In the 12 months ending October 2021, the U.S. cycling market grew revenue by just 3% from the previous year, to just over $ 8.4 billion, data shows by NPD Retail Tracking. During the period of last year, sales increased 45 percent.
Dirk Sorenson, Executive Director, Industry Analyst, Sports at NPD, âWithout a doubt, the unprecedented growth that occurred during the previous period was a direct result of consumers purchasing products that enabled more activities at home and around the house. It’s clear that products offering social connection, outdoor escape, and physical activity are the real winners during the pandemic. “
Nonetheless, NPD believes that there are many reasons why American cycling can expect a return to solid growth in 2022.
Sorenson said, âFirst, sales of electric bicycles (electric bicycles) continue to grow. Now a category of $ 741 million, e-bike revenue grew 47% in the 12 months ending October 2021, compared to the same period in 2020. The growth of e-bikes should come as no surprise, as these bikes meet the needs of an aging population. The American population provides easy access to family-friendly outdoor activity and meets some of the travel needs in denser population centers.
âSecond, as the supply chain issues are resolved, I expect the problem of delivering enough product to decrease. The cycling industry has been challenged this year to meet the demands of bicycle dealers, especially for categories such as mountain bikes, premium road bikes and some transit bikes. Even now, the situation is starting to turn around. In fact, NPD inventory data for the specialty bike market indicates that sales to inventory ratios for many of these critical bike categories are improving.
âFinally, some of the policy changes currently being considered at the federal level could provide a compelling new reason to consider an investment in cycling. The Infrastructure and Jobs Investment Act invests in making streets safer and some of that investment will certainly help alleviate cyclist safety concerns.
âNext year, the cycling industry is also poised to benefit from several policy changes in the Build Back Better Act, recently approved by the US House of Representatives and currently under consideration by the Senate. This includes a 30% refundable credit of up to $ 900 for e-bikes costing less than $ 4,000, and up to $ 81 per month in benefits for bicycle commuters. These are strong incentives for consumers to buy and cycle, if this legislation is enacted. “