Tire Recycling Sector Shows Extraordinary Stable Growth

Goldstein

TM

Market Intelligence

AUGUST 2020

TIRE RECYCLING SECTOR SHOWS EXTRAORDINARY STABLE GROWTH Goldstein Market Intelligence

WRITTEN BY: Dennis Abraham Vice President Goldstein Market Intelligence

Goldstein

TM

Market Intelligence

Knowing the impact of waste tires on environment and cumbersome processes to dispose them of, developed countries have not only banned imports of waste tires, but also are aggressively pushing exports of such tires to developing countries such as China, India, Southeast Asian countries, Middle-East and some African nations.

Countries which are less serious about waste tires` impact are the preferred destination for disposal of waste tires.

Unorganized furniture market has its widespread impact on the preference of people buying the furniture. The furniture companies has to face stiff competition with these players majorly in the developing and under developed countries.

In the time of advancing technologies, furniture industry is bound to grow accordingly i.e. rise in online sales of furniture. But the physical presentation of furniture at the stores appeals the customers, which hampers the penetration of technologies.

CHALLENGES TO OVERCOME Environmentally compliant recycling of used tires and rubber products is one of the biggest global ecological challenges today.

In developed and underdeveloped regions, typically, disposal of waste tires nowadays is simply carried out by “dumping” them to the nearest "convenient" location or by disposing of in a landfill. ©2020 GOLDSTEIN MARKET INTELLIGENCE

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End-of-life tires (ELT) or waste tires are a chronic environmental issue in western countries and so now in developing countries. The only difference is that these countries have started tackling this issue recently, but not effectively as its western counterparts. As BRIC nations are riding on robust growth, more and more vehicles are hitting the roads, so are tires. In the last five fiscals (FY10 to FY15), the tire industry in these countries has grown at a CAGR of 12%. On the flip side, the impressive growth has brought in its wake more challenges to the environment.

Source: Goldstein Market Intelligence

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Market Intelligence

Country

Formation Volume , KT

Germany

550

2

U.K

450

France

Retreading (%)

Rubber Crumb (%)

38

18

15

54

9

18

6

425

51

10

13

6

2800

48

22

9

9

Japan

840

8

43

9

12

Russia

800

-

1

3

U.S.A

Land Fill (%)

96

Generation of Energy

Source: Goldstein Market Intelligence

The amount of recycled tires in these regions are about averagely 8-9% of the total. Considering, that the amount of used tires constantly increased, it causes an irreparable damage to the surrounding nature. For comparison, the level of recycling of used tires in Western Europe is 90% in the USA - 87%, Japan - 89%.

Government funding, with all its limitations and difficulties, does not contribute to the highly profitable projects. It is necessary to create a comprehensive public program for the collection, temporary storage, processing and market development.

Road construction facilities or companies are not ready to widely use crumb rubber in the process of road construction, due to the lack of special equipment and technical limitations of the existing technology, Moreover, there is also lack of effective system for cooperation with international partners – manufacturers and importers of tires and rubber waste processing companies

Š2020 GOLDSTEIN MARKET INTELLIGENCE

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Market Intelligence

UPCOMING MARKET OPPORTUNITIES

The tire recycling is growing and looking promising.

According to our research, major markets such as wirefree mulch continue to grow year after year. Other markets for crumb rubber and smaller sizing are also growing as the demand for secondary products and uses such as plastic blends, molded products, and industrial applications continue to grow Several areas for secondary markets are growing”.

“Markets such as pour in place, rubber/plastic blends, rubber modified asphalt and general industrial and construction products/fills, are all on the upswing. New uses for secondary rubber uses also are being developed every month.”

“Also there has been a lot of activity in pyrolysis in the past three to four years”. “If there are advancements in this technology this could be a disrupter to the industry.” Pyrolysis is a method used for recycling used tires whereby the tires – either whole or shredded – are subjected to heat in an oxygen-starved atmosphere.

The result is tires that are converted to oil, gas, and carbon char to be used as fuel.

Recyclers and environmentally-friendly agencies can use the success of tire recycling to push new and innovative recycling opportunities

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Once the claims of toxicity are more clearly debased, the industry will have a clear and strong path forward,”. “I also think more and more industries will find new and innovative ways to use recycled rubber

Global Tire Recycling Market Opportunity, by Regions North America 13%

Europe 16%

Latin America 18% APAC 38% Middle East & Africa 15%

Country

Source: Goldstein Market Intelligence

Formation Volume , KT

Land Fill (%)

Germany

550

2

U.K

450

54

France

425

51

2800

48

Japan

840

8

Russia

800

U.S.A

Fig: 5-2 A comparison of the energy content of tires, fossil fuels and other fuels

96

©2020 GOLDSTEIN MARKET INTELLIGENCE

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Market Intelligence

Global Tire Recycling Market Share (%), By Rubber Type Polychloroprene 12%

Ethylene-Propylenediene Monomer 13.4%

Styrene-Butadiene Rubber 32.5%

Natural Rubber (NR) 42.1%

Source: Goldstein Market Intelligence

The idea of tire recycling technology is quite straightforward: as soon as tires become worn-out and cannot be safely used on vehicles anymore, they go back to a tire dealer, who passes waste tires along to large collectors or recyclers. Estimates suggest that every year people and businesses dispose of some 250 billion tires and 1/5 are thrown away illegally. Therefore, it is necessary to draw more attention to the topic and let circular economy concept function properly. In particular, it is important to know about tire collection and recycling programs. One of the most common ways to recycle tires is ambient shredding and grinding into crumb rubber.

Š2020 GOLDSTEIN MARKET INTELLIGENCE

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Scan the QR code or click the link below for our study on future of Global Tire Recycling Industry. https://www.goldsteinresearch.com

About the author Dennis Abraham Ph.D, senior vice president at Goldstein Market Intelligence, leads GMI's syndicated health and wellness research. Before joining Goldstein Market Intelligence, Dennis held a variety of senior leadership positions in global and regional consulting roles covering consumer and retail insights across a broad range of healthcare categories. Dennis has been providing crosscategory strategic insights to healthcare brands for over 12 years on topics including digital disruption, ecommerce, and healthcare technology. Dennis holds a Ph.d from Havard University.

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About Goldstein Market Intelligence Goldstein Market Intelligence helping businesses to be successful at strategy and take informed decisions to grow the business in future. Goldstein Market Intelligence is one of the leading professional services firms, providing Intelligence Services, Consulting & Advisory and research related services to clients. We, at Goldstein Market Intelligence practice works side by side with chief executives and their teams to create effective strategies and secure alignment across the organisation. Š2020 GOLDSTEIN MARKET INTELLIGENCE

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