The UK tyre industry is facing mounting financial pressures as rising costs continue to challenge both retreaders and tyre wholesalers. With increases in energy prices, insurance, wages, and raw material costs, businesses are forced to adapt to an increasingly competitive market. Phil Robinson, Senior Country Manager (United Kingdom, Ireland and Middle East) at Marangoni and Vice Chairman – National Tyre Distributors Association, caught up with our Editor to share his insights on what lies ahead for the retreading sector in the UK for 2025.
Escalating Costs Across the Industry
The cost of doing business has risen sharply over the past year, affecting every stage of the retreading process. Labour costs are set to rise further, with national insurance and minimum wage increases taking effect in April. “This isn’t just hitting large corporations—retreaders are seeing tens of thousands in additional costs,” Robinson explains. “It’s a very competitive market; tyre retailers and wholesalers will feel the squeeze. Prices of tyres will go up because international shareholders and independent business owners won’t be able to take the hit—they’ll have to pass it on in order to survive and to achieve their corporate goals.”
The Price Squeeze and Market Pressures
Despite these cost pressures, pricing within the UK tyre market has remained relatively stable due to the dominance of budget tyre imports from Asia and India. Aggressive pricing strategies in 2023 made it difficult for some businesses to stay profitable, and the trend hasn’t diminished.
“The last quarter of the year was incredibly tough. A flood of cheap tyres entered the market, and things were quieter than normal for the last four to six weeks of the year. Only in the past few weeks of early 2025 have we started to see some movement again,” he says.
However, with wage and tax increases set to take effect in April, Robinson believes this will be the point at which businesses will have no choice but to adjust prices.
“Everything in the UK is getting more expensive due to the changes implemented by the UK Government—food, clothing, energy, you name it. The tyre industry is no different. We need another four to six weeks to see how the market reacts, but April will be a key moment.”
Freight Volatility and Global Competition
Another major industry challenge is the ongoing volatility in global shipping costs. Freight rates, which had briefly stabilised, surged again in mid-2024, creating further uncertainty for businesses relying on imported tyres and raw materials.
“Last year, container costs dropped as low as $1,500 earlier in the year, but by July, they had shot back up to $8,000–$9,000 from Asia,” Robinson explains. “What’s surprising is that tyre prices didn’t rise to reflect this rate—it might suggest that someone was subsidising the fright increase, and that’s not sustainable long-term.”
He also highlights how shifts in global manufacturing strategies could further reshape the market. “Big tyre manufacturers are already moving production away from Europe and the US due to rising costs. Freight costs have played a part in this—sometimes, it’s cheaper to ship from Asia to the UK than to move goods within Europe.”
The Future of UK Retreading
With all these factors at play, Robinson sees a challenging year ahead but believes businesses that can adapt will find ways to stay competitive. The key, he suggests, will be balancing cost management with maintaining quality and sustainability—something that will become even more critical if further tariff changes occur.
“The UK market was under pressure in 2024, and we saw a shift towards volume over profitability,” he says. “But this has happened before. In the 2000s, some companies moved production for cheaper labour. Now, they’re looking for the next low-cost alternative.” It’s a financial squeeze, not a sustainability move.”
The coming months will determine how businesses respond to these pressures. While some may struggle, others will find opportunities to innovate and strengthen their market position. This will manifest itself in different ways: Some may drive innovation, some may consider sustainability and efficiency investments, and others will seek cheaper alternatives to materials and production. The retreading industry, however, is resilient and has adapted before.
One thing is certain: the cost of doing business is rising, and we’re hopeful businesses across the UK will adapt in an innovative and sustainable way.
