The global reclaimed rubber market is projected to expand at a compound annual growth rate (CAGR) of 10.5 percent from 2025 to 2034, driven by cost-efficient alternatives to virgin rubber and a shift towards circular economy practices, as per a report prepared by Polaris Market Research & Consulting LLP.

The report further added that the market size is expected to rise from USD 1.6 billion in 2025 to USD 3.95 billion by 2034.

Market dynamics and growth drivers

The report said the market’s growth is underpinned by the increasing adoption of circular economy models, particularly in the automotive and manufacturing sectors.

The Reclaimed rubber, sourced primarily from end-of-life tyres, reduces waste while offering a sustainable alternative to virgin materials. Regulatory pressures on waste management and carbon reduction have accelerated its adoption globally.

The report added that technological advancements are also bolstering the industry. Modern techniques, such as devulcanisation, have significantly improved reclaimed rubber quality and production efficiency, addressing the limitations of traditional recycling methods.

Automotive sector leads demand

The automotive sector remains the largest consumer of reclaimed rubber, driven by sustainability targets and cost considerations. Automakers face stringent emissions regulations and rising pressure to reduce environmental footprints, prompting increased use of reclaimed rubber in tyres, seals, and other components.

Regional trends

Regarding regional trends, the report said North America currently dominates the reclaimed rubber market and is expected to maintain its leadership throughout the forecast period. However, growing demand across Europe and Asia-Pacific, fuelled by industrial and automotive expansion, will further accelerate global market growth.

The Rubber Board, which is observing its 77th anniversary this year, organised a press conference to showcase a novel method developed by the Rubber Research Institute of India (RRII) for recovering high-quality rubber from skim latex.

The new technique creates rubber lumps by treating the skim latex with a specific chemical mixture for 24 hours, then allowing the acid to coagulate. After that, these lumps may be dried and turned straight into skim crepe. About 3–4 percent of the rubber used to make Centrifuged Latex (Cenex) is skim latex, a by-product of the process. Cenex is frequently used in the production of goods including balloons, condoms, and gloves. About 10 percent of the natural rubber produced in India is converted into Cenex via centrifugation, which is accomplished at more than 40 centrifuging facilities.

The current method for recovering skim rubber is the acid coagulation of skim latex, which produces a slurry of skim rubber. After being packed into many plastic sacks, this slurry is allowed to solidify and dewater for two weeks. Skim crepe is made by further processing the resultant skim powder. But this traditional approach is labour-intensive, unrefined and results in bad odours, and it only generates rubber of poor grade. It has also caused public outcry and legal conflicts in the vicinity of Cenex enterprises, and it presents difficulties for wastewater treatment facilities. With the innovative method created by RRII, plastic bags are no longer used and processing takes only twenty-four hours. In addition to improving environmental sustainability and guaranteeing full recovery of premium rubber from skim latex, it drastically reduces offensive odours.

The Federation of Latex Processors (FLP), a group of owners of centrifuged latex factories, has been granted access to this technology on a fee basis. Other organizations and Cenex units can also purchase it. The product is marketed as Indian Purified Skim Rubber (IPSR) by the Rubber Board, which is also working on a patent for the concept. Rubber companies nationwide have expressed a strong interest in employing IPSR in product manufacture as it provides a competitive edge because of its improved quality and reduced cost.

Several efforts to solve various problems that exist in the rubber value chain were also addressed at the press conference. At the press conference, it was revealed that a nationwide celebration of the Silver Jubilee of the National Institute for Rubber Training (previously the Rubber Training Institute) would be organised, with participation from all relevant parties. M Vasanthagesan IRS (Executive Director, Rubber Board), Dr T Siju (Rubber Production Commissioner), Dr M D Jessy (Director-in-Charge, Rubber Research Institute of India) and representatives of the Federation of Latex Processors were in attendance.

Kraton Corporation, a leading global sustainable producer of speciality polymers and high-value bio-based products derived from pine wood pulping co-products, has expanded its CirKular+ product line with the launch of CirKular+ Paving Circularity Series C5000 in line with its long-term vision to create innovative solutions for a sustainable tomorrow.

The CirKular+ Paving Circularity Series addresses the changing demands of the paving industry to use more reclaimed asphalt and lower greenhouse gas (GHG) emissions. It allows for the addition of up to 50 percent or more reclaimed asphalt to the asphalt mix in surface layers while enhancing performance and processability. It increases the modified asphalt's resilience while maintaining resistance to permanent deformation and lowering the pavement's lifetime carbon footprint.  C5000 satisfies requirements for asphalt surface materials and is compatible with Warm Mix Asphalt technology.

Pedro Lopes, Kraton Global VP of Strategic Marketing, Product Management and Supply Chain, said, “Launching the Paving Circularity Series is a testament to our commitment to sustainability and innovation. In Europe, the paving industry is actively working to increase circularity and reduce GHG emissions in alignment with the European Green Deal and the EU’s 2050 climate neutrality goals. The new series helps unlock value-added circularity by enabling polymer-modified bitumen (PMB) producers and contractors to increase the reuse of reclaimed asphalt, thereby reintegrating it back into the road surface layer.”

Perth-based CTS Tyre Recycling is forging ahead with its plans to reshape the options for disposal of end-of-life tyres in Western Australia.

The company, a part of the wider Cometti Group, a family-owned business with more than 40 years of experience in the tyre industry, has invested more than USD 40 million in a state-of-the-art recycling plant at Neerabup, north of Perth, that processes waste tyres into crumb rubber, tyre derived products, reusable high tensile steel wire and reusable textile. The company also made some additions to its management ranks and expanded its links with industry associations as it moves forward with its strategy. These tyres, along with all other sizes, will be remanufactured in the new Neerabup factory into new, high-value goods like load-restraining matting, gym matting, equestrian and farm matting and acoustic underlay.

Leigh Cometti, the company’s Managing Director, identified a potential to diversify into the recycling of end-of-life tyres, concentrating on some of the huge off-the-road tyres utilised in the mining services and agricultural industries. Over 90 percent of the bigger OTR tyres now in use in Western Australia are thought to end up in landfills. Tyres are commonly buried in pits left behind during excavation, which results in the greatest landfill disposals in the Pilbara area. The recycling programmes will lessen the need for more virgin products in addition to decreasing landfill discharge.

Cometti has brought on two seasoned senior level managers to support him as the company grows. Joseph Jeevaraj has joined as Chief Financial Officer, while Darren Rodwell has been named Chief Operating Officer. Both positions work for the Cometti Group, which also owns the Bunbury Trucks Sales and Service dealership, CTS People and Mechanics Recruitment.

Continental and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH have extended their project to improve sustainability in smallholder natural rubber farming by three years. About 5,000 indigenous smallholders in West Kalimantan, Borneo, Indonesia, have already received training since 2018 on how to grow premium natural rubber in accordance with well-defined sustainability standards. Co-funded by Continental and the German Federal Ministry for Economic Cooperation and Development (BMZ), the initiative aims to engage an additional 1,000 smallholders by 2027.

Lack of knowledge and low farmer income are two major issues in natural rubber farming that are addressed by the Continental and GIZ initiative in the region of Kapuas Hulu, which is home to a UNESCO biosphere reserve. Farmers are taught sustainable agriculture practices and cultivation techniques through the training offered by Continental and GIZ. This enhances the rubber's quality, boosts yield, streamlines the supply chain and raises rubber producers' profits. Additionally, this aids in putting into practice the crucial subject of preserving or reviving biodiversity in the project region. Transparency is also guaranteed across the natural rubber supply chain, from the rubber tree to its usage in Continental's manufacturing, thanks to the implementation of a digital tracking system.

In addition to increasing local capacity, both the companies are actively assisting in enhancing smallholders' quality of life and encouraging environmentally friendly methods of growing natural rubber. The objectives of the EU Regulation on Deforestation-Free Supply Chains (EUDR) are clearly supported by Continental, which has long been actively dedicated to increased supply chain sustainability and transparency. In addition to Continental's tyre facilities, other manufacturers can purchase the sustainably sourced natural rubber produced as part of the project, and more partners are being invited to join.

Dr Michael Radke, Head of Sustainability in Purchasing, Continental, said, “As one of the largest tyre manufacturers in the world, we have a particular responsibility in the natural rubber supply chain. That is why we are committed at all levels and are building capacity locally. Over the past few years, together with GIZ, we have shown that we can make the natural rubber supply chain transparent and at the same time increase farmers’ incomes. Now we want to reach even more smallholders and create the framework conditions for the successes achieved to be sustained.”