Table of Contents
Executive Summary
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- What tire brands and retailers want to know
- Consumers need to be educated about their tires
- Where tire brands and retailers can succeed
- Consumers don’t buy tires, they buy peace of mind
The Market – What You Need to Know
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- Continuously declining DPI likely to affect tire market
- Michelin, Total Goodyear and Total Bridgestone dominate tire sales
- Steady rubber prices to provide boon to consumers
Market Size and Forecast
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- US tire market is healthy, for now
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- Figure 1: Total US sales and fan chart forecast of market, at current prices, 2011-21
- Figure 2: Total US sales and forecast of replacement tires, at current prices, 2014-24
Market Breakdown
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- US total sales by brand share
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- Figure 3: US manufacturers’ unit shipments of replacement passenger and light truck tires, by manufacturer brand share, 2018
Market Factors
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- Declining DPI poses threat to tire market
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- Figure 4: Consumer attitudes toward their tire retailer, September 2019
- Consumer confidence continues to wane
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- Figure 5: Consumer attitudes toward their tire retailer, September 2019
- The average price per pound of rubber remains steady
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- Figure 6: Global price of rubber, US cents per pound, annual, not seasonally adjusted, September 2019
Key Players – What You Need to Know
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- Puncture-proof tires
- Consumers aren’t likely to invest in seasonal tires
- The next generation of tires won’t let consumers ignore them
What’s Happening?
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- Domino’s delivers pothole solution to pizza lovers in need
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- Figure 7: Paving for Pizza 50 states completion map, October 2019
- GM and Michelin team up to produce puncture-proof tires
What’s Struggling?
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- Consumers view seasonal tires as a waste of money
What’s Next?
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- SEMA prepares for 3D printing and the future of automotive
- How will talking tires affect the in-vehicle experience?
The Consumer – What You Need to Know
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- Trust is key when selecting a tire retailer
- Tire brand awareness increases with age
- Parents are more likely to invest in run-flat tires
- Not all tire brands are equal in the eyes of consumers
- Consumers are open to stretching their budget for quality tires
Most Recent Tire Purchase
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- More than two thirds of tire purchases were made within the past three years
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- Figure 8: Most recent tire purchase, September 2019
- Most consumers don’t know what tire brand is on their most driven vehicle
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- Figure 9: Knowledge of tire brand ownership, September 2019
- Tire ownership awareness increases with age
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- Figure 10: Knowledge of tire brand ownership, by generation, September 2019
- Consumers are still buying tires in sets of four
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- Figure 11: Number of tires purchased, September 2019
Tire Purchase Location
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- There isn’t a monopoly on tire purchase locations
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- Figure 12: Recent tire purchase location, September 2019
- Young male consumers are more likely to buy tires online
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- Figure 13: Recent tire purchase location, by gender and age, September 2019
- Gender doesn’t affect tire purchase location
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- Figure 14: Recent tire purchase location, by gender, September 2019
- Millennials will shop at a new tire store if pricing is competitive
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- Figure 15: Willingness of tire purchase from a new retailer, by generation, September 2019
Reasons for Tire Purchase
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- Trust is a key factor when choosing where to purchase tires
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- Figure 16: Consumer attitudes toward their tire retailer, September 2019
- Warehouse club shoppers are more likely to research brands online
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- Figure 17: Tire purchase research frequency, by location, September 2019
- Millennials prefer brands that their mechanic recommends
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- Figure 18: Preferred mechanic recommendation, by generation, September 2019
- Price incentives have the potential to sway consumer purchase decisions…
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- Figure 19: Price incentives as a purchase motivator, by generation, September 2019
- …especially when it comes to parents on a budget
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- Figure 20: Price incentives as a purchase motivator, by parental status, September 2019
Tire Price Expectations
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- Consumer threshold for tire prices is higher than you’d think
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- Figure 21: Tires price sensitivity – Optimal price, August 2019
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- Figure 22: Tires price sensitivity – Threshold prices, August 2019
Attitudes toward Tires
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- Generally speaking, consumers don’t think all tires are equal…
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- Figure 23: Perception of tire brands being equal, by generation, September 2019
- Young consumers are open to trying new tire brands
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- Figure 24: Willingness to try new tire brands, by generation, September 2019
- Parents see a greater benefit to having run-flat tires
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- Figure 25: Opinion of run-flat tires, by parental status, September 2019
- Tires aren’t an issue until they become an issue
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- Figure 26: Tire top of mind awareness, by retailer, September 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
Appendix – The Consumer
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- Repeat tire brand purchases depends on consumer/retailer relationship
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- Figure 27: Repeat purchase factors, September 2019
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