Table of Contents
Scope and Themes
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- What you need to know
- Definition:
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The market
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- Figure 1: Fan chart forecast of total retail sales of passenger tires in the U.S. and Canada, at current prices, 2007-17
- Market factors
- Miles driven critical to consumer replacement tire demand
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- Figure 2: Miles driven on U.S. roads, all vehicles, 2001-12
- Aging vehicle fleet creates opportunity for consumer replacement tire market
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- Figure 3: Average age of cars, light trucks, and total light vehicles, 1995-2011
- Higher taxes may impede short-term growth of consumer spending
- Low consumer confidence causes purchase deferment
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- Figure 4: Consumer confidence vs. consumer replacement tire sales, 2007-12
- Key players
- Three tire makers control more than two-thirds of the market
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- Figure 5: Share of value sales of new tire sales, including passenger tires, light-truck tires, truck tires, farm tires, and off-the-road (OTR) tires, in the U.S. and Canada, by manufacturer, 2011 and 2012
- Tire retailing dominated by independent tire dealers
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- Figure 6: U.S. share of value sales of passenger tires, by retail channel, 2012
- The consumer
- Two years an average cycle for new tire purchase
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- Figure 7: When tires and rims were last purchased, December 2012
- Nearly two-thirds of tire buyers purchased four tires last year
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- Figure 8: Number of new passenger car and light truck tires purchased in the last year, August 2011-August 2012
- Millennials more likely to buy major name brands
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- Figure 9: Tire brand bought in past year, Millennials vs. non-Millennials, December 2012
- Low-rolling resistant and run-flat tires valued, but not by all
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- Figure 10: Tire buying habits and sentiments, by gender, December 2012
- What we think
Issues in the Market
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- How can tire makers cope with aging Baby Boomers and apathetic Millennials?
- How will consumers, and the tire industry, react to the expiration of U.S. sanctioned tariffs against Chinese tires?
Insights and Opportunities
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- Warmer winters creates opportunity for safety messaging and tire rentals
- Tire makers need to simplify product branding through tiered product menus
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- Figure 11: Intel Processor configurator, February 2013
Trend Applications
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- Trend: Green and Lean
- Trend: Return to the Experts
- Mintel Futures: Brand Intervention
Market Size and Forecast
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- Key points
- Consumer replacement tire sales decline 1% in 2012
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- Figure 12: Total U.S. retail sales of passenger and light truck tires, at current prices, 2007-17
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- Figure 13: Total U.S. retail sales of passenger and light truck tires, at inflation-adjusted prices, 2007-17
- Fan chart forecast
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- Figure 14: Fan chart forecast of total retail sales of passenger tires in the United States and Canada, at current prices, 2007-17
Market Segmentation
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- Key points
- Passenger tires
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- Figure 15: Total U.S. retail sales of passenger tires, at current prices, 2007-17
- Figure 16: Total U.S. retail sales of passenger tires, at inflation-adjusted prices, 2007-17
- Light truck tires
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- Figure 17: Total U.S. retail sales of light truck tires, 2007-17
- Figure 18: Total U.S. retail sales of light truck tires, at inflation-adjusted prices, 2007-17
Market Drivers
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- Key points
- Aging U.S. vehicle fleet creates opportunity for replacement tire manufacturers
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- Figure 19: Average age of cars, light trucks and total light vehicles in the U.S., 2000-11*
- American drivers continue to drive fewer miles than peak period, weakening consumer demand
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- Figure 20: Miles driven on U.S. roads, all vehicles, 2001-12
- Popular vehicle introductions influence popularity of specific tire sizes
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- Figure 21: Top 15 bestselling cars, 2011-12
- New car sales positively impact overall tire sales, has long term positive effect on replacement tire market
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- Figure 22: New car sales vs. original equipment tire sales, 2007-12
- Higher taxes may impede short-term growth of consumer spending
- Low consumer confidence causes purchase deferment
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- Figure 23: Consumer confidence vs. consumer replacement tire sales, 2007-12
Retail Channels
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- Key points
- Retailing overview
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- Figure 24: U.S. sales of passenger tires, by retail channel, 2007-12
- Figure 25: Indexed growth of U.S. sales of passenger tires, by retail channel, 2007-12
- Figure 26: U.S. share of sales of passenger tires, by retail channel, 2007-12
- Retailer profiles
- TBC Corporation
- Discount Tire Co. Inc.
- Walmart Stores, Inc.
- Sears Automotive
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- Figure 27: Sears RoadHandler™ Tires, December 2012
- Costco Wholesale Corporation
- Sam's Club
- Firestone Complete Auto Care
- Goodyear Tire & Service
- Auto dealerships
- Pep Boys
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- Figure 28: Pep Boys tire buying guide, 2012
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- Figure 29: Pep Boys sales break down, 2010-12
- TireRack.com
Leading Companies
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- Key points
- Company overview
- Three tire makers control over two thirds of the U.S./Canadian market
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- Figure 30: Value sales of new tire sales, including passenger tires, light truck tires, truck tires, farm tires, and OTR tires, in the U.S. and Canada, by manufacturer, 2011 and 2012
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- Figure 31: Unit sales of U.S. replacement passenger and truck tires, by manufacturer brand, 2012
- Goodyear and Michelin continue to dominate HP/UHP sales
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- Figure 32: Market share of HP/UHP tires, by manufacturer, 2012
- Company profiles
- Bridgestone Americas, Inc.
- Company facts
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- Figure 33: Bridgestone Firestone annual sales in the U.S. and Canada for passenger tires, light truck tires, truck tires, farm tires, and OTR tires, at current prices, 2006-12
- Goodyear Tire and Rubber Company
- Company facts
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- Figure 34: Goodyear annual sales in the U.S. and Canada for passenger tires, light truck tires, truck tires, farm tires, and OTR tires, at current prices, 2006-12
- Michelin North America Inc.
- Michelin consolidates regular passenger tire portfolio into “Defender” brand
- Company facts
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- Figure 35: Michelin annual sales in the U.S. and Canada for passenger tires, light truck tires, truck tires, farm tires, and OTR tires, at current prices, 2006-12
- Cooper Tire & Rubber Co.
- Company facts
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- Figure 36: Cooper annual sales in the U.S. and Canada for passenger tires, light truck tires, truck tires, farm tires, and OTR tires, at current prices, 2006-12
- Continental Tire the Americas, LLC
- Company facts
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- Figure 37: Continental annual sales in the U.S. and Canada for passenger tires, light truck tires, truck tires, farm tires, and OTR tires, at current prices, 2006-12
Innovations and Innovators
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- Michelin introduces super long-lasting passenger tire; 90,000 miles under warranty
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- Figure 38: Michelin Defender, April 2012
- Nonpneumatic (airless) tires finally go on sale, could eventually reshape the tire industry
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- Figure 39: Michelin X-Tweel SSL, October 2012
Marketing Strategies
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- Overview of the brand landscape
- Strategy: Direct mail engages, informs, and carries offers
- Mr. Tire’s origami-style approach
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- Figure 40: Mr. Tire Auto Service Centers, sales/service promotions, direct mailer, January 2013
- Education to drive sales
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- Figure 41: Mr. Tire Auto Service Center, Scheduling maintenance, direct mailer, February 2013
- Strategy: Play on motorsports expertise
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- Figure 42: Goodyear “demanding customers” TV ad, February 2013
- Strategy: Sears leverages brand familiarity with trustworthiness
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- Figure 43: Sears Auto Center “This is the exception to the rule” TV ad, September 2012
- Strategy: Tires are part of a smart lifestyle and being a savvy consumer
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- Figure 44: Cooper Tires “Rolling Tire Portrait” TV ad, April 2012
- Proper tire care is the smart and easy thing
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- Figure 45: 2013 Nissan Altima “enough” TV ad, July 2012
- Michelin emphasis the “right tires” as most important attribute of safety and fuel efficiency
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- Figure 46: Michelin “Right tires change everything” TV ad, July 2012
Time of Last Tire and Rim Purchase
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- Key points
- Two years an average cycle for new tire purchase; four tires bought
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- Figure 47: When tires and rims were last purchased, December 2012
- Nearly two-thirds of tire buyers purchased a complete set of four tires
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- Figure 48: Number of new passenger car tires purchased in the last year, August 2011-August 2012
- Figure 49: Number of new pickup/SUV/van tires purchased in the last year, August 2011-August 2012
- The average tire purchase totaled nearly $370 in 2012
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- Figure 50: Total spend on new tires within the last year, by household income, August 2011-August 2012
- Women less likely than men to have ever personally purchased tires or rims
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- Figure 51: When tires and rims were last purchased, by gender, December 2012
- Household income not a significant determinant of frequency of purchase
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- Figure 52: When tires and rims were last purchased, by household income, December 2012
- Figure 53: Number of new passenger car tires purchased in the last year, by household income, August 2011-August 2012
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- Figure 54: Number of new pickup/SUV/van tires purchased in the last year, by household income, August 2011-August 2012
- Millennials most likely to purchase rims or tire and rim packages
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- Figure 55: When tires and rims were last purchased, by generation, December 2012
- Households with dependent children more likely to purchase tires
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- Figure 56: When tires and rims were last purchased, by marital status and presence of children in household, December 2012
Where Tires and Rims Are Purchased
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- Key points
- Grouping classification
- Discount Tire most popular tire store followed by Walmart
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- Figure 57: Automotive retail store shopped at for tires within the last year, August 2011-August 2012
- Men more inclined to shop at retailers that specialize in tires
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- Figure 58: Where last set of tires were purchased, by gender, December 2012
- Those in the South and West more likely to purchase from tire specialty stores
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- Figure 59: Where last set of tires were purchased, by region, December 2012
- Millennials least likely to shop at tire specialty stores
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- Figure 60: Where last set of tires were purchased, by generation, December 2012
- Rims and wheel packages most likely to be purchased at car dealers
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- Figure 61: Where last set of rims were purchased, by gender, December 2012
- Figure 62: Where the last tires and rims package were bought, by gender, December 2012
- Niche tire brands more popular at tire-centric stores
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- Figure 63: Where last set of tires were purchased, by tire brand ever bought, December 2012
- Figure 64: Where last set of tires were purchased, by tire brand ever bought, December 2012 (continued)
Brand Familiarity of Purchased Tires and Rims
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- Key points
- Dubious correlation between awareness and purchase
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- Figure 65: Purchase of and familiarity with tire brands, December 2012
- Asian and European tire brands bought more often by higher income households
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- Figure 66: Tire brand bought in past year, by household income, December 2012
- Millennials more likely to buy major name brands
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- Figure 67: Tire brand bought in past year, by generation, December 2012
- Major brand names purchased by wealthier households
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- Figure 68: Tire brands ever bought, by household income, December 2012
- Niche Asian and European brands more popular with Millennials
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- Figure 69: Tire brands ever bought, by generation, December 2012
- Smaller tire brands have poor awareness with women
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- Figure 70: Tire brand purchased or familiar with, by gender, December 2012
- Uniroyal, BFGoodrich suffer in brand awareness with Millennials
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- Figure 71: Tire brand purchased or familiar with, by generation, December 2012
- Michelin performance car and minivan owners; specialty tire brands to performance and light truck owners
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- Figure 72: Tire brand ever bought, by household ownership or leasing of vehicle(s), December 2012
Brand Familiarity with Original Equipment Tires
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- Key points
- One-third of respondents don’t know what brand of tires came with their car when purchased
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- Figure 73: Tire brand that came with household car, by household income, December 2012
- Millennials more attentive to brand of OE fitments
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- Figure 74: Tire brand that came with household car, by generation, December 2012
Effective Messaging For Promotional Tire Deals
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- Key points
- No single offer stands out, but 4 for the price of 3 preferred
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- Figure 75: Effective messaging for promotional tire deals, by gender, December 2012
- Stark differences in promotional interest by age and gender
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- Figure 76: Effective messaging for promotional tire deals, by gender and age, December 2012
Tire and Rim Buying Habits and Sentiments
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- Key points
- Grouping classification
- Warranties valued, but not by all
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- Figure 77: Tire and rim buying habits and sentiments, by gender, December 2012
- Nearly half of men aged 55+ said they would buy only longer lasting tires
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- Figure 78: Tire and rim buying habits and sentiments, by gender and age, December 2012
- Wealthier households most interested in tire innovations
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- Figure 79: Tire and rim buying habits and sentiments, by household income, December 2012
- Broad appeal for tire innovations among all generation groups
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- Figure 80: Tire and rim buying habits and sentiments, by generation, December 2012
- Unmarried women look for advice from tire dealers and retailers
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- Figure 81: Tire and rim buying habits and sentiments, by gender and marital status, December 2012
- Sentiments by last tire bought reflect some consumer confusion
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- Figure 82: Tire and rim buying habits and sentiments, by tire brand ever bought, December 2012 (part 1)
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- Figure 83: Tire and rim buying habits and sentiments, by tire brand ever bought, December 2012 (part 2)
Impact of Race and Hispanic Origin
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- Key points
- Hispanic, blacks most likely to have purchased tires in last year and likeliest to have purchased new rims
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- Figure 84: When tires and rims where last purchased, by race/Hispanic origin, December 2012
- Hispanic households buy the most car tires
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- Figure 85: Number of new car tires purchased in the last year, by race/Hispanic origin, August 2011-August 2012
- Figure 86: Number of new pickup/SUV/van tires purchased in the last year, by race/Hispanic origin, August 2011-August 2012
- Blacks and Hispanics spend the least on tires
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- Figure 87: Total spend on new tires within the last year, by race/Hispanic origin, August 2011-August 2012
- Blacks more likely to buy tires at big box retailers, blacks and Hispanics frequent auto parts store relatively more
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- Figure 88: Where last set of tires were purchased, by race/Hispanic origin, December 2012
- Blacks respond more favorably to “free installation with purchase”
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- Figure 89: Effective messaging for promotional tire deals, by race/Hispanic origin, December 2012
- Goodyear dominates, even more so among Hispanics
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- Figure 90: Tire brand bought in past year, by race/Hispanic origin, December 2012
Appendix – Other Useful Consumer Tables
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- Household vehicle ownership
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- Figure 91: Type of vehicle owned, by household ownership or leasing of vehicles, December 2012
- Time of last tire and rim purchase
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- Figure 92: When tires and rims where last purchased, by region, December 2012
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- Figure 93: Total spend on new car tires within the last year, by type of passenger car tires, August 2011-August 2012
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- Figure 94: Total spend on new pickup/SUV/van tires within the last year, by type of pickup/SUV/van tires, August 2011-August 2012
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- Figure 95: Number of new car tires purchased in the last year, by region, August 2011-August 2012
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- Figure 96: Automotive retail store shopped at within the last year, August 2011-August 2012
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- Figure 97: Automotive retail store shopped at for tires within the last year, August 2011-August 2012
- Where tires and rims are purchased
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- Figure 98: Where last set of tires were purchased, by household income, December 2012
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- Figure 99: Automotive retail store shopped at within the last year, August 2011-August 2012
- Brand familiarity of purchased tires
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- Figure 100: Tire brand bought prior to last year, by household income, December 2012
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- Figure 101: Tire brand bought prior to last year, by race/Hispanic origin, December 2012
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- Figure 102: Tire brand bought prior to last year, by generation, December 2012
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- Figure 103: Tire brand never bought but familiar with, by household income, December 2012
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- Figure 104: Tire brand never bought but familiar with, by race/Hispanic origin, December 2012
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- Figure 105: Tire brand never bought but familiar with, by generation, December 2012
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- Figure 106: Tire brand purchased or familiar with, by household income, December 2012
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- Figure 107: Tire brand purchased or familiar with, by gender and age, December 2012
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- Figure 108: Tire brand purchased or familiar with, by region, December 2012
- Brand familiarity with original equipment tires
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- Figure 109: Tire brand that came with household car, by type of vehicle owned , December 2012
- Effective messaging for promotional tire deals
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- Figure 110: Effective messaging for promotional tire deals, by generation, December 2012
- Tire and rim buying habits and sentiments
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- Figure 111: Tire and rim buying habits and sentiments, by education, December 2012
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- Figure 112: Tire and rim buying habits and sentiments, by tire brand that came with household car, December 2012
- Impact of race and Hispanic origin
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- Figure 113: Tire brand that came with household car, by race/Hispanic origin, December 2012
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- Figure 114: Tire brands ever bought, by race/Hispanic origin, December 2012
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- Figure 115: Tire brand purchased or familiar with, by race/Hispanic origin, December 2012
Appendix – Trade Associations
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