The tire market - France (2024)

1.2 Global market growth

Tire market trends France, **** - ****, in billions of euros Source: ****

*projections

valued at $*** billion in ****, the global tire market is expected to grow at an average annual rate of *.*% until ****, reaching sales of $*** billion.

Passenger car tire production breakdown Europe, ****, in Source: ****

At European level, Germany is the leading producer of passenger car tires (***). France, however, is one of the main producers, accounting for *.*% of European production, making it the fifth largest producer in the region.

1.3 The French market

Trends in tire sales volume (***) France, **** - ****, in millions Source: ****

The French tire market is generally very stable. There have been few significant rises or falls over the past decade, apart from during the pandemic. The market did contract in **** (***). In ****, market volume was estimated at **.* million tires.

Evolution of tire sales volume by type France, **** - ****, index base *** **** Source: ****

More specifically, the sector is driven by sales of *x* tires. Indeed, tire sales in this segment have risen by **% since ****. The passenger segment grew slightly between **** and ****, finally returning to its initial level in ****. The pandemic amplified this recessionary dynamic, and today this segment is still below its **** performance (***). Finally, the van segment was very stable during the **** decade, but was also impacted by Covid, and is still struggling to find a second wind.

Trends in tire production and retreading - Domestic and export markets France, **** - ****, index base *** in **** Source: ****

Using the sector's sales in ****, we obtain sales in ****: Sales **** * Index **** / *** = *.*** * ***.* / *** = *.*** Bn

Thus, tire production sales in France would amount to *.*** billion euros in ****.

Thanks to the section on foreign trade (***), we can find the sales figure for the domestic market: Market sales = Production sales - Exports + Imports = *.*** - ...

1.4 Foreign trade

External balance of the tire sector France, **** - ****, in thousands of euros Source: ****

After the pandemic, international trade rapidly picked up again, particularly imports. The coverage rate was *.** in ****. The main countries receiving French exports are as follows:

Main tire export partner countries France, ****, in thousands of euros Source: ****

Germany is by far the country receiving the most French exports: the equivalent of *** million euros of exports were destined for this country in ****. The USA and Spain are also major trading partners, importing *** and *** million eurosrespectively from France in ****. The majority of exports are therefore to nearby countries in the same region. The USA is an exception to this trend: it is the only non-European partner in the top ** recipients of French exports.

Main tire import partner countries France, ****, in millions of euros Source: ****

In terms of imports, Germany is our leading partner, supplying us with the equivalent of *** million euros worth of tires in ****. Spain is the second largest supplier, with a total import value of *** million euros. Italy completes the podium with *** million euros of imports. With the exception of China, the picture is the same as for exports: France imports most of its tires from neighboring countries, or ...

2.1 Structural determinants of demand: road traffic

Naturally, the demand for tires (***) is highly dependent on the density of road traffic in France. These two indices are correlated, since the more cars there are, the more tires are needed.

Average daily traffic trends France, **** - ****, in vehicles/day Source: ****

There is a structural increase in road traffic in France. On average, there will be more than *,*** additional vehicles per day in **** compared with ****. Admittedly, traffic levels were lower that year due to the Covid project, but the momentum is still there (***).

The increase in traffic also translates into a rise in the number of kilometers traveled:

Number of kilometers traveled France, **** - ****, in vehicles.km Source: ****

After a contraction of -**.*%, road traffic is back on the rise in ****, with an increase of **.*%. This upward trend continues, with road traffic increasing by *.*% in ****, and also recording a *.*% increase in **** compared with ****, albeit to a lesser extent.

Finally, the rise in road traffic is also reflected in the increase in the number of electronic toll subscribers:

Trend in the number of liber-t subscribers (***) France, **** - ****, in units Source: ****

The number of electronic toll subscribers is growing. There will be **.* million in ****, almost * million more than in ****.

2.2 Demand drivers: the seasons

The seasons play an important role in tire demand. But not all French people are sensitive to this variable, and therefore don't change their tires all year round:

Tire choice by season France, ****, in Source : Goodyear The majority of French drivers use all-season tires all year round (***). More than a fifth use summer tires all year round. Demand is therefore not really impacted in the first two cases. But for the **% of drivers who use both summer and winter tires, fluctuations in demand are to be expected, depending on the type of tire, throughout the year. The remaining *% use winter tires all year round, or simply don't know which tires they use.

Thus, the proportion of French people who change their tires according to the season is relatively low: Reasons for changing tires France, ****, in Source: ****

In fact, almost **% of French people wait until their tires are damaged before changing them. The seasonal variable is therefore a reason for changing tires for **% of drivers in France.

Driver comfort according to different conditions Europe*, ****, in % of respondents Source: ****

*United Kingdom, France, Germany, Italy, Spain, Romania, Poland, Luxembourg

Weather conditions (***). It should also be noted that, although these figures are based on ...

2.3 French preferences

All-season tires increasingly popular

Tire sales volumes by type France, **** - ****, index base *** in **** Source: ****

Since ****, the trend has clearly been in favor of all-season tires.

Winter tires, on the other hand, are affected by the government's delay in implementing the decree designed to define the amount of fines for failure to use appropriate equipment on mountain roads. Winter tires are also affected by rising winter temperatures.

Focus on industrial tires

Demand for industrial (***) and has fallen below the **% market share mark.

Trends in truck tire sales volumes France, **** - ****, index base *** in **** Source: ****

For trucks, all-season tires dominate the market (***), with new tires taking over from retreads. The evolution of sales volumes for these two categories is almost inversely proportional.

2.4 Favourite Brands in France

Preferred tire brands France, ****, % of total Source: ****

Michelin is by far the most popular tire brand in France, with **% of respondents saying they like the brand. It is also the best known: only *% of those surveyed did not know it. The other four brands have relatively similar statistics: they are liked by an average of a third of those surveyed, and unknown to a fifth.

Distribution of respondents who say they like this tire brand by age group France, ****, in % Source: ****

For individuals aged between ** and **, the proportion of people who say they like the Michelin brand is slightly lower (***). This trend is also visible to a lesser extent with other brands. In fact, the shares of **-** year-olds who like the Continental and Goodyear brands are **.*% and **% respectively, compared with **% and **% among the over-**s.

Share of respondents who find this brand "useful France, ****, in Source: ****

Michelin is also the tire brand with the greatest consensus on its usefulness. **.*% of respondents find it useful in ****. The other brands are also less popular in this respect. Goodyear is the second most popular brand (***).

3.1 Market organization: from new tire production to distribution

Source: ****

3.2 A trend towards concentration of players

The sector appears to be undergoing a process of concentration, as illustrated by the following graph:

Number of establishments in penumatic manufacturing and retreading France, **** - ****, in units Source: ****

The number of companies registered under NAF code ****Z "Tire manufacturing and retreading" has effectively been in structural decline since ****. In ****, there were ** fewer establishments than in ****, for a total of ** establishments.

Source: ****

This downward trend is also reflected in the sector's workforce:

Change in salaried workforce in the tire manufacturing and retreading sector France, **** - ****, in units Source: ****

There are fewer and fewer employees in the sector, largely due to the decline in the number of employing establishments. The workforce has shrunk by more than **.*% in * years, reaching *,*** in ****.

3.3 Distribution

the following chart shows the changing structure of the tire sales sector since ****:

Passenger car tire volumes by distribution channel France, **** - ****, in Source: ****

The growing popularity of other channels (***).

Focus on specialized distribution

Breakdown of volumes by type of activity France, ****, in Source: ****

In terms of volume, the BtoB and BtoC shares of the specialized tire distribution sector are virtually balanced. However, a look at the breakdown of sales shows that one type of business is far more profitable than the other:

Breakdown of specialized tire distribution sales France, ****, in Source: ****

In fact, three-quarters of specialist distribution sales are generated on a BtoB basis. This type of business is certainly more profitable.

What's more, specialist distributors largely dominate the BtoB market, as the following graph shows:

Volume market share of specialist retailers France, ****, in Source: ****

Specialist dealers hold at least **% of the market share for truck tires (***). This distribution channel therefore remains essential to the BtoB market, despite the meteoric rise of new channels mentioned earlier.

4.1 Tyre types and main parts

The main parts of tires

The crown area: This is the area in contact with the road surface, so it must provide grip without impeding rolling. In addition, to prevent aquaplaning, this zone is sculpted with slots, the depth of which depends on the type of tire and current regulations. Sidewall: this area is made of a softer rubber than the rest of the tire. It must be resistant to various impacts (***), and it's here that you'll find the obligatory markings. The lower zone (***), is located between the inner rubber and the crown area.

There are many different types of tire, but the main sellers include :

Summer / winter tires Puncture-proof tires Tubeless Tube type Diagonal structure Radial structure

4.2 Price trends

Tire price trends by category France, **** - ****, in € incl. VAT Source: ****

While tire prices (***). Light truck and touring tires, meanwhile, reached record prices in ****: the price of a light truck tire is €***, and the price of a touring tire, although still the least expensive, is €***.

Average price trends for all-season, summer and winter tires France, **** - ****, index base *** in **** Source: ****

Victims of its own success, the price of all-season tires had already risen sharply in ****, before stabilizing until ****, when the prices of all three types of tire rose significantly. This rise continues until ****. Summer tires suffered relatively the least from inflation.

4.3 Sales structure by product

Breakdown of sales volumes by product type France, ****, in Source: ****

In terms of volume, sales of passenger tires account for a significant share (***). However, the orders of magnitude change dramatically when we reason in terms of sales rather than sales volume:

Breakdown of specialized tire distribution sales by product type France, ****, in Source: ****

Half of the sector's sales are in fact generated by truck tires (***). Finally, truck tires are the most profitable products, despite the low sales volume they represent.

5.1 Harmonized systems and Nomenclature des Activités Françaises

The Harmonized System is an international nomenclature for product classification. It enables participating countries to classify traded goods on a common basis for customs purposes. At international level, the Harmonized System (***) for the classification of goods is a six-digit code system. [***]

The HS comprises around *,*** item/product descriptions, which appear as headings and subheadings, divided into ** chapters, grouped into ** sections. The six digits can be divided into three parts. The first two digits (***).

The Harmonized System was introduced in **** and has been adopted by most countries worldwide. It has undergone several changes in product classification. These changes are called revisions and came into force in ****, ****, ****, **** and ****. Detailed changes to each HS nomenclature are available on the links below.

To compile the foreign trade and market calculation statistics for this study, we have selected the following fields:

For internal production[***]

NAF **.**Z : Manufacture and retreading of tires NAF **.**Z: Manufacture of motor vehicles

For foreign trade[***]

**** : New tires, rubber **** : Retreaded or used rubber tires; solid or hollow rubber tires, treads and tire flaps.

5.2 Current regulations

Since June ****, all tires manufactured and marketed within the European Union must carry a sticker or label displayed at the point of sale. The label must provide a range of information:

Wet braking (***) Tire noise level (***) Fuel consumption (***)

Source: ****

These obligations were reinforced in November **** and **** with controls. This labeling system provides consumers with transparent, objective information on the quality of the tires they buy.

New label

Since May *, ****, a new European label has been in force. It retains the three existing pieces of information, but a rating for grip on snow and ice has been added. A QR code is also present on the label, providing access to additional information on the tire[***]. Here's the format of the new label:

Loi Montagne

"The Loi Montagne (***) requires drivers in certain mountainous regions to fit * winter tires* or snow chains/socks between November * and March **. Fourteen regions are affected by this law. This new regulation should have an impact on the winter tire segment[***].

European differences

The obligation to equip vehicles with winter tires varies considerably across Europe, depending on national and sometimes even regional regulations.

Source: ****

6.1 Segmentation

• Michelin Groupe
• Goodyear
• Bridgestone
• Euromaster
• Speedy (Bridgestone)
• Mobivia Groupe (Norauto, Midas)
• Point S
• Allopneus
• Feu Vert
• Norauto
• Pirelli
• Continental
• Midas France
• Hankook Tire
• Roady (ITM Intermarché)
• WYZ Entreprise
• Bestdrive (Continental group)
• First Stop (Bridgestone)
• 1001Pneus
• GCS Génie Civil Service