New report examines the future outlook for raw materials used in tire production

The Future of Tire Raw Materials to 2021 breaks down the impact of vehicle and tire market sales on the raw material industry.

Global tire materials supply is estimated to rise at a CAGR of 3.1% to reach approximately 47 million tonnes by 2021 according to the latest exclusive data from Smithers Rapra.

This increase will continue despite the predicted slowing of the world economy and fluctuations in material prices according to the report The Future of Tire Raw Materials to 2021.

In 2014, the tire industry consumed almost 40 million tons of materials. Purchasing these materials accounts for about 30% of a tire company’s sales, and Smithers Rapra estimates the materials input at $70 billion (€65 billion) globally for 2014.

Tires are complex products requiring a large number of individual materials – estimated at well over 100. These materials are well established and demand for them moves closely in line with tire output. Growth in the total tire materials market depends on the number of vehicles sold, the number of tires sold and the number of miles driven, which itself is dependent on fuel prices and economic activity.

The next few years will be challenging ones for tire materials suppliers due to several developing trends that Smithers Rapra details in its Future of Tire Materials to 2021 report. The first trend is economies in emerging markets. Due to slower-than-expected expansion in the Chinese and South Asian markets, estimates of tire industry growth are being significantly scaled back. As a result, new capacity coming on stream will take longer to reach economic utilization levels and investment plans may be delayed, especially with OEM and premium tires.

The second trend discusses materials availability and cost. The choice of rubber, especially natural rubber (NR) versus synthetic rubber (SR), such as stirene butadiene rubber (SBR), is examined in detail in Smithers Rapra's new report. Finally, the third trend is tire composition trends. The move toward lighter weight tires, using more sustainable ingredients and reclaiming materials for production from end-of-life tires are reducing materials demand.

The trends highlighted in this article are analyzed in depth, along with comprehensive market data in the full Smithers Rapra report available at

Return to Innovate Today News >