Poland's Bicycle market continues to grow

Poland is Central Europe's 2nd largest market for Bicycles, components, accessories, clothing behind CE leading market Germany. There is no question that Poland's fondness for the bicycle is increasing helping create opportunities for the Bicycle Industry. The Veturilo bike sharing program in Warsaw is one of the best systems of its kind in the world, and according to a new report by the WHO and the United Nations Economic Commission for Europe, 5% of all travel within the capital is being taken by bicycle.

Just last year, over one million bicycles were purchased by Poles. This number exceeds the number of cars purchased in Poland for 2013, according to GUS statistics. The value of Poland’s bicycle market is now valued at approximately PLN 1.02 billion.

The majority of Poles are buying new bicycles, bringing the primary market to around PLN 900 million. There are also roughly 10% of people who are buying used, generating PLN 120 million in 2013. These figures are from a report by the Polish Bicycle Association (PSR) along with the IPC research institute and are corroborated by statistics from GUS.

The total sales of PLN 1.02 billion accounted for approximately 1.28 million bicycles that were sold in 2013. The sales included locally produced bicycles that were made and sold in Poland, the net export of bicycles, 180,000 used bicycles, and 100,000 bikes that were produced by smaller companies. The total number of manufactured bicycles in Poland was 950,000, according to PSR reports.

A growing number of people in Poland are reporting that they regularly use bicycles for transportation. In a study done by PSR, 40% of respondents reported that they road their bike every day. This group made up the largest number of respondents, a surprisingly high amount when compared with other developed countries. One third of respondents (31%) reported that they rode their bike several times a week. Around 5% of people noted that they only used their bike seasonally, and 2.5% reported that they will ride their bike daily during the warmer months.

It appears that more people are purchasing low-cost bicycles than any other group (around 30%). Reports indicate that around one third of the market sales come from bicycles costing less than PLN 600; however, there is still a significant amount of people (around 12%) in Poland purchasing bicycles that cost more than PLN 3,000. This group of bicycles typically falls into the specialty category including high-end racing bikes and mountain bikes. While specialty bikes are become more popular, city and touring bikes continue to be the most frequently purchased.

The majority of Poles (51%) are going to specialty bicycle stores to purchase their bikes, according to the PSR report. Meanwhile, there are another 13% of bicyclists who purchase their bikes from general sporting goods stores and another 11% who shop at superstores. In total, there are more than three thousand stores selling bicycles in Poland.

The increase in sales volume has also created a growth in production. In 2013, Poland was ranked 4th in Europe for number of bicycles manufactured. The total production numbers came to 950,000 bicycles. Italy, the Netherlands, and Germany were ahead in production last year, while France was tied with Poland. The Polish bicycle industry is expected to continue to grow and eventually beat out other Western European countries due primarily to lower labour costs, but also having a skilled workforce and a central geographic location, close to the world’s largest bicycle market. EU and Asian manufacturers have already recognized the advantages of production in Poland and have become major investors in the country’s bicycle production industry.

Early data from 2014 is showing a continued growth from last year’s figures. GUS is reporting that in May 2014 there were 106,000 bicycles produced in Poland, an increase of 42% y/y. From January to the end of May 2014 production numbers of 548,000 were achieved, which translates to a 12.2% increase from the same period last year.

Two firms make up more than 60% of bicycle production in Poland: Kross and Arkus&Romet. Romet has a 40% market share, making it Poland’s biggest bicycle manufacturer. In 2013, export and import rates remained stable for bicycles with exports reaching PLN 276.4 million, which is only a 1% growth from the previous year. Imports had a small growth in 2013 as well, rising by 1.2% y/y.

Most Polish bicycle exports go to European countries, but there is also an emerging market in Asia which Polish manufacturers are just starting to make contact with. The majority of Polish bicycle exports, roughly 60%, went to Germany in 2013. Arkus&Romet has recently entered the Chinese market, and Polish firms are expected to continue to seek out growth opportunities in the Asian markets.

While Polish manufacturers continue to look for new clients in Asia, Taiwan is still the biggest exporter of bicycles and parts to Poland. In 2013, Poland imported almost 55,000 bicycles from Taiwan at a cost of roughly PLN 41 million. Poland also imports a large amount of bicycles from Portugal, bringing in 48,000 bicycles worth PLN 25 million in 2013.

Another measure of the success of the bicycle market in Poland is the growth of its bicycle expos. This year marks the 5th annual KIELCE BIKE EXPO in Poland. In those five short years the expo has grown significantly, gaining attention from national and international bicyclists. In its first year, the KIELCE BIKE EXPO attracted 60 exhibitors from 6 countries. In its fourth year 180 exhibitors from 13 countries participated. In Poland the KIELCE BIKE EXPO now holds first place in the rankings nationally, and across Central and Eastern Europe the expo is known as one of the top events in the bicycle market.

Poland is Central Europe's 2nd largest market for Bicycles, componets, accessories, clothing behind CE leading market Germany.There is no question that Polands fondness for the bicycle is increasing helping create opportunities for the Bicycle Industry. 

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