After the pandemic-driven cycling boom, the global bicycle industry has been dealing with an inventory glut. But Taiwan’s Giant Manufacturing Co. Ltd., the world’s biggest bicycle maker, is showing it has a plan not just to get through the downturn, but to stay ahead. Its 2024 annual report highlights how the company is leaning on its global supply chain, pushing high-value innovation, and betting big on sustainability as the next key advantage.

The numbers reflect the short-term slowdown; revenue fell 7.4% to $2.28B, while net profit after tax (income attributable to owners) dropped 62.8%. By the end of 2024, Giant had cut its inventory-to-asset ratio from a peak of 44% down to 34%, below 2021 levels. This tighter inventory control, along with strong sales in China and a shift toward mid- to high-end bikes, has helped Giant ride out the slowdown better than many rivals.

The Financial Picture:

The headline figures reflect a challenging year. The significant $60.8m inventory impairment loss, a result of aging stock and necessary sales discounts, dragged the gross margin down to 19%. As a result of this Net Income fell by 58% from $114m to $47m. This is the lowest net income in the last 10 years.

The real story, however, is geographic. While demand in Europe and the U.S. was “sluggish,” leading to a “significant decline” in the OEM business as customers turned conservative, Giant’s own-brand business in China was “brilliant.” This success in China, which commanded a larger share of the Group’s profit, ironically led to a higher overall tax burden due to profit repatriation, further impacting the bottom line.

This dichotomy highlights the strength of Giant’s dual strategy: balancing its legacy OEM manufacturing for global brands with the robust development of its proprietary brands (GIANT, Liv, Momentum, CADEX). This diversification provides a crucial hedge against regional market fluctuations.

Bike Sales Volume  and Revenue Per Bike

Global sales volumes peaked in 2021–22 at around 4.9m units but dropped sharply to 3.9m in 2023 before stabilizing at the same level in 2024. Regionally, Asia accounts for over two-thirds of sales. In contrast, both America and Europe have seen steep declines, together falling from nearly 2m units in 2020 to just 0.75m in 2024.

In 2023, Average Revenue per bike (RpB) in the domestic market (Taiwan) reached new heights at $670. This has surpassed the average revenue per bike in overseas markets, where it is $565. It is interesting to note that the volumes in Europe and the US have dropped in the last 2-3 years, as a result of this, overseas RpB have fallen behind the domestic RpB number.

Giant Manufacturing Co Ltd Stock Performance

Giant’s Market soared to $1.26B in 2025. The stock price has taken a hit in 2025, with a 26% dip in the year so far, from $4.50 in January to $3.37 as of September 4.

The Strategic Response: Innovation, Premiumization, and ESG

Faced with these market dynamics, Giant’s strategy is clear: innovate its way up the value chain.

1. Product Leadership: In 2024, Giant wasn’t just selling bikes; it was launching benchmarks. The all-new 10th-generation TCR series, hailed as the lightest and fastest ever, cleaned up at awards shows. Perhaps more significantly, Giant made its first major foray into the electric road bike segment with the Defy Advanced E+ Elite, featuring a proprietary riding algorithm to ensure a natural road feel, a direct challenge to the notion that e-bikes are purely utilitarian.

2. The Sustainability Gambit: Giant is moving to fundamentally redefine the industry’s value proposition. On its 50th anniversary, it unveiled its “Cycling for a Better Future” ESG strategy, built on three pillars: “Innovating a Clean Future,” “Transforming for Circularity,” and “Mobilizing for DEI.”

The most concrete example of this is the Bicycling Alliance for Sustainability (BAS). This coalition, now 81 members strong, is Giant’s ambitious attempt to create a new industry standard. The results are tangible: 88% of BAS members completed GHG inventories in their first year. Giant itself has integrated 13 different eco-friendly, low-carbon materials into products like tires, saddles, and helmets. This isn’t just corporate responsibility; it’s a strategic move to create a competitive barrier through differentiation and prepare for stringent EU regulations.

3. Digital Transformation: Recognizing the shift in consumer behavior, Giant is aggressively investing in a seamless O+O (Online plus Offline) experience. This includes a new bicycle customization platform, an upgraded RideLife app, and enhanced dealer management tools. The goal is to create a direct, interactive relationship with the end-consumer, moving beyond traditional retail.

The Future Outlook: Betting on the Long-Term Megatrend

Giant’s leadership remains unequivocally optimistic in the long term. The report explicitly references the European Cyclists’ Federation (ECF) forecast that bicycle sales in Europe will grow from 22m units in 2020 to 30m by 2030, with e-bikes accounting for half of all sales.

The acquisition of the assets of Stages Cycling further signals Giant’s intent to dominate the entire cycling ecosystem, integrating indoor and outdoor solutions. This positions them to capture growth across both fitness and mobility segments.

The playbook is clear: use its unrivalled global supply chain for flexibility, continue the premiumization of its product portfolio to drive margins, and lead the charge on sustainability to define the next era of the industry. The pandemic boom may be over, but Giant is betting that the long-term trend towards cycling, for health, for transport, for the planet, is only just beginning. By navigating the short-term challenges with discipline and strategic clarity, Giant is positioning itself not just to recover, but to lead the next chapter of global cycling.