Bicycles have been around for more than 200 years now and were far from a high-growth industry before 2020. But then, COVID-19 happened.
Bike sales exploded during the pandemic. According to National Bike Dealers Association data, bicycle sales increased almost 30% in 2020 and another 15% through the 12 months ended in July 2021.
The global economic situation worsened as the pandemic shifted, and consumers spent less than they had in 2020 and 2021. Since then, the impact of inflation on the cost of living and other core expenditures has made consumers more hesitant to spend money on bicycles.
The cycle shifted from above-average demand for bicycles to a gradual decline, leaving retailers with excess inventory. In 2023, bike sales of around $4 billion in the U.S. represented a 24% decline from 2020, although it was still up 23% compared to 2019.
Factors that drive bicycle sales include an increased interest in exercise and wellness, more time spent outdoors, environmental consciousness, and bike-sharing technology. Despite the bumpy ride that some bicycle businesses are experiencing right now, some analysts still think that the global bicycle market size could reach $274.1 billion by 2032, a compound annual growth rate of 10.6% from its current valuation.
Stocks that play a part in this suddenly expanding industry could present an investment opportunity for those with the appropriate investment horizon and risk appetite.
How to invest
Investing in bike stocks in 2025
Bicycle manufacturing stocks -- part of the industrial sector of the economy -- are difficult to invest in directly. Many bike companies are subsidiaries of larger manufacturing conglomerates, transportation parts suppliers, vehicle makers, and the like. However, a few stocks that are more focused on bicycling could present an opportunity to bet on the industry's growth in the years ahead.
| Company | Market Capitalization | Description |
|---|---|---|
| Shimano (OTC:SMNNY) | $17.03 billion | A Japanese manufacturer that makes bike components. |
| Peloton Interactive (NASDAQ:PTON) | $1.25 billion | A top at-home workout company and stationary bike maker. |
| Vista Outdoor (NYSE:VSTO) | $2.28 billion | A manufacturer of various outdoor gear, including bike accessories. |
| Halfords Group (OTC:HLFD.F) | $393.17 million | A leading motoring and cycling retailer in the U.K. |
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1. Shimano
Japanese manufacturing conglomerate Shimano is a top name in outdoor gear. Its bike components are regularly featured on all sorts of bicycle models, from affordable to high-end road bikes. From brakes to cranksets, Shimano is an important parts supplier for the biking industry.
Historically a slow-and-steady industrial business, Shimano's sales have come under pressure recently as spending patterns have slowed while global inventories remain high. Still, if you're looking for a way to bet on bicycles, electric bikes (e-bikes) and related outdoor equipment may be a long-term, durable consumer trend, and Shimano should rank as a smart way to profit over time.
2. Peloton Interactive
There was arguably no bigger fitness and gym business beneficiary from the pandemic than Peloton. The at-home high-end workout equipment company picked up millions of users in 2020. Momentum slowed dramatically starting in 2021, though, as people began leaving home once again, competition for connected workout equipment increased, and a tragic accident led to a recall of its premium treadmill.
Consumer spending patterns have also changed significantly since the pandemic, affecting companies across a range of industries, and Peloton has been no exception. Peloton went through multiple rounds of layoffs, including a shakeup in May 2024, and Barry McCarthy stepped down as CEO in May 2024, just two years after taking the job.
The company recently refinanced almost $1 billion of loans that had an original maturity date in 2026 to a new five-year plan and is engaging in aggressive cost-cutting efforts to reduce annual run-rate expenses by more than $200 million by the end of its 2025 fiscal year.
Of course, Peloton is no traditional bicycle company. Its popular bike product is stationary, relying on a large tablet and engaging content to keep users pedaling like mad. Nevertheless, a bike is a bike. Millions of additional people could pick up a Peloton cycle product in the years ahead since stay-at-home workouts look like they'll remain part of many household routines.
Just bear in mind that Peloton's steep slowdown from triple-digit percentage revenue growth during the pandemic will likely continue to create some incredibly volatile share price action. This is probably a stock for only the most aggressive investors with a well-diversified portfolio and healthy risk appetite.
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3. Vista Outdoor
If you're an avid outdoor enthusiast, there's a good chance you have some accessories made by Vista Outdoor. The company's subsidiaries include CamelBak, Bushnell, Camp Chef, and Remington. In addition to accessories, Vista Outdoor also owns the QuietKat e-bike brand, which is a popular choice for those looking for a greener commute and a more efficient ride.
Like Shimano, Vista Outdoor has historically been a slow-and-steady affair. Sales had been struggling to gain traction in the years before the COVID-19 pandemic. Outdoor equipment and bike demand in 2020 and the period immediately following quickly reversed this small company's fortunes.
Now, the company is experiencing pressure on the top and bottom lines, although it is still profitable. Sales totaled $644 million in the first quarter of the company's fiscal 2025, while net income totaled $57 million. The company also generated operating cash flow of $54 million.
If spending on bicycles recovers over the next three to five years, it could be a boon for Vista Outdoor and its shareholders.
4. Halfords Group
Halfords Group (along with its Tredz subsidiary) is the leading motoring and cycling retailer in the U.K. Much like the other companies on this list, Halfords Group was not a growing business leading up to 2020. The pandemic provided a surge of activity for the company. It reported record sales in 2021 and a big rebound in profitability.
Halfords Group began a concerted effort to increase its online sales and focus on core offerings back in 2018. The strategy has paid off so far. In early 2021, the company also launched its own e-scooter and e-bike brand, Carrera, as it retools its offerings for a new generation of cycling and motoring enthusiasts.
Although bicycle sales volumes are struggling industrywide, the company still delivered share gains in all four of its core markets during the fiscal year that ended March 29, while group revenues grew 7.9% from fiscal 2023.
Don't expect this to be a high-growth company. But if bicycle popularity remains strong, Halfords Group could be a long-term winner in the industry.
Related investing topics
Should I invest?
Are bike stocks a good investment?
Whether it's a way to enjoy the outdoors, a sporting event, or a short-distance commute solution, bikes feature prominently in the transportation industry. Just bear in mind that the post-pandemic slowdown could cause some volatility in bike stocks in the near term.
Nevertheless, the growth forecast in this industry over the next decade or so is nothing to balk at. Investing in bikes could be a lucrative ride.
