As global concerns about waste management and sustainability intensify, Australia’s tyre recycling industry is gaining significant momentum. This growth is driven by a combination of increasing environmental awareness, stringent government regulations, and the economic potential of converting waste tyres into valuable resources. As a result, the tyre recycling sector is poised to play a crucial role in shaping Australia’s sustainable future, while also contributing to the country’s GDP through the creation of new industries, jobs, and revenue streams. In this article, we explore the current landscape of tyre recycling in Australia, its growth potential, and the diverse range of valuable outputs produced through innovative recycling processes.

Scrap Tyre Market Size and Availability in Australia

Australia ranks among the top 20 countries globally for vehicles per capita, with over 21 million registered road vehicles, along with an additional 4.7 million caravans, trailers, and pieces of industrial equipment. This means there are over 100 million tyres on Australian roads, the majority of which eventually end up in landfills or are stockpiled. According to recent data, the Australian tyre recycling market generated approximately USD 392.2 million in revenue in 2024 and is projected to reach USD 518.3 million by 2030. This growth has made tyre recycling a lucrative opportunity for businesses in waste-to-energy and resource recovery, capitalizing on the vast quantities of waste tyres generated annually. Most of these tyres are collected from tyre retailers, automotive repair shops, and local government facilities, before being processed and sold to recyclers.

Current Baled Tyre Export Policy and Collection Fees

Australia’s approach to tyre export has undergone a significant transformation following the introduction of the Recycling and Waste Reduction Act 2020 and the Export—Waste Tyres Rules 2021. Since December 2021, the export of whole baled tyres has been prohibited, except for those processed into shreds, crumbs, or granules smaller than 150 millimetres. Before this legislation, approximately 70% of collected and recovered tyres were exported, primarily as tyre-derived fuel, while only 30% remained for domestic use. This shift aims to boost the domestic recycling industry by restricting whole tyre exports, encouraging local recycling and processing, creating jobs, and reducing the environmental impact of tyre waste. This policy is a significant step towards a more sustainable and circular economy within Australia.

Diverse Outputs of the Tyre Recycling Process

The tyre recycling process is capable of producing a wide range of valuable materials, each with specific industrial applications:

• Tyre Shreds: Produced through primary shredding, typically 50-300 mm in size, these are used in civil engineering projects, including lightweight fill for embankments, backfill for retaining walls, subgrade insulation for roads, and landfill construction for drainage systems. They also serve as a cost-effective alternative to traditional gravel.
• Steel-Free Chips (Rubber Mulch): Created through secondary shredding after steel removal, these 12-30 mm chips contain up to 98% steel-free rubber. They are widely used in landscaping, playground surfaces, and civil engineering, and can also serve as high-energy feedstock for tyre-derived fuel (TDF) and raw materials for pyrolysis oil production.
• Rubber Granules/Crumb Rubber: Produced through granulation, these fine particles (0.8-4 mm) with up to 99.9% purity are used in athletic tracks, gym flooring, playground surfaces, road construction (crumb rubber-modified bitumen), reclaimed rubber sheets, and automotive parts.
• Steel: Recovered steel, mainly from tyre beads and reinforcing belts, can be recycled into new steel products or used as reinforcement in concrete, providing significant cost savings and performance benefits in certain construction applications.
• Textile (Fluff): Tyre textiles, often polyester, are used as reinforcing additives in concrete and stucco, absorbent materials for cleanup, carpet underlay, and sound dampening products. They can also be used as high-energy fuel when mixed with other materials, such as in cement production.

Conclusion

The tyre recycling industry in Australia presents a powerful solution to waste management challenges while unlocking significant economic opportunities. With its potential to transform waste tyres into valuable resources, this industry is set to drive sustainability, innovation, and economic growth. For businesses looking for state-of-the-art technology and reliable recycling solutions, Fornnax offers robust, efficient machinery designed to meet the diverse needs of the Australian market. 

Meet the FORNNAX team at the 2nd Edition of the Eco Sustain Expo – Exhibition & Conference on Solid Waste Management, Bio Energy, Effluent Treatment, Air Pollution, and Recycling, scheduled from 22nd to 24th August 2025 at HITEX, Hyderabad.📍 Stall No: A15, Hall: 4C – Discover the future of recycling, built for tomorrow’s challenges.