01 Favorable Regulations Promoting Sustainable Materials as Substitute Materials for Conventional Virgin Rubber Since conventional virgin rubber is not degradable, end-of-life tire recycling has become a major global issue. The European Union, Asia Pacific, the Middle East, and North American countries have started implementing schemes to promote tire recycling to produce reclaimed rubber from tire waste as a substitute for conventional rubber.Additionally, the extended responsibility program initiated by European countries such as the Netherlands, Sweden, and Germany mandates tire manufacturers to manage the entire product life cycle of the tires produced. This is expected to drive the rubber recycling industry, contributing to the growth of the market. Compared to conventional virgin rubber, the good weather resistance and resilience offered by reclaimed rubber are expected to fuel the demand for reclaimed rubber as a substitute material.
02 Shortage of Natural Rubber in the Automotive Industry The global automotive industry struggled with the COVID-19 pandemic-induced plant shutdowns and the disruption of shipping lines due to border closures. This resulted in a shortage of natural rubber, an essential material used in components under the automotive hood and tires. According to the Association of Natural Rubber Producing Countries, China was the largest user of natural rubber in 2020, followed by India, the European Union, and the U.S. The COVID-19 pandemic resulted in a rubber shortage.Additionally, automobile manufacturers such as Stellantis N.V., Ford Motor Company, General Motors, and the France-based tire manufacturer MICHELIN witnessed an acute shortage of rubber, which impacted their overall production in 2020. Since reclaimed rubber is produced from waste tire scraps, uncertain situations such as the COVID-19 pandemic, which leads to disturbances in the supply chain and halts trade due to the closing of boundaries, are expected to drive the market by propelling countries to concentrate on deriving raw material from waste tires and reduce dependency on raw material import over the forecast period.
01 Restrictions on Import of Tire Waste Scrap Asia is the hotspot for the majority of reclaimed rubber manufacturing. India, Vietnam, China, and other Asian countries receive the most scrap rubber. Rubber reclamation reduces tire waste, but tire trash cannot be recycled. This has led many Asian governments to control waste tire imports for pyrolysis. In addition, the Indian National Green Tribunal (NGT) ordered the Central Pollution Control Board (CPCB) to limit waste tire imports in October 2019, which includes banning extremely polluting pyrolysis companies from using end-of-life tires (ELTs). This restricted the demand for reclaimed rubber since tire scrap is the raw material for reclaimed rubber production, thereby hindering market growth.
01 Restriction on Landfills by Governing Bodies Tires are a major problem in many countries because they do not decompose and last a long time in landfills. The negative impact of dumping tire waste in landfills has driven many countries to implement strict regulations to conserve the environment. In September 2020, a new solid waste law was enacted, emphasizing the solid waste handling principles of reduction, recycling, and harmlessness. It also strengthens the supervision and management responsibilities of the government and its relevant departments to achieve "zero" solid waste imports and integrate solid waste management into the current environmental programs.As of 2030, the European Union Directive (EU) 2018/850 restricts the landfilling of all waste appropriate for recycling, other material, or energy recovery. This has prompted the European tire industry to implement the circular economy program, which focuses on sustainably employing raw materials, reducing waste, and replacing materials that may challenge end-of-life tire recycling. Therefore, the regulations imposed on dumping end-of-life tires and tire scrap in landfills are expected to create an opportunity for rubber recycling and reclaimed rubber over the forecast period.
May 2026 GRP Limited advanced a phased expansion of its reclaimed rubber capacity using new processing technologies and broadened its product offerings. The company's integrated recycling strategy also includes crumb rubber, tyre pyrolysis oil, and recovered carbon black facilities.
October 2025 Bridgestone held a groundbreaking ceremony for a pilot demonstration plant in Japan focused on precise pyrolysis of end-of-life tyres. The facility will support tire-to-tire recycling by recovering raw materials for reuse in new tyre production.