The aim of this article has been to provide an insight into Croatian waste tyres market, which is assumed to be the source of significant eco- innovation. At the outset, the analysis of relevant literature has been done regarding the circular economy and eco-innovations. The empirical part of the study used the Strength- Weaknesses-Opportunities-Threats method in order to determine the perspective of the main market stakeholders. In the course of the SWOT method conducting, an in-depth interview was organized with managers of the only authorized mechanical recycling company in Croatia and an on-line questionnaire was used to learn about thinking and attitudes of other ELT market stakeholders in Croatia – representatives of the Ministry of Environmental Protection and Energy, Environmental Protection and Energy Efficiency Fund, Agency for the Environment and the Nature, authorized ELT collectors, Croatian scholars involved in previous waste rubber scientific studies as well as representatives of companies either using or selling rubber recyclate. Additionally, comparison to the European context has been conducted. Findings suggest that Croatian legislation and practice follow European trends: collection rate of waste tyres is near 100 %, and the total collected amount is being recycled – 83 % as the secondary raw material and 17 % as energy recovery. However, situational analysis detected that underdeveloped industrial production hinders seizing the full potential of produced raw material, thus missing the opportunity of generating the higher added value for the domestic economy. Consequently, Croatia’s Eco Innovation Index was by 28 % lower than the EU average in 2017.