How sustainability is driving brand value in the tyres sector

This article was originally published in the Brand Finance Tyres 25 Report 2026.

Tyres can be seen as a very functional product category. Unless your customer is a car fan, they may only think about tyres when it is time to replace them - if they remember - or when they have a puncture. Even then, the decision about which brand to buy might be driven by the brand recommended by the nearest service station, or simply by price.

But that is not fully the case. A good tyre in good condition is fundamental to vehicle performance and safety. Brands such as Michelin, the most valuable tyre brand in the world, have shown that a clear and consistent brand proposition can drive preference and loyalty. Innovations inspire people to think twice. And now, sustainability is fast becoming one of the most powerful levers for brand differentiation in the sector.

According to findings from Brand Finance’s Sustainability Perceptions Index, sustainability now drives 10.3% of brand consideration in the tyres sector, a significant share for a category historically dominated by functional attributes. The key question for brand leaders is how to invest in sustainability in ways that are authentic, highly visible to stakeholders, and capable of creating tangible business value.

Closing the loop

End-of-life tyre management has long been a challenge for the industry, but significant progress has been made in collection and recovery.

In Europe, recovery rates increased from 20% in 1994 to 95% in 2019¹, while in the U.S. stockpiles fell to approximately 48 million end-of-life tires in 2024². However, despite these gains, a large proportion of recovered tyres is still used for energy recovery through incineration rather than being recycled back into productive use.

However, chemical recycling is changing that. The EU-funded BlackCycle project is developing upcycling pathways that convert end-of-life tyres into secondary raw materials suitable for new tyre production³. Pirelli has already incorporated recycled carbon black - a material recovered from old tyres through a high-temperature process—into mass-production tyres for Range Rover.

Continental and Pyrum Innovations have confirmed its use in commercial forklift tyres, with passenger car qualification underway. Michelin has opened a dedicated recycling plant in Chile, processing giant mining tyres from BHP, Antofagasta Minerals and Codelco into rubber chips for reuse.

There are also well-established applications for recycled and repurposed tyres closer to everyday life, including playground surfaces, running tracks, sports pitches, park benches, planters and shoe soles used by sustainable brands such as Timberland. Rubberised asphalt is also widely used in road construction, offering the added benefits of increased durability and reduced noise.

These collaborations and creative solutions, from advanced chemical recycling to more visible consumer-facing applications, provide opportunities for companies to embed technical leadership and a commitment to circularity into a brand narrative that resonates with a broader audience. In doing so, they can strengthen sustainability perceptions and drive brand consideration.

The EV paradox

Globally, tyre wear particles are released into the environment at an estimated rate of six million tonnes per year⁴, making them the second-largest source of microplastic pollution in the oceans. The rise of electric vehicles could exacerbate this challenge.

Electric vehicles eliminate exhaust emissions but are significantly heavier than equivalent internal combustion engine vehicles, primarily due to battery mass.

Heavier vehicles generate greater tyre wear, releasing more particles into the environment - a form of pollution that is attracting increasing regulatory scrutiny. This unintended consequence creates an innovation imperative. Tyre brands developing compounds that last longer under electric vehicle use, release fewer particles, and maintain performance without adding material mass will be differentiated on both sustainability and technical grounds.

Start-ups such as The Tyre Collective are pursuing a complementary approach, developing on-vehicle devices that capture tyre wear particles at source before they enter the air and water.

The technology is already being piloted with some of the largest auto and logistics brands, such as Volvo, BMW Financial Services, PostNL and Rivian.

Tyre companies that position this work through both a sustainability and innovation lens will be better placed to earn preference among fleet operators, automotive original equipment manufacturers (OEMs), and increasingly informed consumers.

Beyond the product

In a low-engagement category, community and social sustainability programmes offer brands a rare opportunity to build emotional connection.

Goodyear's 2024 Sustainable Reality Survey of over 1,700 European transport fleet operators found that 63% cited cost as a major barrier to adopting sustainability solutions, and 43% found existing solutions too complex⁵.

These findings signal an opportunity for tyre brands to simplify their sustainability messaging and position themselves as genuine partners in the sustainability transition for the wider auto and mobility ecosystem.

Several brands are extending their commitment in other ways. Toyo Tires, for example, runs a dedicated Environmental Protection Fund, channelling support to certified non-profit organisations working on environmental conservation. Further up the supply chain, the Global Platform for Sustainable Natural Rubber is working to empower smallholder rubber farmers, recognising that sustainability in the tyre value chain starts long before the tyre is made.

These social dimensions matter because brand consideration is rarely built on product specifications alone. Sustainability perceptions increasingly shape how brands are viewed and valued across the board.

Brand Finance research confirms that Michelin leads the sector on both environmental and social sustainability perceptions.

This position is closely linked to its 'All-Sustainable' strategy and its transparent communications about the engineering and innovation required to achieve the mass production of sustainable tyres by 2050.

Goodyear, meanwhile, leads on governance, having been the only tyre manufacturer recognised on Ethisphere's 2026 World's Most Ethical Companies list⁶. This distinction is a testament to the brand building power of consistent and credible governance commitments.

Sustainability perceptions as a strategic asset

The challenges around particle pollution and end-of-life waste are not new, but the growth of electric vehicles has brought them back into the spotlight, and regulation is following. EU requirements on recycled content, materials traceability and microplastic abrasion are advancing⁷.

The brands that will create value in this environment are those that treat sustainability not as a reporting obligation, but as an integrated strategy - one that connects engineering innovation, collaboration with partners and social impact into a coherent and engaging story. In a category where differentiation is hard-won, that story may prove to be the most durable competitive advantage of all.

Brand Finance Tyres 25 2026

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1. Rossi, E., Gnoni, M.G., Vizzarri, M., et al. (2022). End-of-life options of tyres: A review. Results in Engineering, 15. Available at: https://www.sciencedirect.com/
   science/article/pii/S2542504822000392 ↩︎
2. U.S. Tire Manufacturers Association (USTMA) (2024). USTMA Reports Progress in Tire Recycling and End-of-Life Tire Management. Available at: https://www.ustires.org ↩︎
3. BlackCycle Project. European Commission Horizon 2020 Programme. Circular economy initiative developing technologies to convert end-of-life tyres into secondary raw materials suitable for new tyre production. See also Tire Industry Sustainability (March 2026) and The Sustainable Innovation initiative ↩︎
4. Baensch-Baltruschat, B., Kocher, B., Stock, F. & Reifferscheid, G. (2020). Tyre and Road Wear Particles (TRWP) – A Review of Generation, Transport, Fate and Effects. Environmental International, 139 ↩︎
5. Goodyear (2024). Sustainable Reality Survey. Survey of more than 1,700 European transport fleet operators examining barriers to sustainability adoption. ↩︎
6. Ethisphere Institute (2026). World's Most Ethical Companies® 2026. Available at: https://www.ethisphere.com ↩︎
7. European Union (2024). Euro 7 Regulation. Official regulation introducing requirements relating to vehicle emissions, including tyre abrasion and other non-exhaust emissions. See also European Environment Agency reports on non-exhaust emissions ↩︎

Additional data: Brand Finance Tyres 25 Report 2026; Brand Finance Sustainability Perceptions Index 2026; The Tyre Collective Impact Report 2024; Michelin Better Mining Initiative Communications (2024); Tire Industry Project (TIP) Workplan 2024-2025; Liberty Tire Recycling Sustainability Report 2024; Global Platform for Sustainable Natural Rubber (GPSNR).