Bicycle exports rebound after two-year slump

Bangladesh's bicycle exports are showing signs of recovery, rebounding after two years of decline since peaking during the pandemic-era boom.

Exports rose to $117 million in the last fiscal year (FY) 2024-25, marking a 41 percent increase from the previous fiscal year's $83 million, which marked the industry's lowest point in five years, according to data from the Export Promotion Bureau (EPB) released recently.

Exports of the two-wheeler had peaked at $168 million in FY2021-22, driven by a surge in European orders during lockdowns, when cycling became a preferred means of commuting and recreation due to social distancing requirements.

"The demand for bicycles in the European market experienced a significant surge during the pandemic period. This was largely driven by a growing preference for individual and environmentally friendly transportation options that supported social distancing," said Md Luthful Bari, chief operating officer at the Meghna Group of Companies, one of the largest bicycle exporters in the country.

He, however, noted that the trend shifted sharply in 2023. As economies reopened, global demand declined, retailers were left with excess stock, and Bangladesh's bicycle exports dropped to $142 million in FY2022-23 before falling further in the next fiscal year.

"The ongoing geopolitical crisis in Europe, particularly the Russia-Ukraine war, had a direct and adverse impact on the bicycle market," he said.

Industry insiders say the recent export uptick suggests early signs of stabilisation.

Exporters cite easing freight costs, improved global logistics, and renewed interest in low-cost, sustainable mobility as contributing factors. Some Bangladeshi manufacturers have also shifted towards value-added products, including lightweight and electric bicycles, in a bid to stay competitive.

"Exports are gradually increasing as international buyers have started placing new orders," said Bari.

Meanwhile, Kamruzzaman Kamal, marketing director of Pran-RFL Group, another major player, said, "In total, we've seen around 20 percent growth."

He credited the growth to targeted market diversification and product adaptation to meet global standards.

"We've opened up several new markets, including in the USA, and seen moderate recovery in European sales," Kamal told The Daily Star recently. "At the same time, we've resolved some key product development issues, which helped push export volumes up."

He added that the opening of new international markets has begun yielding positive results, with increased sales from the USA market contributing significantly to the company's recent export performance.

Kamal noted that while the company introduced electric bicycles in recent initiatives, these were not entirely new products, but refinements within existing lines aimed at meeting international regulatory requirements.

"There were some technical compliance issues, particularly around product size and safety regulations, that we had to address for specific export destinations," he explained. "These adjustments were critical for continuing access to key markets."

The improvements come after a challenging period marked by adverse weather, slowing demand in Europe, and the ongoing fallout from the Russia-Ukraine war, all of which had dampened export performance in previous years

The improvements come after a challenging period marked by adverse weather, slowing demand in Europe, and the ongoing fallout from the Russia-Ukraine war, all of which had dampened export performance in previous years, he said.

"With the geopolitical climate now somewhat stabilised and economic activities picking up in our core markets, we are seeing renewed growth," Kamal said.

Despite the improvement, Bangladesh's bicycle exports remain 30 percent below their FY22 peak, highlighting that the sector's recovery is far from complete. Rising production costs and competition from low-cost producers such as Cambodia and Vietnam continue to weigh on local manufacturers.

Bari, however, remains optimistic that the sector will continue to recover gradually as market conditions stabilise and buyers resume regular procurement.