The cycling industry’s post-pandemic reality check continued through 2024, revealing a stark divide between established markets and emerging opportunities. While some industry giants successfully navigated these choppy waters through strategic pivots, several iconic brands faced existential challenges, painting a complex picture of an industry in transition.

Market Leaders Adapt to New Realities

Even industry heavyweight Shimano felt the sting of market normalization, with bicycle component sales declining 12% compared to 2023. The Japanese manufacturer’s operating income dropped to its lowest point in a decade at ¥41.3 billion, further complicated by a costly Dura-Ace and Ultegra crankset recall. However, Shimano’s story isn’t one of simple decline – their long-term growth trajectory remains positive when viewed against pre-pandemic benchmarks, and their regional performance tells a fascinating tale of market shifts. While North American sales dwindled to just 6% of their total revenue, European markets held steady at pre-pandemic levels, and Chinese sales surged past even their pandemic peaks.

Giant Group’s 2024 performance similarly highlights the growing East-West divide in the cycling market. Despite posting a 12.6% decrease in consolidated revenue for the first half of the year, Giant’s swift pivot to capitalize on China’s recreational cycling boom proved masterful. The company successfully redistributed excess European and North American inventory to meet surging Chinese demand, particularly in the high-end segment. This strategic adaptation helped maintain healthy gross margins above 21% and positioned the company for a stronger second half as Western markets began showing signs of inventory normalization.

Legacy Brands Face Existential Challenges

While market leaders adapted through geographic diversification, 2024 proved particularly challenging for several iconic brands. Rocky Mountain Bicycles, a cornerstone of Canadian mountain biking culture, entered creditor protection under the CCAA, marking a significant setback for the Vancouver-born brand. The timing proved especially unfortunate, coming shortly after their European expansion through the acquisition of their German distributor, Bike Action.

GT Bicycles, another brand that helped define mountain biking’s golden era, announced major restructuring plans extending into 2025. Under new leadership, the company began liquidating inventory and implementing layoffs, with Cycling Sports Group stepping in to handle warranty and customer service responsibilities. For many mountain biking enthusiasts who grew up idolizing GT’s legendary LTS and Lobo models, this development represents more than just business news – it signals the end of an era.

The challenges weren’t limited to traditional bicycle manufacturers. Advanced Bikes GmbH, a promising German e-bike manufacturer known for its innovative Reco circular frame production system, faced insolvency despite its forward-thinking approach to sustainable manufacturing. Their story particularly illustrates the risks of expansion timing – their new Rieste facility, capable of producing 100,000 units annually, opened just as the industry’s inventory crisis began to bite.

Looking Forward

As 2024 draws to a close, the cycling industry’s landscape continues to evolve. The success stories of companies like Giant and Shimano in Asian markets suggest that geographic diversification and market adaptability are becoming crucial survival skills. Meanwhile, the struggles of beloved brands like Rocky Mountain and GT Bicycles raise important questions about the future of mid-sized, premium bicycle manufacturers in an increasingly consolidated market.

The industry’s current state reflects broader shifts in consumer behavior, market dynamics, and regional economic patterns. As we look ahead, it’s clear that success in the cycling industry will require more than just great products – it demands agile strategy, market awareness, and the ability to pivot quickly in response to changing conditions.