Table of Contents
Executive Summary
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- Overview
- The market
- Record post-recession growth in the tires market set to stabilize in the future
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- Figure 1: Total US retail sales and fan chart forecast of tires, at current prices, 2009-19
- Market drivers
- Market segmentation and retail channels
- A market made mostly of passenger tires
- Independent tire dealers continue to dominate, but value poised to rise
- The consumer
- Asian, Hispanic, and Black respondents considerably more likely than White respondents to have made a tire purchase within the last year
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- Figure 2: Time of last tire purchase, by race/Hispanic origin, September 2014
- Consideration and purchase concentrated among the top five brands
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- Figure 3: Brands of tires considered, September 2014 and brands of tires bought in last 12 months, April 2013-June 2014
- Independent tire discounters command the largest proportion of retail sales
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- Figure 4: Tires purchased at automotive retail stores, April 2013-June 2014
- Tire durability and comfort more important than most performance features
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- Figure 5: Important tire features, September 2014
- Millennials less concerned with tire maintenance, not convinced tires will perform as promised
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- Figure 6: Attitudes toward tires and shopping behaviors, by Age, September 2014
- What we think
Issues and Insights
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- Are tire manufacturers innovating in ways that matter?
- The issues
- The implications
- Can younger consumers be taught to pay more attention to their tires?
- The issues
- The implications
- What would it take to generate brand loyalty in the tires market?
- The issues
- The implications
Trend Applications
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- Trend: Prove It
- Trend: Return to the Experts
- Trend: Prepare for the Worst
Market Size and Forecast
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- Key points
- Post-recession pop in tire sales may flatten in the future
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- Figure 7: Total US retail sales of tires, at current prices, 2009-19
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- Figure 8: Total US retail sales of tires, at inflation-adjusted prices, 2009-19
- Fan chart forecast
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- Figure 9: Total US sales and fan chart forecast of the tires market, at current prices, 2009-19
Market Drivers
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- Key points
- Millennials and their parents are the key to the future of the tires market
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- Figure 10: Population by age, 2009-19
- Hispanic, Black, and Asian consumers all more likely to purchase tires
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- Figure 11: Population by race and Hispanic origin, 2009-19
- Macroeconomic trends favorable for more frequent, premium tire replacement
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- Figure 12: Consumer Sentiment Index and unemployment, 2000-14
- Figure 13: DPI rate of change versus previous month and year ago February 2007-July 2014
- Substantial income inequality means a majority of Americans spend less on and buy fewer tires
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- Figure 14: Household income distribution, US, 2013
- The number of Americans with driver’s licenses continues to increase…
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- Figure 15: Number of licensed drivers in the US, 2001-2011
- …but the number of miles driven remains nearly constant
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- Figure 16: Total annual miles driven, 2003-2013
- Average age of US vehicles continues to increase
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- Figure 17: Average age of passenger cars and light trucks, 2004-13
- The US is a net importer of tires, mostly from China, Japan, Korea, and Thailand
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- Figure 18: Balance of trade in tires, top five trading partners, 2009-114
Market Segmentation
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- Key points
- Passenger tires show a slight increase in share
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- Figure 19: Total US Retail sales of tires, by segment, at current prices, 2012 and 2014
- Post-recession boom in passenger tires segment, poised for moderate future growth
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- Figure 20: Total US Retail sales of passenger tires, at current prices, 2009-2019
- Figure 21: Total US Retail sales of passenger tires, at inflation-adjusted prices, 2009-2019
- Light trucks also enjoyed post-recession boom, but will not sustain growth
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- Figure 22: Total US Retail sales of light truck tires, at current prices, 2009-2019
- Figure 23: Total US Retail sales of light truck tires, at inflation adjusted prices, 2009-2019
Retail Channels
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- Key points
- Independents dominate, but auto dealerships are one of the fastest-growing channels
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- Figure 24: Total US retail sales of passenger and light truck tires, by channel, at current prices, 2012-14
- Value players lose share to dealerships and tire-owned stores, but are poised for a comeback
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- Figure 25: Total US retail sales of passenger and light truck tires, by channel, at current prices, 2009-14
- Figure 26: Market share of sales of passenger and light truck tires, by channel, 2009-14
Leading Companies
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- Many players in the market, but the top three control nearly half of all sales
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- Figure 27: Market share of sales of passenger and light truck tires, by channel, selected tire brands, 2009-14
- Goodyear
- Michelin
- Bridgestone Corporation
- Cooper Tires
- Yokohama
- Continental Tires
- Pirelli
Innovations and Innovators
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- Innovation is still possible, but manufacturers must go to extremes
- Goodyear Tow365 service and app
- Michelin delivers what consumers want – longer-lasting tires
- “My Firestone” gets consumers to consider tires on their mobile devices
- Pirelli fashion – PZero Moda Project
Marketing Strategies
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- Overview of the brand landscape
- Theme: Mostly performance promoted on TV
- Michelin promotes premium tire performance on TV
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- Figure 28: Michelin, Michelin premier all-season tire tv spot, March 2014
- Firestone breaks the performance mold; appeals to history
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- Figure 29: Firestone, Pick-up commercial tv spot, April 2014
- Theme: Racing endorsement as a proxy for performance
- Goodyear drives NASCAR
- Michelin Motorsports and Porsche Club Racing
- BF Goodrich goes off-road in Baja
- Theme: Functional or fun efforts for tire companies in social media
- Goodyear as an ambassador of good cheer
- Social identify solidifies Michelin’s long, proud history of driving safety
- #RollWithCooper Twitter promotional campaign
- #PirelliMySUV Instagram photo contest
- Theme: Dealerships and tire discounters see tire services as a way to drive repeat business
- Roll with Toyota tire event
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- Figure 30: Roll with Toyota mailer, October 2014
- Fall into Honda genuine service
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- Figure 31: Fall into Honda genuine service mailer, October 2014
- Tire Kingdom offers buy three get one free
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- Figure 32: Tire Kingdom buy 3 get one free e-mail, October 2014
Time of Last Tire Purchase
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- Key points
- Most consumers have purchased tires fairly recently
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- Figure 33: Time of last tire purchase, September 2014
- Men more likely to have replaced tires within the last year
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- Figure 34: Time of last tire purchase, by gender, September 2014
- Younger respondents (18-34) more likely to have replaced tires within the last year
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- Figure 35: Time of last tire purchase, by age, September 2014
- Highest-income consumers more likely to have replaced tires within the last year
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- Figure 36: Time of last tire purchase, by household income, September 2014
- Larger households likely means more vehicles, more frequent tire placement
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- Figure 37: Time of last tire purchase, by household size, September 2014
- City drivers more likely to have replaced tires in the past year
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- Figure 38: Time of last tire purchase, by area, September 2014
- Millennials more likely to have replaced tires within the last year
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- Figure 39: Time of last tire purchase, by Millennial parents, September 2014
- Type of vehicle has little effect on the cadence of tire replacement
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- Figure 40: Time of last tire purchase, by type of vehicles owned, September 2014
Intent to Purchase Tires
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- Key points
- Almost half of all respondents plan to purchase tires within the next year
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- Figure 41: Intent to purchase tires in next two years, September 2014
- Younger adults plan to replace their tires sooner
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- Figure 42: Intent to purchase tires in next two years, by age, September 2014
- Larger households more inclined to purchase tires sooner
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- Figure 43: Intent to purchase tires in next two years, by household size, September 2014
- Urban consumers plan for more frequent tire replacement
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- Figure 44: Intent to purchase tires in next two years, by area, September 2014
- Drivers of larger vehicles and performance vehicles believe they will replace tires sooner
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- Figure 45: Intent to purchase tires in next two years, by type of vehicles owned, September 2014
Actual Tire Purchases
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- Key points
- Most consumers replace all of their tires at once
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- Figure 46: Number of tires bought in last 12 months, by age, April 2013-June 2014
- SUV drivers are frequent tire replacers
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- Figure 47: Pickup trucks, sport utility vehicles, or vans, by age, April 2013-June 2014
- Higher-income respondents buy tires more frequently
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- Figure 48: Number of tires bought in last 12 months, by household income, April 2013-June 2014
- Figure 49: Pickup trucks, sport utility vehicles, or vans, by household income, April 2013-June 2014
- Most consumers purchase “regular” tires for their cars
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- Figure 50: Type of tires bought in last 12 months, by age, April 2013-June 2014
- Consumers spend just under $400 a year on tires
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- Figure 51: Total amount spent on tires in last 12 months, by age, April 2013-June 2014
- Higher-income consumers spend more per year on tires
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- Figure 52: Total amount spent on tires in last 12 months, by household income, April 2013-June 2014
- Discount Tire gets the most tire business
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- Figure 53: Tires purchased at automotive retail stores, by age, April 2013-June 2014
- Higher-income respondents prefer to purchase tires form car dealerships
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- Figure 54: Tires purchased at automotive retail stores, by household income, April 2013-June 2014
Who Will Purchase Tires?
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- Key points
- Most tire purchases are independent decisions
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- Figure 55: Who will purchase tires, September 2014
- Men more likely to make tire purchase decisions on their own
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- Figure 56: Who will purchase tires, by gender, September 2014
- Youngest respondents less likely to make tire purchase decisions on their own
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- Figure 57: Who will purchase tires, by age, September 2014
- Millennials slightly more likely to make tire purchase decisions on their own
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- Figure 58: Who will purchase tires, by Millennial parents, September 2014
Brands of Tires Considered and Purchased
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- Key points
- Brands of tires considered
- Brand consideration concentrated among the top five
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- Figure 59: Brands of tires considered, September 2014
- More women than men favor Michelin tires
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- Figure 60: Brands of tires considered, by gender, September 2014
- Goodyear more popular among older consumers
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- Figure 61: Brands of tires considered, by age, September 2014
- Middle-income consumers show more interest in BF Goodrich and Bridgestone group brands
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- Figure 62: Brands of tires considered, by household income, September 2014
- Urban respondents more willing to consider Japanese tire brands
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- Figure 63: Brands of tires considered, by area, September 2014
- SUV drivers want Goodyear, crossover drivers seek Michelin
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- Figure 64: Brands of tires considered, by type of vehicles owned, September 2014
- Brands of tires purchased
- Goodyear remains relevant, Michelin lags
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- Figure 65: Brands of tires bought in last 12 months, by age, April 2013-June 2014
- Higher-income consumers prefer Michelin to Goodyear
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- Figure 66: Brands of tires bought in last 12 months, by household income, April 2013-June 2014
Important Tire Features
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- Key points
- Tire performance is secondary to durability and comfort
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- Figure 67: Important tire features, September 2014
- Women show a greater interest in safety and value-oriented features
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- Figure 68: Important tire features, by gender, September 2014
- Older respondents have higher expectations for tire performance
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- Figure 69: Important tire features, by age, September 2014
- Lower-income tire indenters do not believe in tire durability claims
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- Figure 70: Important tire features, by household income, September 2014
- Millennials have lower expectations for their tires
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- Figure 71: Important tire features, by Millennial parents, September 2014
- Those considering a top-five tire brand demand more from their tires
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- Figure 72: Important tire features, by brands of tires considered, part 1,September 2014
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- Figure 73: Important tire features, by brands of tires considered, part 2, September 2014
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- Figure 74: Important tire features, by brands of tires considered, part 3, September 2014
Attitudes toward Tires and Shopping Behaviors
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- Key points
- Make it last, but don’t make me work
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- Figure 75: Attitudes toward tires and shopping behaviors, September 2014
- Men more brand loyal, but still not compliant
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- Figure 76: Attitudes toward tires and shopping behaviors, by gender, September 2014
- Younger consumers uninterested in tire maintenance
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- Figure 77: Attitudes toward tires and shopping behaviors, by age, September 2014
- Lower-income consumers less likely to maintain their tires
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- Figure 78: Attitudes toward tires and shopping behaviors, by household income, September 2014
- To avoid getting stuck, rural respondents are more fastidious with tire maintenance and care
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- Figure 79: Attitudes toward tires and shopping behaviors, by area, September 2014
- Millennials are not careful with their tires
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- Figure 80: Attitudes toward tires and shopping behaviors, by Millennial parents, September 2014
Race and Hispanic Origin
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- Key points
- Black, Asian, and Hispanic consumers more likely to have purchased, plan to purchase tires within a year
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- Figure 81: Time of last tire purchase, by race/Hispanic origin, September 2014
- Black, Asian, and Hispanic consumers more likely to purchase tires within the next six months
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- Figure 82: Intent to purchase tires in next two years, by race/Hispanic origin, September 2014
- On average, Hispanic respondents purchase the highest number of tires
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- Figure 83: Number of tires bought in last 12 months, by race/Hispanic origin, April 2013-June 2014
- Asian consumers want only regular tires
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- Figure 84: Type of tires bought in last 12 months, by race/Hispanic origin, April 2013-June 2014
- Black, Asian, and Hispanic respondents spend less on tires than Whites
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- Figure 85: Total amount spent on tires in last 12 months, by race/Hispanic origin, April 2013-June 2014
- Asian tire replacers are loyal to dealerships, Blacks go to Walmart
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- Figure 86: Tires purchased at automotive retail stores, by race/Hispanic origin, April 2013-June 2014
- More Black consumers purchase tires without help
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- Figure 87: Who will purchase tires, by race/Hispanic origin, September 2014
- Lower purchase intent for major tire brands among Hispanics
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- Figure 88: Brands of tires considered, by race/Hispanic origin, September 2014
- Hispanics, Blacks, and Asians more likely to purchase major tire brands
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- Figure 89: Brands of tires bought in last 12 months, by race/Hispanic origin, April 2013-June 2014
- Blacks more concerned about performance and comfort, Hispanics less concerned about most features
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- Figure 90: Important tire features, by race/Hispanic origin, September 2014
- Non-White consumers more brand loyal, Hispanic consumers have lower expectations for their tires
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- Figure 91: Attitudes toward tires and shopping behaviors, by race/Hispanic origin, September 2014
Appendix – Other Useful Consumer Tables
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- Household ownership of vehicles
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- Figure 92: Number of vehicles in household, September 2014
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- Figure 93: Number of vehicles in household, by age, September 2014
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- Figure 94: Number of vehicles in household, by household income, September 2014
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- Figure 95: Number of vehicles in household, by race/Hispanic origin, September 2014
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- Figure 96: Number of vehicles in household, by marital/relationship status, September 2014
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- Figure 97: Number of vehicles in household, by household size, September 2014
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- Figure 98: Number of vehicles in household, by employment, September 2014
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- Figure 99: Number of vehicles in household, by area, September 2014
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- Figure 100: Number of vehicles in household, by Millennial parents, September 2014
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- Figure 101: Number of vehicles in household, by Gen X parents, September 2014
- Type of vehicle owned/leased
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- Figure 102: Type of vehicles owned, by gender, September 2014
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- Figure 103: Type of vehicles owned, by age, September 2014
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- Figure 104: Type of vehicles owned, by household income, September 2014
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- Figure 105: Type of vehicles owned, by race/Hispanic origin, September 2014
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- Figure 106: Type of vehicles owned, by marital/relationship status, September 2014
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- Figure 107: Type of vehicles owned, by household size, September 2014
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- Figure 108: Type of vehicles owned, by employment, September 2014
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- Figure 109: Type of vehicles owned, by area, September 2014
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- Figure 110: Type of vehicles owned, by Millennial parents, September 2014
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- Figure 111: Type of vehicles owned, by Gen X parents, September 2014
- New, used, or CPO
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- Figure 112: New, used, or CPO, September 2014
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- Figure 113: New, used, or CPO, by gender, September 2014
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- Figure 114: New, used, or CPO, by age, September 2014
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- Figure 115: New, used, or CPO, by household income, September 2014
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- Figure 116: New, used, or CPO, by race/Hispanic origin, September 2014
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- Figure 117: New, used, or CPO, by marital/relationship status, September 2014
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- Figure 118: New, used, or CPO, by household size, September 2014
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- Figure 119: New, used, or CPO, by employment, September 2014
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- Figure 120: New, used, or CPO, by area, September 2014
- Time of last tire purchase
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- Figure 121: Time of last tire purchase, by marital/relationship status, September 2014
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- Figure 122: Time of last tire purchase, by employment, September 2014
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- Figure 123: Time of last tire purchase, by Gen X parents, September 2014
- Intent to purchase tires
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- Figure 124: Intent to purchase tires in next two years, by gender, September 2014
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- Figure 125: Intent to purchase tires in next two years, by marital/relationship status, September 2014
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- Figure 126: Intent to purchase tires in next two years, by new, used, or CPO, September 2014
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- Figure 127: Intent to purchase tires in next two years, by household income, September 2014
- Actual tire purchases
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- Figure 128: Tires purchased at automotive retail stores, by gender, April 2013-June 2014
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- Figure 129: Pickup trucks, sport utility vehicles, or vans, by race/Hispanic origin, April 2013-June 2014
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- Figure 130: Type of tires bought in last 12 months, by household income, April 2013-June 2014
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- Figure 131: Pickup trucks, sport utility vehicles, or vans, by age, April 2013-June 2014
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- Figure 132: Pickup trucks, sport utility vehicles, or vans, by household income, April 2013-June 2014
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- Figure 133: Pickup trucks, sport utility vehicles, or vans, by race/Hispanic origin, April 2013-June 2014
- Who will purchase tires?
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- Figure 134: Who will purchase tires, by household size, September 2014
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- Figure 135: Who will purchase tires, by marital/relationship status, September 2014
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- Figure 136: Who will purchase tires, by employment, September 2014
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- Figure 137: Who will purchase tires, by area, September 2014
- Brands of tires considered
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- Figure 138: Brands of tires considered, by household size, September 2014
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- Figure 139: Brands of tires considered, by Millennial parents, September 2014
- Important tire features
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- Figure 140: Important tire features, by household size, September 2014
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- Figure 141: Important tire features, by area, September 2014
- Attitudes toward tires and shopping behaviors
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- Figure 142: Attitudes toward tires and shopping behaviors, by household size, September 2014
Appendix – Trade Associations
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