From Waste to Energy: Vietnam has the Highest Tyre Recycling Rate at 85%

Cognitive Market Research Asia Pacific Tire Recycling Market Report 2025  estimates the global tire recycling market at USD 12.43 billion in 2024, with the Asia Pacific region accounting for approximately 23% (USD 2.86 billion) and a projected CAGR of 6% from 2024 to 2031 – with India as the highest projected growth of CAGR 26.8%, Australia at 5.7% and China at 5.5%.

Australia’s consumption of new and used tyres in 2023-24 was estimated 740,000 tons, approximately 24% of used tyres are going to circular product applications, 30% (160,000 tons) of used tyres are still unrecovered and disposed of into landfills, buried or burnt onsite, Recovery for processing into tyre derived fuel (energy recovery), mainly for export to Asia, represents 40% (217,500 tons) of used tyre end fates. Energy recovery is not circular, as the material is lost once it is burnt as fuel. (Tyre Stewardship)

The most effective tyre recycling country in Asia depends on the criteria used—recycling rate, government policies, or market growth. Based on recent data:

• Vietnam: Reportedly recycles over 85% of discarded tires annually.
• Malaysia: Recycles around 70%, with strong private sector involvement.
• Thailand: Achieves about 60% recycling, supported by government initiatives.
• China, India, Japan, and South Korea: Major players in the tire recycling market due to high vehicle production and environmental regulations.
• Indonesia: Struggles with lower recycling rates (~20%) due to infrastructural challenges.

Vietnam’s tyre recycling efforts have significant environmental benefits, including reductions in carbon emissions, pollution, and landfill usage.

Carbon Emissions and Pollution Reduction: Traditional disposal methods for waste tires, such as landfilling and incineration, contribute to environmental pollution and greenhouse gas emissions. In contrast, recycling processes like pyrolysis thermally decompose tires in the absence of oxygen, producing valuable byproducts such as fuel oil, carbon black, steel, and syngas. This method not only reduces the volume of waste tires but also decreases CO₂ emissions and other pollutants associated with conventional disposal methods.

Landfill Reduction: By recycling approximately 85% of its discarded tires annually, Vietnam significantly reduces the number of waste tires destined for landfills. This high recycling rate alleviates the environmental burden on landfill sites and promotes more sustainable waste management practices.

Recycled Tire Products: These recycling initiatives not only mitigate environmental impacts but also support a circular economy by repurposing waste into valuable materials.

Recycled tires in Vietnam are transformed into various valuable products, including:

• Fuel Oil: Extracted through pyrolysis, this oil serves as an industrial fuel for power plants, cement factories, and other facilities.
• Carbon Black: A byproduct of pyrolysis, carbon black is utilized in manufacturing electric cable jacketing, rubber additives, and other industrial applications.
• Steel Wire: Recovered steel from tires is recycled and sold as scrap for use in various steel products.
• Reclaimed Rubber: Processed from waste tires, reclaimed rubber is used in producing mechanical rubber goods, footwear, matting, belting, and automotive parts.
• Rubber Granules: These are used in creating rubber tiles, mats, and other products, contributing to resource efficiency and environmental protection.

Video: by Pham Thi Anh: Vietnam Waste To Energy

So what’s driving this Growth and Business Opportunities?

Increased demand for sustainable products for consumers and businesses is growing, demanding products made from recycled tires, such as rubberized asphalt, crumb rubber products, tyre-derived aggregate (TDA) for infrastructure projects, and tyre-derived fuel (TDF). This increased demand stimulates the growth of the tire recycling market.

Investments in recycling infrastructure, such as recycling facilities and processing plants, contribute to the expansion of the tire recycling market. Improved infrastructure allows for more efficient tire collection and processing.

Alternative fuel sources in the use of tyre-derived fuel (TDF) in industrial applications, such as cement kilns and power generation, offer an alternative and sustainable energy source. As the demand for sustainable energy solutions grows, so does the demand for TDF, driving the tyre recycling market.