Market

marketBicycle Sales

Australians purchased over 1.2 million bicycles in 2008. This is the ninth consecutive year in which Australians have bought more bicycles than cars. Australian bicycle sales have soared to record numbers in recent years. Figures from the Australian Bureau of Statistics show that Australians purchased 1.2 million bicycles in 2008. The trend of soaring bicycle sales is a global phenomenon. In 2007, 130 million bicycles were sold worldwide (Earth Policy Institute, 2007).


A snapshot of the Australian bicycle industry

The business of selling and servicing bicycles in Australia has grown dramatically over the last ten years. In 1998, a little over 650,000 bicycles were sold. Almost three times as many bicycles are now sold each year. When these figures are added to the cost of servicing and purchase of accessories, such as helmets and lights, the Australian bicycle industry is worth between $950 million and $1 billion in 2008. It is estimated that 6000 Australians are currently employed in the bicycle industry and this number continues to grow.

The Australian bicycle industry is worth between $950 million and $1 billion in 2008

Bicycle products and services – the retail picture in Australia
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Bicycle products and services are offered to Australian consumers through four distinct channels of distribution

Australia has 849 independent specialist bicycle retailers which not only sell bicycles and related products but also add value through custom services such as bike fitting, expert assembly, repair and maintenance. As the above graph illustrates, specialist bicycle retailers account for 44.8% of retail outlets in the bicycle retail sector. The number of specialist bicycle retailers has remained stagnant with some growth over the last few years in shops focusing on particular markets such as commuters. The mass market retailers sell mostly lower priced products and account for around 36% of the number of retail outlets selling bicycles. Some 12% of bicycle retail outlets fall into the ‘Other’ category and this is made up in part by toy stores and other small mixed businesses. This category is stronger in regional and rural areas, where there may not be the market for an independent specialist retailer. Sports stores account for 7% of retailers selling bicycles and related products.

The distribution of bicycle retail stores in Australia by state is linked to population numbers and cycling participation levels.
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Independent specialist bicycle retailers sell the vast majority of parts and accessories and hold virtually 100% of the bicycle service market. The bicycle service market has seen considerable growth in recent years due to the increase in cycling participation and the considerable growth in cycling for transport, particularly in urban centres around Australia.

Australians are buying more bicycles and are using them.

The ABS Census for 2006 showed a strong upsurge in the numbers of Australians choosing to ride to work. Capital cities recorded a 28% increase in commuting by bicycle, with Melbourne recording the sharpest increase, at 48%! The table below provides a summary.

Over half our car trips in capital cities are less than 5km (Austroads, 2005; RMIT, 1999)

Unfortunately in 2007 more than 3.4 million Australians over 15 years of age did not participate in any physical activity for exercise, recreation or sport according to the Australian Sports Commission (2007). The good news is that cycling participation has been increasing by 10.6% since 2001. In 2007 1.59 million adults cycled (see table top right) with more than 440,000 people cycling three or more times a week (Australian Sports Commission, 2007). Cycling is the 4th most popular physical activity for adults and is now more popular than golf or fishing. Cycling is for Australians of all ages. In 2007, 800,600 people between 45 to 54 years of age cycled and 244,800 people over 55 years cycled in the same period, highlighting that cycling is an activity that can be undertaken by people of all ages (Australian Sports Commission, 2007).


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Although the growth in cycling has been impressive, significant, untapped potential exists to boost the number of Australians choosing to ride. A large proportion of car trips in cities are surprisingly short. In fact, over half our car trips in capital cities are less than 5km (Austroads, 2005; RMIT, 1999). Around 1.35 million Australians make car journeys’ to work of less than 5km (ABS, 2006). These short car trips are an ideal cycling distance – helping to cut fuel, congestion and parking costs, combat climate change and boost physical activity levels. Australians are buying bicycles in record numbers and using them not just for recreation, but increasingly as a replacement to short/medium car trips.

Making cycling even more attractive

It is clear Australians are buying bicycles in record numbers and using them not just for recreation, but increasingly as a replacement to short/medium car trips. Although the growth rates are impressive, trips to work by bicycle account for only around 1.5% of trips to work. In order to further boost the proportion of Australians choosing to cycle, it is recommend that:

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  • A significant boost to the on and off road bicycle network be implemented by all three levels of government. This will help create a bicycle friendly environment.
  • Bicycle education classes be offered in schools and workplaces. This will provide the necessary skills to encourage safe, confident cycling.
  • Lower the default speed limit in urban areas to 30km/h to improve road safety for all road users (World Health Organization, 2008).
  • Government fund widespread encouragement of public transport, walking and cycling through such programs as TravelSmart as well as mass media campaigns.

 

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