The on-off reporting on whether hostilities in the Middle East will end is causing significant business uncertainty. Moreover, the heavy reliance on deliveries of parts and components from Asia leads to major cost fluctuations. As this uncertainty persists, suppliers and bicycle manufacturers will factor this into their pricing. The consequences are ultimately higher costs and higher bicycle prices in stores, as evidenced by the most recent Global Bicycle Purchasing Index (GBPI).

The highly volatile market posed a big challenge for the bicycle industry in recent years. More stability would have created room to start building on a new growth path. It appears that the market will be stable in 2026, thereby bringing the necessary calm for future recovery. "The market is steadily returning to a more normalised environment as inventory adjustments near completion," said Giant Chairman Young Liu at the annual meeting of shareholders.

The market has finally reached a renewed level of stability. Despite global economic uncertainty and disruptions in recent months, overall confidence remains stable to moderately positive, as shown by the latest Global Bicycle Purchasing Index (GBPI). Following several years of exceptional volatility, the industry can once again look ahead with greater confidence and focus on sustainable growth and future development.

The spike in oil prices has drastically changed the market outlook. Raw material prices plus the costs of production and logistics have been affected by the geopolitical situation. The high fuel prices worldwide could also attract more people to start cycling. Are you prepared to adapt to the new situation? The Global Bicycle Purchase Index (GPBI) will provide you with these insights next month.

As the bicycle industry strives to better synchronise supply chains with market demand, access to reliable market intelligence has become increasingly important. The Global Bicycle Purchasing Index (GBPI) addresses this need by providing sourcing insights and a medium-term market outlook through an indicator that anticipates future industry trends. In a conversation with Bike Europe, Orbea Supply Chain Chief Officer Pablo Trujillo, explains how they manage the challenge of forecasting.

As expected, the financial performance of leading industry companies shows that 2025 was a challenging year for the bicycle industry. Especially the leading bike manufacturers were down as they had to continue discounting to bring their inventory levels back to healthy levels. Component manufacturers reported stable sales as replacement parts remain in demand, and the OEM order books for 2026 show a moderate increase again.