- Contents
- *Scope and Themes
- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
What you need to know
Between 2009 and 2014, the US retail tires market added a record $9.01 billion in sales, or a 42% increase over the period. This remarkable growth was driven mostly by pent-up, recovery-induced demand, rising material costs (ie rubber) causing an increase in the retail sales price of tires, and different purchasing patterns for tires among Millennials, some of whom entered the automobile market on their own during this period.
Between 2014 and 2019, Mintel estimates that sales will increase by $2.59 billion, or 8%, as the market will be free of the exogenous shocks that spurred growth over the last five years. However, the market is poised for even more rapid growth if manufacturers, marketers, and retailers can find new ways to motivate consumers to think about their tires. Differentiated brand messaging, more consumer education on the importance of tire maintenance and choosing the right tire for one’s vehicle to begin with, and better distribution of tire brands in independent retailers throughout the country can help individual brands outperform the market in the years to come.
This report builds on the analysis presented in Mintel’s Tires and Rims – US, March 2013, Tires – US, December 2011, Tires – US, July 2008, and Tires – US, November 2005.
Definition
For the purpose of this report, Mintel uses the following definitions:
As defined by this report, the replacement tire market are those sold for passenger cars and light trucks, including all subcompact, compact, midsized, or full-sized sedans, hatchbacks, or convertibles; compact, midsized, or full-sized truck-based SUVs; compact, midsized, or full-sized car-based crossovers; minivans or MPVs; compact, midsized, or full-sized pickup trucks or vans; any type of hybrid electric, electric, or alternatively fueled vehicle; any type of luxury vehicle; any type of classic car; or any variation above, so long as it’s for noncommercial use.
This report excludes the following:
Rims and wheels
Used and retreaded tires
Tires sold for public service vehicles, motorcycles, bicycles, and nontravel-related vehicles including race cars, go-carts, buses, planes, trailers, race cars, golf carts, commercial hauling trucks and vans, and building construction vehicles.
Value figures throughout this report are at rsp (retail selling prices) excluding sales tax unless otherwise stated.
Sales data
Market Size and Forecast: historical estimates based on Modern Tire Dealer except 2014 estimate, which is based on Modern Tire Dealer and Bureau of Economic Analysis; forecast developed by Mintel
Segment Performance: historical estimates based on Modern Tire Dealer except 2014 estimate, which is based on Modern Tire Dealer and Bureau of Economic Analysis; forecast developed by Mintel
Retail Channels: historical estimates based on Modern Tire Dealer except 2014 estimates, which are based on Modern Tire Dealer and Bureau of Economic Analysis
Leading Companies and Market Share: historical estimates based on Modern Tire Dealer. Company descriptions based on review of investor materials and published company information.
Consumer survey data
For the purposes of this report, Mintel commissioned exclusive consumer research through Lightspeed GMI to explore consumer attitudes toward and shopping behaviors at warehouse clubs. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted August 28– September 15, 2014, among a sample of 2,000 adults aged 18+ with access to the internet.
Mintel selects survey respondents so that they are proportionally balanced to the entire US adult population based on the key demographics of gender, age, household income, and region. Mintel also slightly oversamples, relative to the population, respondents that are Hispanic or Black to ensure an adequate representation of these groups in the survey results. Please note that Mintel surveys are conducted online and in English only. Hispanics who are not online and/or do not speak English are not included in the survey results.
Mintel has also analyzed data from Experian Marketing Services, using the Simmons National Consumer Study (NCS) and the Simmons National Hispanic Consumer Study (NHCS).
The Experian Marketing Services, Simmons NCS/NHCS was carried out during Spring 2014 and the results are based on the sample of 24,073 adults aged 18+, with results weighted to represent the US adult population.
While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (White, Black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race.
Abbreviations
The following is a list of abbreviations used in this report:
| COTA | Circuit of the Americas |
| DPI | Disposable personal income |
| CPI | Consumer Price Index |
| GPS | Global positioning system |
| NASCAR | National Association for Stock Car Auto Racing |
| RFID | Radio-frequency Identification |
| rsp | Retail selling price |
| SUV | Sport utility vehicle |
Terms
Generations are discussed within this report, and they are defined as:
| World War II/Swing generation | Members of the WWII Generation were born in 1932 or before and are aged 82 or older in 2014. Members of the Swing Generation were born between 1933 and 1945 and are aged 69-81 in 2014. |
| Baby Boomers | The generation born between 1946 and 1964. In 2014, Baby Boomers are between the ages of 50 and 68. |
| Generation X | The generation born between 1965 and 1976. In 2014, Gen Xers are between the ages of 38 and 49. |
| Millennials* | The generation born between 1977 and 1994. In 2014, Millennials are between the ages of 20 and 37. |
| iGeneration | The generation born between 1995 and 2007. In 2014, iGens are between the ages of 7 and 19. |
| Emerging generation | The newest generation began in 2008 as the annual number of births declined sharply with the recession. In 2014 members of this as-yet unnamed generation are younger than age 7. |
* Also known as Generation Y or Echo Boomers
To provide an inflation-adjusted price value for markets, Mintel uses the CPI to deflate current prices. The CPI is defined as follows:
| CPI | The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. The CPI and its components are typically used to adjust other economic series for price changes and to translate these series into inflation-free dollars. Examples of series adjusted by the CPI include retail sales, hourly and weekly earnings, and components of the national income and product accounts. In addition, and in Mintel reports, the CPI is used as a deflator of the value of the consumer’s dollar to find its purchasing power. The purchasing power of the consumer’s dollar measures the change in the value to the consumer of goods and services that a dollar will buy at different dates. The CPI is generally the best measure for adjusting payments to consumers when the intent is to allow consumers to purchase, at today’s prices, a market basket of goods and services equivalent to one that they could purchase in an earlier period. It is also the best measure to use to translate retail sales into real or inflation-free dollars. Based on Bureau of Labor Statistics definition. |
