Tyre Prices Increased 34 per cent Since 1999

(Akron/Tire Review) The $15 billion US replacement tyre market has grown 34 per cent since 1999, according to a new study from Research and Markets. Volume sales benefit from an automobile fleet that is larger and older than any in US history. However, the real growth in the market increased in what consumers spend per tyre, with average price per tyre rising from $59 in 1999 to $76 in 2005.

According to Research and Markets, the increase in prices stems from a variety of driver, such as an increasing number of car enthusiasts and an increasing number of 45- to 64-year-olds (those who are more likely to own sports and luxury cars), who spend more per tire than any other age group.

Looking forward through 2010, all of these factors can be expected to continue, the firm said. In particular, increases in the number of SUVs in the US automobile fleet, and a wider availability of all-season high-performance tires should drive average price per tyre higher.

According to Research and Markets, if the market is to see more rapid growth, suppliers and retailers must persuade consumers that a higher-performance tyre is a safer tyre. Given the availability of entry-level all-season performance tyres, this message, if accepted by the public, could result in several years of 5 per cent to 10 per cent annual growth.