MacKay & Company has released its 2025 Tire Distribution study.
In last year's report, the company uncovered just 23% of tire distributors reported year-over-year sales gains. This year's study shows that number has grown to 28%, but the overall tire market remains below its 2022 peak. This year's study also uncovered distributors indicating declining sales also increased in the last year, which is a bit of a "good news-bad news scenario" for the market.
For businesses involved in retread tire sales, MacKay & Company says the data shows a greater number of respondents reported sales levels unchanged from the previous year, while slightly fewer indicated either increases or decreases in sales compared to prior results.
Tire inventories also have emerged from the supply chain disruptions of the pandemic era, only to encounter new headwinds in the form of rising prices and softening demand. MacKay & Company reports distributors now face the delicate challenge of maintaining sufficient stock to meet customer needs without overextending their investments — especially as tire prices continue to climb.
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In 2024, inventories of new tires have seen a modest increase, possibly signaling a cautious restocking effort. In contrast, retread tire inventories have declined, with an average decrease of 2%, the company adds.
“2024 has introduced a more complex business environment. Sales of both new and retread tires have declined — an effect felt across nearly all business sizes. While prices for both categories have risen, they remain below the levels recorded in 2023,” says Molly MacKay Zacker, vice president of Operations at MacKay & Company.
The company states this shift underscores the evolving challenges tire distributors face, as they navigate pricing pressures and fluctuating demand in a post-pandemic market landscape.
“We now have a classic case of wait and see,” the company states. “This year’s report captures the 2024 landscape, but we’re already seeing dramatic shifts in 2025. With steel/steel cord making up approximately 15% of a truck tire’s composition, the recently implemented 25% steel tariff is significantly raising production costs. Tire manufacturers are expected to pass these increases on to distributors and customers alike.
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“The question now is: How will this affect tire distributors going forward? Only time will tell. Next year’s report finding could paint a very different picture.”
MacKay & Company's 2025 Tire Distribution study represents the second annual report focused on the medium- and heavy-duty tire aftermarket. Since 1995, MacKay & Company has provided a comprehensive look into the tire market through two annual reports. The first report focuses on tire replacement, brand preferences and forecasts as reported by operators and the second highlights tire distribution patterns as reported by tire dealers, truck dealers, independent garages and other distribution channels.
To learn about more report findings, please email [email protected].
