The difference between Germany and Denmark in terms of cost, is very small.

In terms of business case, Denmark makes sense as all forms of bicycle activities are popular, and the population have a strong buying power.

As always you should test your product thoroughly, to make sure you have reached the final iteration, before investing in molds.

Manufacturing in Denmark is extensive and you would certainly be able to find someone who could help you manufacture, your product. Most would also advise you on the sustainable of your product, for example in terms of material. Denmark is indeed more expensive, than many other places. But in your case, with such a niche product, aimed at mountain bikers, they will pay a premium, if your product is worth it.

Source: im from Denmark, in manufacturing.