Global Reclaimed Rubber Market Grows at a Staggering CAGR of 9.6%

Introduction

Reclaimed rubber is a product made from scrap rubber intended to replace or supplement virgin rubber in manufacturing rubber goods. Most reclaimed rubber is produced through the alkali process, which entails mixing crushed scrap rubber with a sodium hydroxide solution and softeners under pressure to decompose the fabric, eradicate free sulfur, and plasticize the rubber. The product is cleansed, dried, refined, strained, and occasionally compounded before commercialization. The acid method produces some reclaimed rubber, which differs from the alkali method because the ground first destroys the fabric refuse being digested with the sulfuric acid before the rubber is plasticized by steam under pressure.

Market Dynamics

Favorable Regulations Promoting Sustainable Materials as Substitute Materials for Conventional Virgin Rubber Drives the Global Market

Countries in the European Union, Asia Pacific, the Middle East, and North America have begun instituting initiatives to promote tire recycling to produce reclaimed rubber as an alternative to conventional rubber from waste tires. For instance, the California Recycling Tire Act of 1989 established the California Tire Recycling Management Fund to finance tire recycling efforts and the use of recycled tire rubber products.

Additionally, the extended responsibility program initiated by European nations, including the Netherlands, Sweden, and Germany, requires tire manufacturers to manage the entire product life cycle of the tires they manufacture. This is anticipated to fuel the rubber recycling industry and contribute to expanding the reclaimed rubber market. Compared to conventional virgin rubber, the superior weather resistance and resilience of reclaimed rubber are anticipated to increase the demand for reclaimed rubber as a substitute material.

Restriction on Landfills by Governing Bodies Creates Tremendous Opportunities

Numerous nations have enacted stringent regulations to protect the environment in response to the damaging impact of tire disposal in landfills. A new solid waste law was enacted in September 2020, emphasizing the solid waste management principles of reduction, recycling, and safety. It strengthens the government's oversight and management responsibilities to achieve "zero" solid waste imports and to integrate solid waste management into existing environmental programs.

Additionally, Directive (EU) 2018/850 of the European Union has placed strict limits on the disposal of recyclable, recoverable, and energy-recoverable waste beginning in 2030. This has prompted the European tire industry to implement the circular economy program, which focuses on sustainably employing raw materials, reducing waste, and substituting materials that could pose a challenge to end-of-life tire recycling. Therefore, the regulations governing the disposal of worn-out tires and tire debris in landfills will likely create opportunities for rubber recycling and reclaimed rubber over the forecast period.

Regional Analysis

North America is the most significant global reclaimed rubber market shareholder and is estimated to exhibit a CAGR of 10.3% during the forecast period. Due to significant demand from the automotive, aviation, construction, and electrical industries, North America is the largest importer of rubber tires and one of the largest importers of rubber overall. The North American automotive industry is influenced by the surging popularity of electric vehicles and the establishment of manufacturing bases by global automobile manufacturers in Mexico, which is anticipated to drive the market for rubber tires and influence the expansion of the reclaimed rubber market.

The global market is also driven by product launches by different market participants. For instance, in January 2020, Goodyear Tire & Rubber Corporation, an American tire manufacturer, and Rubber-Cal, a rubber flooring and mats manufacturer, will launch a new line of rubber flooring and mats. ReUz rubber flooring rolls and tiles are made from recycled Goodyear tires, which require less energy during production and can be colored readily, resulting in floors with appealing textures suitable for fitness facilities.

Europe is estimated to exhibit a CAGR of 10.02% over the forecast period. Several regional initiatives, such as the BlackCycle initiative, are expected to drive growth in the reclaimed rubber market in Europe during the forecast period. The BlackCycle project aims to develop and optimize a full value chain of reclaimed rubber from end-of-life feedstocks such as tire waste to secondary raw materials (SRM) for the creation of a new line of tires for trucks and passenger vehicles to be commercially sold on the European and international markets.

In addition, several European nations, including France, Denmark, Germany, and Austria, have had landfill restrictions for decades due to escalating environmental concerns. High landfill tipping fees, dumping tariffs, waste management costs, and landfill closure expenses have prompted Europeans to transition to recycled goods. This scenario encourages the European populace to acquire and recycle rubber scraps, positively affecting the expansion of the European market for reclaimed rubber.

Key Highlights

• The global reclaimed rubber market is estimated to grow at a CAGR of 9.6% during the forecast period (2023–2031).
• Based on product, the global reclaimed rubber market is bifurcated into whole tire reclaim rubber, butyl reclaim rubber, EPDM reclaim rubber, and others. The whole tire reclaim rubber segment dominates the global market and is estimated to exhibit a CAGR of 10.6% over the forecast period.
• Based on end-user, the global reclaimed rubber market is segmented by automotive and aircraft tires, retreading, belts and hoses, footwear, molded rubber goods, and others. The automotive and aircraft tires segment owns the highest market and is estimated to exhibit a CAGR of 10.3% during the forecast period.
• North America is the most significant global reclaimed rubber market shareholder and is estimated to exhibit a CAGR of 10.3% during the forecast period.

Competitive Players

Competitive Players

The key global reclaimed rubber market players are GRP Ltd., J. Allcock& Sons Ltd., Fishfa Rubbers Ltd., Rolex Reclaim Pvt. Ltd., HUXAR, Ecore International, Tianyu (Shandong) Rubber & Plastic Products Co., Ltd, SRI Impex Pvt. Ltd., High Tech Reclaim Pvt. Ltd., and others.

Recent Developments

Market News

• In April 2023,Ecore International, the largest recycler of reclaimed tire rubber in North America, acquired the industry-leading tire recycling management company 360 Tire Recycling Group. This strategic alliance strengthens Ecore's position in collecting tires and buffings while facilitating the acquisition of raw materials for the company's innovative flooring and surfacing products.
• In September 2022,Ecore International, a rubber recycling company based in Lancaster, Pennsylvania, announced plans to invest USD 25.5 million to establish a manufacturing and recycling facility in Ozark, Alabama, to manufacture flooring and surfacing products from reclaimed rubber from used vehicle tires.

Segmentation

Global Reclaimed Rubber Market: Segmentation

By Product

• Whole Tire Reclaim Rubber
• Butyl Reclaim Rubber
• EPDM Reclaim Rubber
• Others

By End-User

• Automotive and Aircraft Tires
• Retreading
• Belts and Hoses
• Footwear
• Molded Rubber Goods
• Others

By Regions

• North America
• Europe
• Asia-Pacific
• Central and South America
• The Middle East and Africa