The global pallets market size was $72.8 billion in 2021 and is anticipated to reach $108.5 billion in 2031, growing at a rate of 4.1% from 2022 to 2031.
A pallet is a tertiary form of packaging which is used for storage, stacking, transporting, or protecting products in supply chains. They can be produced by utilizing materials that include wood, plastic, and metal among others. They are available in various sizes and specifications, thus making them appropriate for use in several manufacturing industries. They are used to transport products for industries such as food, beverages, electronics & electrical, home care products, healthcare products, and others.
Pallets Market Scope and Structure Analysis
|Market Size in 2021||$72.8 billion|
|Market Size in 2031||$108.5 billion|
|Growth Rate (2021-31)||4.1%|
|Segments Covered||Material, Type, Application, Solution, and Region|
|Key Companies||Brambles Limited, CABKA Group GmbH, Craemer Holding GmbH, Falkenhahn AG, LOSCAM International Holdings Co., Ltd., Menasha Corporation, Millwood, Inc., Rehrig Pacific Holdings, Inc., Schoeller Allibert Services B.V., and UFP Industries, Inc. (PalletOne)|
|Regional Scope||North America, Europe, Asia Pacific, Central & South America, Middle East & Africa|
|Analysis Coverage||Market Forecast, Competitive Landscape, Drivers, Trends, Restraints, Opportunities, Value-Chain, PESTLE, Key Events and Developments|
Global Pallets Market Trends and Drivers
The global pallets market is anticipated to observe substantial growth going forward on account of increasing application in food & beverage, healthcare, and other industries. In addition, the rise in population along with the growing disposable income of middle-class customers are projected to drive the demand for food & beverages, medical, and personal care products. This, in turn, is anticipated to lead to a consequent increase in demand for the pallets market. Moreover, governments globally are focusing on the development of the manufacturing sector in order to increase the global economy. For example, the ‘Made in China 2025’ initiative by the Chinese government and the ‘Make in India’ initiative by the Indian government have positively propelled the manufacturing sector. The upsurge in manufacturing activities has stimulated the demand for a variety of plastic components as well as packaging solutions, thus providing remunerative opportunities for the pallets market.
The unprecedented progress of the e-commerce industry is anticipated to stimulate the demand for pallets on a noteworthy scale. The COVID-19 epidemic has augmented the inclination of individuals toward e-commerce platforms, specifically in nations such as India, the U.S., Germany, and others. Thus, the growth in penetration of e-commerce platforms has challenged supply chains to improve transportation & logistics in order to regulate the flow & cost of incoming and outgoing products. Online orders are in lesser numbers and frequency is higher, therefore necessitating more assets for goods management. This generates a demand for pallets meant for e-commerce-based logistics. This, in turn, propels the global pallets market growth.
Global Pallets Market Restraints & Challenges
One of the major factors hindering the global pallets market growth is the stringent regulations for the usage of plastics & wood on account of concerns regarding increased packaging and consequent recyclability issues. Further, the restrictive availability and the huge price of raw materials for producing pallets are anticipated to restrain the market growth. As the market is majorly dominated by wooden pallets, which are produced using lumber, often leads to fluctuations in the prices. Wood prices usually rise in the spring as constructors stock up for the construction sector, and also owing to the bad weather & less penetration towards the building construction, the prices fluctuate.
Global Pallets Market Segmentation
The report analyses the pallets market based on material, type, application, solution, and region.
Global Pallets Market By Material
Based on material, the global pallets market has been bifurcated into plastic, wood, and others. The wood segment is anticipated to account for the largest pallets market share in 2021, and plastic is expected to be the fastest-growing segment during the forecast period.
Wood pallets play a significant role in the movement of effective & safe transport along with efficient storage throughout the distribution & handling process globally. Even though there are standardized versions, pallets are manufactured in different sizes as well as configurations to hold different handling equipment such as forklifts and cargoes. In addition, nearly three-fourths of all wood pallets are now being recycled, which is more than the recycling rate of paper, aluminum, or plastic. Besides, wood that is used for producing pallets is a by-product of timber that is used in building construction and furniture.
Global Pallets Market By Type
By type, it is divided into stackable, nestable, rackable, and display. The stackable segment is expected to hold a significant share of the market due to the rise in the use of pallets in food & beverage as well as in the retail industry globally. In addition, there has been an increase in demand for efficient and reliable pallets in several regions globally. Further, factors such as sustainability concerns, product modernization, and attractive economics are leading to the growth of the pallets industry.
Global Pallets Market By Application
By application, it is categorized into chemical, retail, pharmaceutical, food & beverage, and others. The food & beverage segment is anticipated to exhibit a significant growth rate during the forecast period. The growth was principally driven by farmers and agricultural players to handle fresh produce along with the dairy, beverage, bakery, meat, and other food & beverage processing companies to handle, store, and transport processed & raw end products.
Global Pallets Market By Solution
By solution, it is categorized into new sales and rental. The rental segment is expected to exhibit a significant growth rate during the study period. A company rents pallets from a shared pool instead of purchasing its own pallets. The main job of the pallet rental is to confirm the supply of pallets in good condition and ready-to-use at the firm’s disposal when it needs them. Rental pallets are a preferred choice by warehouse operators as it conserves time and resources linked with maintaining, repairing, and sorting individual pallets.
Geographical Analysis of Global Pallets Market
Region-wise, it is studied across North America, Europe, Asia Pacific, and the Rest of the World. Asia-Pacific accounts for the largest market share in the pallets market and is forecasted to register the fastest CAGR from 2022 to 2031. The adoption of pallets is the highest in the Asia Pacific during the forecast period. The region displays the highest adoption of wooden and plastic pallets for huge exports and imports of products. Countries such as China, Japan, and India are expected to be the most remunerative markets in the estimated years. Further, factors such as rapid development in the automotive and packaging industries, along with the growing demand for effective and advanced pallets are anticipated to propel the growth of the Asia-Pacific pallets market. Besides, the presence of numerous medium-to-large players in the region is also attributable to rapid revenue growth.
Major Players of the Global Pallets Market
The global pallets market report includes players such as Brambles Limited, CABKA Group GmbH, Craemer Holding GmbH, Falkenhahn AG, LOSCAM International Holdings Co., Ltd., Menasha Corporation, Millwood, Inc., Rehrig Pacific Holdings, Inc., Schoeller Allibert Services B.V., and UFP Industries, Inc. (PalletOne).
Several companies globally are trying to provide sustainable solutions to the market. For example, a supply chain management firm Yelopack offers smart logistic solutions on the basis of shared pallet and package service to industrial customers with a presence in countries such as China, South Korea, Russia, Japan, Malaysia, and Singapore. The company adopted the AFFINITY polyolefin elastomer (POE) in its current plastic pallets in 2021. The adoption of this technology which is offered by Dow permits Yelopack to intensify the lifespan of its pallets by nearly 150%, plummeting its carbon footprint.
According to the International Monetary Fund (IMF), due to the epidemic of a novel coronavirus, the worldwide economy decreased by over 3.0% in 2020. Several nations were under strict lockdowns in 2020 & 2021, which have impacted the supply of raw materials. Therefore, due to this, the manufacturing activities of plastic film producers have ceased. However, due to COVID-19, there has been a new interest found in the hygiene of the packaging due to heightened safety concerns. Moreover, the period observed an e-commerce boom, thus, augmenting the necessity for well-designed as well as functional pallets which are hygienic and sustainable. Hence, COVID-19 had a mixed effect on the pallets market growth during the forecast period.
- In March 2022, Cabka, a provider of pallets and large containers, and Dutch Star Companies reached a final agreement on a business combination to list as Cabka N.V.
- In December 2021, Unilode Aviation Solutions entered into a 5-year unit load device (ULD) supply management, as well as a repair agreement with Goedis, a supply chain provider. Unilode provides pallets and offers its complete range of ULD management solutions such as planning, procurement, logistics, digitalization, and repair to Geodis.
- In December 2021, supply chain solutions firm CHEP announced that it rented out and reused nearly 345-million wooden pallets utilized in the transportation of products, which lessens costs and reduces environmental impact. It partnered with a food & beverage company named Clover which led to the reduction of CO2 emissions by nearly 56%, its wood usage by over 70%, and its waste by approximately 60%, which is equal to preserving 2,666 trees per year.
- In December 2021, a pallet recycler and supplier named Kamps Inc. acquired Tritz Pallet. Tritz Pallet is a provider of pallet recycling and full-service pallet solutions. This acquisition augments the physical footprint of Kamps to more than 40 asset-based locations setting its presence in the Great Plains region.
- In November 2021, Kraftpal, a producer of lightweight, durable, and recyclable corrugated pallets tried to create designs of corrugated cardboard pallets that encounter industry standards of legacy wooden pallets. The company aimed to eradicate the usage of wood in the mainstream logistical pipelines. This move is a paradigm shift to bring sustainable solutions to the pallets market.
Pallets Market Report Coverage
- The report offers a comprehensive quantitative as well as qualitative analysis of the current global pallets market outlook and estimations from 2021 to 2031, which helps to recognize the prevalent opportunities.
- A thorough analysis of market trends and restraints is provided.
- Region-wise, as well as country-wise conditions, are broadly evaluated in this report.
- The forecasts in this report are made by examining the recent trends along with future pallets market potential from 2021 to 2031 in terms of revenue.
- Porter’s five forces analysis, SWOT analysis, COVID-19 impact analysis, Russia-Ukraine war impact, and PESTLE analysis of the pallets market are also analyzed.
- Major players in the market are profiled in this report and their key developmental strategies are studied in detail. This will provide an insight into the competitive landscape of the global pallets industry.
Frequently Asked Questions
Q. How big is the pallets market?
Ans. The global pallets market size was $72.8 billion in 2021 and is anticipated to reach $108.5 billion in 2031, growing at a rate of 4.1% from 2022 to 2031.
Q. What is the pallets market growth rate?
Ans. The growth rate of the pallets market is 4.1% from 2022 to 2031.
Q. Which region holds a major market share for the pallets market?
Ans. The Asia-Pacific region holds a major market share of the pallets market in 2021.
Q. Which segment accounted for the largest pallets market share?
Ans. By solution, the new sales segment accounted for the largest pallets market share.
Q. Who are the key players in the pallets market?
Ans. The key players profiled in the report include Brambles Limited, CABKA Group GmbH, Craemer Holding GmbH, Falkenhahn AG, LOSCAM International Holdings Co., Ltd., Menasha Corporation, Millwood, Inc., Rehrig Pacific Holdings, Inc., Schoeller Allibert Services B.V., and UFP Industries, Inc. (PalletOne).
Q. What are the factors driving the pallets market growth?
Ans. The major factors driving the growth of the market are the rise in demand for packaged goods along with growth in investments for R&D activities in pallets.
Q. What are the key growth strategies of pallets market players?
Ans. The key growth strategies of pallets market players are product launch, expansion, and acquisition.
Q. Which region will provide more business opportunities for the pallets market during the forecast period?
Ans. The Asia-Pacific region will provide more business opportunities for the pallets market during the forecast periodRead More