Our industry Laid Bare

As part of our aim to set up a new Cycling website we carried out some research into the state of the cycling industry along with the trends

We found the following interesting bits:

UK Market Description:

• The retail sector is now worth an estimated £2.6billion

• There are currently over 2000 cycle stores in the UK (Evans being the largest independent store)

• 3.7 million Bikes were sold in 2010.  Cycle retail sales were valued at £1.6billion.  There has been 28% increase in the volume of cycle sales in 2012

• Cycle accessory sales were around £853 million

• 23,000 people are employed directly in the sector

• £500m in wages are over £100m in tax are generated annually from the 23,000 employed in the industry

• The number of events increased by 15% in 2010 with figures hitting upwards of 5000 participants

• It is believed there are 13 million active cyclists in the UK (27% of the population). Regular Cyclists account for £5.4 million of these

• 40% of households own a bike

• The number of latent cyclists (potential’s) was seen as 2,25million – economic value of £700million

• Market potential £141 million over the next 2 years

• Cycling in London has increased 52% since 2007 and the introduction of a cohesive transport policy

• Currently only 2% of journeys are taken by bicycle.  In many Northern European countries this is over 25% and in the Netherlands it is 50%

• In the early 1950’s cycling accounted for 15 Billion miles, in 2010 this was only 3 billion but growing annually.  15% more miles were covered in 2010 versus 2007. 208million Journeys were taken by bike in 2010

• Net addition of 1.3m new cyclists in 2010 of whom 500,000 are

• Men make up 70% of all cycle journeys in the UK

• There is a prediction of a 20% increase in current cycling levels by 2015

• The greatest users are aged 40-49, with 30-39 being the second highest

• Men  completed 3 times as many miles as women

• 54,000 more women took up cycling in the first 6 months of 2012

• 2/5ths of all journeys were for commuting purposes

• The average distance travelled per person has increase 6% since 1998

• The LSE study found 3 key potential markets:

• Women between 35-44

• The busy dad

• The young active lifestyler

• The recession and the squeeze on household incomes and expenditure.  The average grocery shop has gone up 15% since 2008

• Fuel prices continue to increase. They have gone up by a staggering £0.29 per litre since 2008 and 52% in the past 5 years.  The estimate to be at a rate of £1.45 per litre by 2014

• A Mori poll commissioned for integrated transports carried out in 2000 amidst the backdrop of the fuel crisis found 80% of the public wanted improvements for cycling provision

• Focus in the press and mind set as regards healthy living and lifestyle.  Health and fitness sectors continue to grow despite the recession with health club number up 2% from 2010. 

• Team GB and Team Sky Success – what is known as the Chris Hoy affect after the Beijing Olympics (Bradley Wiggins success in the Tour de France and the huge success of not only the cycling team but the whole Team GB and Paralympics  teams in London will compound the impact)

• Success of events such as the SKY Rides and Evans sportive. Sky estimated and additional 400,000 cyclists tried the sport off the back of their events alone

• Increase in car free zones especially in major city areas.

• Lower speed limits with safety groups now calling for a 20mp limit in built up area’s

• Higher emissions taxes on vehicles

• Tax incentives to take up cycling (cycling to work schemes). 

• By 2011 400,000 employees had taken advantage of the scheme and is the UK’s second most popular salary sacrifice scheme. Some statistics of the scheme

• 133,442 tonnes of CO2 are saved annual by the scheme

• 84% of those taking part showed an increase in fitness

• 61% of those cycling did not cycle before taking part

• 76% said they would not have bought a bike without the scheme

• 70% of users classified themselves as novices

• 73% are men

• 64% had reduced their car travel by 50miles a week

• 98% say they would encourage others to take part

• 901,000 miles were ridden by cycle to work scheme users.  An average of 29 miles/week

• Bike rental schemes such as the Barclays London scheme.  The success of London is helping the set up of many other such initiatives around the country

• Improved safety and accessibility with there now being over 12,000 miles of cycle specific networks.

• Increase in women taking part in cycling.  Women’s only races (cycletta’s) becoming more popular.  In Europe women lead the way in participation with 55% of al trips being undertaken by women.

• The cost of treating obesity to the UK business and NHS being in the region of £4billion per year and is forecast to double by 2050, giving rise to healthy lifestyle debates and initiatives.

• The huge cost savings available to businesses as a result of reduced absenteeism could equate to as much as £1.6 billion to the British economy over the next 10 years

• Emissions reduction targets will increase the focus.  This could save the economy £71 million in lower pollution levels

• A public desire to see a change in transport policy and willingness since the mid 1990s for government to listen and invest.  Most recently a fund of £560 million has been put aside by the government for investment in transport systems that reduce greenhouse gas emissions.  Many local authorities are looking at cycling as a way of achieving their goals.

• Specific schemes the government set out in their coalition white paper were

• Cycling demonstration towns, Bikeability, the links to school programme, Bike Club, Bike it and walk it to school and the cycle journey planner.

• The government announce d in February 2012 £8million for Sutrans to develop cycle routes and £7 million to the cycle rail working group to improve cycle/train integration

• Tax incentives for business miles up to 20p a mile is also now in place

• Bikeability training is helping to encourage higher proficiency and thus safer riding and the bike hub scheme continues to encourage the development of clubs.

• The return on investment for cycling schemes has been calculated at 20:1 versus other transport models of 3:1

• The London Cycle Hire scheme and the pledge by successive London mayors to make London Cycle friendly

• European wide schemes have shown to be tremendously successful giving confidence that investment will lead to greater participation in the UK.  In Holland the rates have increased to almost ¼ of all journeys now being completed by bike

• Scenes watching the recent Tour of Britain where thousands have turned up each day to watch the race show the vast increase in the sports popularity.  Scenes mirrored those seen in the Tour de France.

Trends in the current market:

Frequent or Regular Cyclists

What will further increase the trend towards cycling?

Resources:

LSE – The British Cycling Economy, Mintel, Sport England

Internet articles including those from the BBC, Guardian, Director.co.uk. The Times, Sustrans, British Cycling, The fredcast, (European cyclist federation)

Sport England

Road cycling: statistics, house of commons library

Cycling policy in the UK – University of East Anglia

Cycle to Work Alliance – behavioural impact analysis