<\/p>\n Stories about other brands paint a similar picture. Trek<\/a>\u2019s 50-year anniversary this year has come not with celebration, but concern about the brand\u2019s future, according to a report in Escape Collective<\/a>, with sales targets slipping and notices of redundancies. Likewise, Shimano<\/a>, the world\u2019s most popular bike components brand, has endured three years in a row of tumbling profits across its cycling range.<\/p>\n Article continues below <\/p>\n You may like<\/p>\n These figures provide a snapshot of a market in distress. So what\u2019s the context behind it all? Why are bike brands struggling so much at the moment? The answer, of course, is multifaceted; it lies in geopolitics and world economics \u2013 tariffs<\/a> and inflation in the US, a global cost of living crisis, and deflation in China \u2013 but also a common denominator that now stretches back four years, and is still acting as a slow puncture on the industry: the Covid pandemic<\/a>.<\/p>\n Post-pandemic blues<\/p>\n It\u2019s difficult to fathom now just how big cycling became during Covid. Against a backdrop of growing health anxiety, more free time, and less social spending, consumers turned to cycling, and people who hadn\u2019t owned bikes since their school days suddenly splurged on 11-speed road machines.<\/p>\n Looking to harness the boom, major brands increased their footprint \u2013 Trek, according to Escape, acquired retail stores at a rate of \u201ca dozen or two dozen at a clip\u201d in 2020 and 2021; Specialized<\/a> scaled up their stores at the same time \u2013 and stocked warehouses full with shiny bikes, ready to ship.<\/p>\n Except many never made it back out the doors. Stock piled high, the pandemic lifted, life went back to normal, and demand quickly waned. \u201cWe had a feast and a famine,\u201d Angelo Mascelli, general manager for business at Giant US, recently told Bicycle Retailer<\/a>.<\/p>\n \n (Image credit: Getty Images)<\/p>\n To clear the excess inventory, many brands turned to discounting<\/a>. This was fruitful for consumers \u2013 who doesn\u2019t love a bargain? \u2013 but cut back profits for companies, who are still feeling the impact today. Canyon<\/a>, for example, said earlier this month it is \u201ccontinu[ing] to navigate a challenging market environment marked by oversupply and discounting.\u201d<\/p>\n This hangover from price-slashing<\/a> is a large part of the reason why some brands have experienced an increase in sales volume, but a fall in profit margin (Shimano<\/a> reported a 2.7% rise in net sales in 2025, against a 21% decline in operating income.)<\/p>\n \u201cFortunately, I think for most brands, we’re through the heavily distressed inventory period,\u201d Giant\u2019s Mascelli said. The hope now is that stock levels will keep stabilising as the post-Covid years roll on, and normal trade will resume.<\/p>\n What to read next<\/p>\n Tariff trouble<\/p>\n In researching this article, Cycling Weekly reached out to contacts at four different major bike brands to ask about the biggest issues they face; two refused to comment and two did not reply. Business struggles, understandably, are a touchy subject.<\/p>\n Though private US-based companies do not need to divulge their financial information, other bike brands give detailed summaries in their annual reports, which have formed the spine of this piece. Within the latest reports, one topic recurs again and again: uncertainty in the US, particularly regarding tariffs.<\/p>\n \n (Image credit: Getty Images)<\/p>\n It\u2019s been almost a year now since President Donald Trump first announced a minimum 10% import duty as part of what he called \u2018Liberation Day\u2019. In the time since, additional tariffs have fluctuated according to the product (steel and aluminium, two key bicycle materials, carry 50% tariffs<\/a>) and the country of origin (Asian countries, namely China and Taiwan, where many global bike brands manufacture, have been heavily targeted. Last November, trade association PeopleForBikes<\/a> estimated the total tariff cost on bicycles imported from China to be around 60%).<\/p>\n Countries like China and Taiwan are \u201cthe beating heart of the global cycling supply chain,\u201d Madison CEO Dominic Langan wrote in BikeBiz<\/a> last April. \u201cFor an industry still navigating oversupply, squeezed margins, and consumer price sensitivity, [the tariffs] couldn\u2019t have come at a worse time.\u201d<\/p>\n Often with import duties, it\u2019s the consumer who ends up absorbing the cost. Trek and Specialized \u2013 who, despite being US-headquartered, both manufacture in China and Taiwan \u2013 announced price hikes in the US last spring; Trek did not specify by how much, while Specialized introduced a 10% tariff surcharge as a line item on business-to-business invoices<\/a>.<\/p>\n These rising costs made buying bikes more expensive, prohibitively so for many. As a result, the market has faded. Canyon said consumer demand has \u201csubdued\u201d in Asia and the US, specifically citing \u201ctariff uncertainty\u201d. Similarly, Taiwan-based Giant has felt a \u201cmild decline\u201d in the US, \u201cimpacted by slower demand recovery and U.S.-bound shipment delays.\u201d (Since September, Giant has also been subject to an effective import ban<\/a> in the US over allegations of forced labour<\/a>. The company\u2019s global revenue fell 40% year-on-year last month).<\/p>\n With such significant hurdles to access one of the world\u2019s biggest markets, it\u2019s no surprise the consequences have been felt sorely.<\/p>\n Deflation in China<\/p>\n China, undoubtedly, remains the industry’s largest market. There are estimated to be around 500 million bikes and e-bikes<\/a> in use in the country, which is responsible for producing roughly 60% of units sold worldwide. Following the pandemic, however, the Chinese economy has been in a state of deflation, and the market has slumped.<\/p>\n Hang on\u2026 deflation? I know what you’re thinking: if inflation, like that seen in the US and UK, has meant costs rising for consumers, then surely deflation \u2013 costs dropping \u2013 is a good thing? Not necessarily. Consumer behaviour trends show that, when prices appear to be going down, people tend to delay purchases, in hope of securing more of a bargain. As a result, immediate demand drops away.<\/p>\n \n (Image credit: Getty Images)<\/p>\n This economic situation is likely why Giant felt its sales performance \u201csoften\u201d in China in 2025; Shimano reported \u201clacklustre\u201d retail sales in the country, down 38% year-on-year; and Merida, which part-owns Specialized, saw a 50% decline in revenue across its Asian markets of China, Hong Kong and Japan, according to Bike Europe<\/a>.<\/p>\n Business reports<\/a> suggest China\u2019s deflation is slowly easing. But there\u2019s now a worry that surging oil prices due to the war in Iran may spike the country\u2019s economy the other way, into inflation<\/a>. How this affects the cycling industry remains to be seen, although economic turbulence is rarely good for businesses.<\/p>\n![\"rows](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/03\/RkLkYPxrGEKJgNxFyRJsYU.jpg\")
\n<\/p>\n![\"Shipping](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/03\/Bj7KeknR2qe4q2wZ8suVvX.jpg\")
\n<\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/03\/qLXaQpnduRtw6YAiN3xeka.jpg\")
\n<\/p>\n