2023 California Waste Tire Market Report

Small increases in some markets and bigger increases in exports setting trends in managing the state’s end-of-life tires

The 2023 California Waste Tire Market Report measures waste tire flows in 2023 through Fall 2024, estimates the tire recycling rate, and explores current and historical trends impacting management of California end-of-life tires.

An estimated 569,684 tons, or 57 million passenger tire equivalents (PTEs) of California-generated waste tires were managed in 2023. The California waste tire recycling rate increased in 2023 to 35.1 percent, a 0.4 percent increase from 2022.

Factors such as federal interest rate increases, and increased transportation and business cost, along with changes in overseas tire-derived material (TDM) markets, impacted disposal-related export markets and disposal tonnage in California.

California waste tires flowed to nine different market segments grouped into Recycling, Disposal-Related, and Disposal categories.

Crumb/ground rubber production overall remained stable, with a very slight decrease, less than 0.5 percent, which the report authors say reflects decreased crumb rubber usage in sports and play surfaces due to ongoing California Office of Environmental Health Hazard Assessment (OEHHA) and CalRecycle study to evaluate potential human health impacts from synthetic turf. Playgrounds and athletic fields are not eligible for Tire Incentive Program (TIP) grants, pending results from the OEHHA study.

Retread sales declined slightly by 3 percent from 2022. Retreaders reported optimism for future sales due to previous acquisitions and fleet EV. The quantity of retread tires in 2023 totaled 55,645 tons (5.6 million PTEs), or 9.8 percent of all waste tires managed.

Used tire sales declined in 2023 by 10 percent. In 2023, an estimated 44,203 tons of used tires (4.4 million PTEs) or 7.8 percent of all waste tires managed were culled from the waste tire stream.

The use of tire-derived aggregate (TDA) in civil engineering increased slightly but overall tonnage remains low compared to historical values. In 2023, TDA use increased by 17.8 percent, totaling 8,682 tons (0.87 million PTEs) or 1.5 percent of all waste tires managed, compared to the 2022 usage of 7,371 tons (0.7 million PTEs) or 1.2 percent of all waste tires managed. TDA was used in vibration mitigation projects and at landfills primarily for landfill gas collection systems.

Other landfill uses of TDA involved road construction. Since 2011, non-landfill TDA use has ranged between 1,500–4,500 tons. There was one non-landfill use of TDA in 2023 as vibration mitigation material.

Common other non-landfill TDA applications in California involve roadside repair, retaining wall backfill, embankment fill, stormwater infiltration galleries, and light-rail vibration dampening projects, among others, the report said.

Also, in 2023, 19,307 tons (1.9 million PTEs) or 3.4 percent of all waste tires managed were used as alternate daily cover (ADC).  According to the report, there are a few landfills that have consistently used tire shreds for ADC in the past, and this amount is expected to remain stable in the coming years.

Landfill disposal decreased in 2023 to 217,909 tons (21.7 million PTEs) or 38.3 percent of all waste tires managed, representing a 26.9 percent decrease from 2022, and continuing a downward trend into 2024.

The report notes that in 2021 and 2022, the main contributing causes of landfill disposal spikes were the disrupted export economics, logistical issues, and bans on imported tire-derived material (TDM) by countries that previously imported TDM.

In 2023, export demand increased dramatically, especially from India. California processors rapidly responded to the increased demand by ramping up exports, which resulted in decreased landfill disposal.

In 2023, the exported TDM, including TDF, increased by 183.7 percent, totaling 105,091 tons (10.0 million PTEs) or 18.4 percent of all waste tires managed.  According to export broker surveys, Japan and India were the largest users of TDM from California in 2023.

For tire-derived fuel (TDF), the California report examines both in-state and export activity in TDF markets.

Among its most dramatic findings, exported tire-derived fuel (TDF) increased in 2023 by 111,721 tons or 270 percent of the 2022 value.

In 2023, the international demand for TDF resulted in large increases in exported altered waste tire rubber (e.g., shreds, baled), along with improved economic returns for California processors. The exported waste tire rubber is reportedly used for TDF and, in some cases, a source of material to produce crumb rubber in India.

In-state, reported shipments of California-generated TDF declined in 2023 by 35.7 percent, totaling 20,858 tons (2.1 million PTEs) or 3.7 percent of all waste tires managed. This amount includes 19,558 tons (1.39 million PTEs) of whole waste tires and size-reduced TDF, as well as 1,300 tons of tire fluff/fiber generated as residual by processors. Despite a national increase of 10 percent TDF use in cement, pulp and paper, and industrial boilers, its utilization in California has declined.

On the crumb rubber market side, estimated shipments of California-generated crumb rubber and ground rubber decreased by 0.2 percent in 2023, totaling 78,159 tons (156.3 million pounds, 7.8 million PTE) or 13.7 percent of all waste tires managed. 2023’s very slight decline in tonnage follows an upward trend in 2021 and 2022.

In addition to crumb rubber and ground rubber, raw and screened buffings of different specifications are also used in certain TDPs (e.g., molded products, playground surfacing, and landscape mulch). It is estimated that well over 15 million pounds of buffings were shipped to users by California retread businesses in 2023. As of 2024, buffings continue to be in high demand. If the number of retreads declines, so does the amount of buffings used in the manufacture of TDPs.

California producers shipped 49,000 tons of crumb rubber for use in asphalt paving projects in 2023, the same number of tons shipped in 2022. Caltrans reported using 17,000 tons of crumb rubber in its pavement projects. California municipalities and the private sector used 25,000 tons of crumb rubber in paving projects. The rest is used for private roads, airfields, parking lots, and other facilities.

California producers shipped over 9,711 tons of crumb rubber to manufacturers and installers of molded and other products in 2023, based on survey responses. Molded and Other Products is a diverse category that includes a variety of applications such as roofing, flooring, tiles, traffic sign bases, ADA transition ramps, and more.

California producers shipped 20 million pounds of crumb rubber for use as infill in new and replacement synthetic turf athletic fields both inside and outside of California in 2023. Since 2015, the long-term trend has been a decline in the use of crumb rubber in turf infill. This decline is attributed to the cautious approach of potential users awaiting the results of the OEHHA study on potential health concerns.

As in 2022, important trends continued to create uncertainty and disrupt business operations and markets to varying degrees through 2023 and into 2024. These trends include a shifting economic outlook with inflation persisting in 2023, coupled with a federal interest rate increase of 0.25 percentage points on four separate occasions in 2023.

Staffing challenges. With continuing low unemployment and increased inflation rates, waste tire management companies, like other industries, have dealt with persistent staffing and hiring challenges, along with rising wages. This is a widely cited issue for companies in all market segments covered in this report.

Trucking and ocean shipping costs and challenges. The staffing shortage of 2022 continued in 2023 and is particularly challenging for the trucking industry, where costs have skyrocketed in recent years. In 2023, ports continued to be severely impacted by worker disruptions and other factors. Exports of TDM increased in 2023 due to increased demand from cement, chemical, pulp and paper, and pyrolysis facilities.

Potential global marketplace changes. Disruptions and uncertainty will likely continue to affect the waste tire industry in 2024 and 2025.

International demand for TDM is continuing to increase in 2024. The slight decrease of California’s retread market in 2023 was influenced by increased imports of inexpensive truck tires.

Imported rubber products sold online and at big box stores compete with products manufactured in California and the U.S., but are often made with chemicals that cannot be used in U.S. manufacturing.

International politics can, and often does, change our local and world marketplace – shifting the focus of economic activity. Movements in capital, people, information, and the acceleration in the scope, scale, and economic impact of technology are felt worldwide, in the U.S., in California, and in our local markets.

© Scrap Tire News, May 2025