The tire market - France

The global tire market has demonstrated resilience with an expected valuation of 276 billion euros in 2022, propelled by an 8.05% average annual growth rate set to continue until 2029. Despite a contraction in 2020 due to the pandemic, the market quickly rebounded in 2021, with the French market making a significant recovery with a 16.6% increase in tire sales volume. A shift toward all-season tires is evident in France, with these tires expected to comprise 27% of 2022 sales. The market is also experiencing a surge in 4x4 tire sales, with an unprecedented 458% increase. Online sales are thriving at the expense of specialist retailers, contributing to competitive pricing and impacting manufacturers' margins. Notably, despite the overall sector's workforce decline by over 16%, premium segments are flourishing.

Regulations such as the harmonized labeling system and the Loi Montagne have influenced consumer behavior, while a preference towards all-season and higher-quality tires is apparent among French consumers. Michelin remains the dominant brand, holding a majority preference of 64.2% in France. Overall, robust demand and market expansion are shaping the tire industry's trajectory post-2020.

Navigating the Dynamics of the French Tire Market: Demand, Trends, and Consumer Preferences

The French tire market is experiencing an interesting evolution, with the demand for tires intimately linked to the steady increase in road traffic. Observing recent years, there's been an uptick in the number of vehicles on the road, significantly contributing to the need for both original equipment and replacement tires. In particular, the volume of traffic has augmented, translating to over 20% growth since the early 2000s. One notable trend is the rising popularity of all-season tires among French consumers. This segment has seen a significant surge, accounting for nearly one-quarter to one-third of total tire sales. Curiously, despite the seasonal changes in France, a relatively low proportion of drivers switch to winter tires, indicating that most wait until tire damage to consider replacements. Looking at market structure, the French tire sector is demonstrating signs of consolidation, with fewer establishments in tire manufacturing and retreading.

The distribution channels are also shifting, with "pure players" and other new sales channels gaining ground at the expense of specialist retailers. Notably, almost one-half of passenger tire distribution in volume has moved to these alternative channels. On the price front, tire costs, after a period of decrease, started to climb and have continued their ascent across various categories. Interestingly, all-season tires have become pricier over time, likely due to increased demand and perhaps a premium placed on their year-round utility. Delving into the product types, the French market is leaning heavily towards passenger tires, which represent a substantial majority in terms of volume.

However, when it comes to profitability, truck tires take the lead despite constituting a smaller proportion of volumes sold. Brand loyalty is quite evident in France, with Michelin emerging as the clear favorite among tire brands, appealing to a significant two-thirds majority. This preference also tends to strengthen with age, as a higher percentage of the older demographic exhibits affinity for the brand. Not only do consumers favor Michelin, but they also regard it as a useful brand, a sentiment that resonates with over one-third of the respondents surveyed.

In conclusion, the French tire market remains dynamic and robust, driven by the continued growth in road traffic and a distinct shift in consumer preferences towards all-season tires. While the marketplace exhibits a trend towards consolidation and new distribution methods, the affection and trust in established brands like Michelin still hold a strong influence over consumer choices.

Key Players Shaping the Tire Industry Landscape

As we examine the landscape of the tire industry, several major players emerge as pivotal forces driving innovation, market dynamics, and consumer preferences. These companies not only influence the types of tires consumers select but also how they are distributed and sold in a highly competitive market.

• Michelin stands at the forefront of the tire manufacturing world, not merely as a leader in market share but also as the most recognized and preferred brand among French consumers. Known for its commitment to quality and safety, the popularity of Michelin is evident across various demographic groups, especially among the older generation who show a profound loyalty towards the brand. Michelin's prominence is bolstered by the brand's far-reaching reputation for producing reliable tires that embody performance and durability.
• Continental is another powerhouse, with a robust presence in the European sector, particularly in the production of passenger car tires. The company, which traces its origins to Germany, has established itself as a standard-bearer for tire innovation and technological advancements. Its favored status among consumers, although not as pronounced as Michelin's, reflects Continental's strong brand image and the trust it has cultivated over the years.
• Making a substantial mark in the industry, Goodyear has secured its position through strategic market offerings, including a mix of all-season, summer, and winter tires. The American multinational corporation holds an esteemed reputation for delivering quality and has become known for tires that support drivers across various weather conditions and driving scenarios. Goodyear's expertise extends from consumer vehicles to commercial trucks, showcasing a versatile and far-reaching product lineup.
• Bridgestone, the Japanese multinational auto and truck parts manufacturer, adds to the global diversity among tire industry leaders. With an extensive portfolio that includes tires for a wide range of vehicles, from passenger cars to heavy-duty trucks, Bridgestone offers consumers a blend of performance, safety, and efficiency that caters to the needs of a dynamic market.
• On the distribution front, specialized retailers such as Euromaster France and Point S have carved out significant niches for themselves. These companies focus on the specialized tire distribution sector and have established strong BtoB and BtoC presences. They offer a comprehensive range of services, from sales to maintenance, demonstrating the integral role specialist distributors play in connecting consumers with the right tire products.
• Lastly, ProfilPlus represents a rising presence in the specialized distribution market, serving both business and individual customers. 

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 13/10/2023

Summary and extracts

List of charts

• Tire market trends
• Breakdown of passenger car tire production
• Average daily traffic trends
• Number of kilometers traveled
• Growth in the number of liber-t (electronic toll collection for light vehicles) subscribers
• Seasonal tire selection
• Reasons for changing tires
• Driver comfort in different conditions
• Number of establishments in tire manufacturing and retreading
• Change in the number of employees in the tire manufacturing and retreading sector
• Passenger car tire volumes by distribution channel
• Breakdown of sales volumes by type of activity
• Breakdown of specialized tire distribution sales by type of activity
• Volume market share of specialist dealers
• Tire price trends by category
• Average price trends for all-season, summer and winter tires
• Balance of trade in tires (2211Z)
• Main tire export partner countries
• Main tire import partner countries
• Trends in tire sales volume (passenger, light truck, 4x4)
• Tire sales volume by type
• Trends in tire production and retreading - Domestic and export markets
• Tire sales volumes
• Truck tire sales volumes
• Breakdown of sales volumes by product type
• Breakdown of specialized tire distribution sales by product type
• France's favorite tire brands
• Distribution of respondents who say they like this brand of tire by age group
• Percentage of respondents who find this brand "useful