Is the UK cycling industry showing signs of recovery following difficult period?
Posted on in Business News , Cycles News
Could the UK cycling industry be showing signs of renewed momentum? Following a challenging period marked by falling sales and overstocked inventories, overall trends and sales figures from larger brands suggesting improvement across the sector, which could see a benefit for independent cycling retailers.
A combination of improving retail sales, positive economic signals from Europe and growth in both traditional and electric bike segments has been reported, indicating that the bike sector could be turning a corner.
According to numerous industry outlets, March has proved to be a standout month, with total market sales rising by 12% according to the Bicycle Association, making last month’s performance the strongest March in three years. In addition to this, retailers have reported increased demand across multiple categories, with e-bikes, mechanical bikes, parts and accessories (PAC), and services all showing double-digit growth.
Large-scale manufacturers are also beginning to reflect this optimism, with Shimano’s bicycle division reporting a 15.6% increase in net sales in Q1 2025, compared to the same period last year, alongside a 38.5% rise in operating income. Shimano’s latest figures mark a continuation of the rebound seen in the second half of 2024, reversing the 5.2% net sales decline recorded over the full year, with the company forecasting continued growth in key Western markets and projecting year-on-year sales increases of 12% in Europe.
In a statement, Shimano said: “While the strong interest in bicycles continued as a long-term trend, market inventories remained high despite gradual adjustments. Overseas, in the European market, market inventories remained at a somewhat high level, while signs of recovery started to appear in retail sales of completed bicycles as demand stabilised.”
Alongside positive trends in manufacturing, retail chain Halfords has also reported an uptick in performance, with cycling sales rising 1.7% in the 2024–2025 financial year, which despite the modest increase indicates a notable change from the retailer’s more pessimistic outlook in the final quarter of 2024 when profits were down 25% year-on-year due to falling cycling demand.
Soon to be departing CEO of Halfords, Graham Stapleton, said: "This is a performance to be proud of, mitigating more than £30m of inflation in what continued to be a very challenging trading environment in FY25.”
Despite the positive trends, the broader picture remains complex for independent bike shops, with businesses still grappling with higher National Insurance costs and margin pressures.
Lee Kidger, of The Electric Bike Shop, has suggested that the cycling sector remains a challenging one to operate in despite the more optimistic reports. He said: “The market is clearly in flux, with retailers facing new pressures like rising National Insurance costs and a fast-changing consumer landscape. Businesses that are succeeding in 2025 are those doubling down on what they do best, using niche focus and sharper marketing to navigate uncertainty and stand out.”
“Customers are demanding more flexibility, especially around payment options, with interest-free finance and Cycle to Work schemes continuing to drive sales. Meanwhile, the industry is pushing innovation—particularly in e-motor tech—but consumers remain cautious, and there’s still a lack of clear direction across the sector.”
Steve Branson, also of The Electric Bike Shop, echoed Mr Kidger’s sentiments, commenting that e-bike retailing and community engagement is taking on new importance. He said: “I'm seeing more and more people now open to the idea of owning an EAPC compliant e-bike for business, pleasure and commuting which in turn is helping to build on inclusion. I also see, with the reduction on government focus in some areas, volunteer groups getting together to maintain cycle paths and trails bringing together a real community spirit.”