Transformation Fund, would be under pressure in the coming years. But an expansion is necessary so that more people who are still holding back due to safety concerns can dare to ride a bike. The cycling infrastructure is making progress, but too slowly and not across the board. “The big hit is missing.”