Pallets Market Overview:

Global Pallets Market Size was valued at USD 64.3 Billion in 2023. The Pallets industry is projected to grow from USD 67.12 Billion in 2024 to USD 94.58 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.38% during the forecast period (2024 - 2032) according to a new report by IMIR Market Research.

Plastic pallet is a ready generic platform offering a textured sturdy surface and mechanical stability to preserve the quality of bulk goods. Grips are responsible for all operations related to the lifting, removal from one place to another, stacking, storage at the warehouse, and transportation of goods by land or sea. Pallets are structurally built as moving platforms that are commonly moved by mechanical devices like forklifts and pallet jacks and also front loaders to make it possible for the transportation of goods. Along with plastic pallets, both the food & beverage and pharmaceutical industries should give high prioritization to pallets that are generally resistant to chemical or even toxic contamination because the risk of chemical contamination is unusually high in such field.

In addition, Plastic pallets win over wooden pallets in few features that make them to be marketable among the fast-rising pallet types. Hence, companies can be recycled or converted into other manufacturing supplies at the manufacturers' option based on their requirement to reduce solid waste. Similarly, plastic pallets are very much demanded and popular because company products can be stored in them without getting the risk of termites or pests.

PVpallet, one of the plastics up-cycling innovator in pallets-makers world sector, is reusing discarded, recycled plastics and make pallets. The company debuted the first recyclable, reusable, adjustable, and collapsible pallet system in September 2022, which is designed for the safe and secure transportation of solar PV modules in solar PV modules. The pioneer ships from the company are anticipated to change the solar shipping industry in a way that will widely apply both efficiency and meaningfulness as the company start to utilize solar panels in the place of wood shipping pallets. Such activities are expected to facilitate the vote of confidence in plastic pallets thereby will increase the demand.

Over and above this, growing cross-border import and domestic demand for the agro-allied products like plastic pallets is fuelling the demand for plastic pallets. These pallets are moisture-free and also, they are not subjected to issues of infestation, fumigation, rotting and unpleasant smell absorption that wood pallets have. They can therefore be thoroughly and consistently sanitized with ease. These Pallets provide that extra level of assurance for industries that are subject to stringent professional and hygiene requirement such as food, drink and pharmaceutical.

This is in line with that same fact, and therefore, the rise of commodities outflow from India to other markets will amplify the development of the plastic pallets industry. In the Financial Year 2022, India exported marine products to a value of INR 579 billion (USD 7.05 billion) in the respect of the Directorate General of Commercial Intelligence and Statistics. Compared to other sector exports, the highest value contribution was from the marine product export in agriculture and allied sector. We progressed from non-basmati rice to sugar, and eventually, basmati rice and spices.

Plastic pallets, in addition to their robustness and load-bearing capabilities, are also sensitive to weather conditions and may not be suitable for very long-distance transportation. The cost of recyclable plastic pallets has also been a much higher compared to the cost of wooden pallets and recycled pallets. Enterprises, in one way or another, go ahead and compute potential costs using rental or reused materials as opposed to white wood to help them make the right decision regarding the pallets they intended to make. This might be the reason why the use of plastic pallets would be stood in the way of their development.

Market Dynamics: Market Drivers-

Global Trade and Logistics Growth

• The growth of global trade and the rising complexity of supply chains Lead to the demand for pallets as they form an integral part of efficient goods transportation and storage systems. The globalisation of markets resulted on expansion of international trade. Pallets are used extensively to handle and move goods in the cross-border shipping industry and therefore it is impossible to have a smooth flow of goods without these. The rise of e-commerce has stimulated the need for pallets as the businesses pursue better ways of sorting, relaying, and delivering products. Pallets are the key to organizing, transferring, and managing the goods in an e-commerce warehouse.

Automation and Technology Advancements

• Along with the rise of automation and technology, the industrial processes start to develop the need for pallets and end-of-line systems of a specific purpose. RFID and IoT technologies are utilized to track both the pallets as well as the goods that are on them so that their position and location at every moment in time can be monitored. This results in tighter inventory control, no loss, more visibility in the supply chain. Warehouses and distribution centers become more likely to adopt machinery, such as conveyors, robots, and stackers, to help with pallet handling. By doing so, these systems enable the pallets to move faster, lower down the labour cost and minimize the shipping errors.

Market Trends-

Increasing Demand for Plastic Pallets Across the Industry Verticals

• Pallets made of plastic are inflexible constructions that offer bulk items mechanical stability while handling in order to maintain quality. Handling includes all activities related to lifting, moving from one point to another, stacking, product storage, and long-distance transportation by land or sea. To help with the mobility of goods, plastic pallets are made to be movable by machinery like front loaders, pallet jacks, and forklifts. Plastic pallets are highly recommended in food & beverage, pharmaceutical, chemicals, and other industries, where the risk of chemical contamination is significantly high. Plastic pallets are among the most rapidly expanding pallet kinds available because they have a few advantages over wooden pallets. Since manufacturers can recycle them or melt and reform them into other manufacturing supplies, this option is popular among businesses looking to reduce waste. Plastic pallets have also risen in demand and popularity because they can store products without the risk of pests or termites.
• A company, PVpallet, which represents the market of pallets, has started recycling scrap plastic and making pallets out of the material. By September 2022, the company unveiled the PV module pallet system that is recyclable, reusable, adjustable and foldable considering its main function as shipping and packaging of solar PV modules. The aim is to dominate the solar shipping niche market by creating smart pallets using its own IP. High expectation is that the policy will increase the sales of the polypropylene pallets. Furthermore, plastic pallets became particularly popular due to the growing demand for international transfer (import-export) in the agricultural and interconnected sectors. These pallets do not sop up moisture or have issues like fumigation, rotting, pest infestation and its smell absorption that the wooden pallets do. However, they are very easy to clean and sanitize before reuse. In the case of food, beverage and pharmaceutical industries, the regulations are very strict thus making pallets highly preferred by them.
• In line with the same, the increasing export of commodities from India to other countries will propel growth for plastic pallets. According to DGCI&S, marine products worth INR 579 billion (USD 7.05 billion) were exported from India in the financial year 2022. Marine products export value was higher among agricultural and allied sector exports. This was followed by non-basmati rice, sugar, basmati rice, and spices.
• But plastic pallets are particularly vulnerable to sharp variations in weather and temperature, which reduces their usefulness for shipping. The cost of plastic pallets is also considerably higher compared to the cost of wooden and recycled pallets. Businesses ultimately alternate between calculating projected costs using rental, recycled, or whitewood materials to determine the best material for their pallets. This can obstruct the growth of plastic pallets.

Market Restraining Factors:

Environmental Concerns

• Although environmental sustainability is the main driver, the manufacturing process for some type of pallets, particularly the ones made from HW, can have negative environmental impacts. Working with the manufacturers and educated HVAC professionals can provide an invaluable expertise and will guarantee that the proper maintenance practices are being followed. Furthermore, favourable reimbursement scenarios and medical devices penetration context and customs duty enforcement in developing economies, as well as absence of suitable infrastructure in low- and middle-income countries are likely to constitute the key restraining factors in the market over the period of 2024-2032.
• The present global pallet market report includes knowledge regarding new recent developments, robotics and technology application in production for value chain optimization, market share, import-export analysis, production analysis, therapy, domain, local and global healthcare players impact, emerging revenue markets opportunity, change in healthcare policy, growth analysis, market size, social research and technological innovation in the healthcare market.

Key Companies in the Market:

• Menasha corporation
• Falkenhahn AG (Falkenhahn)
• Rehrig Pacific Holdings, Inc. (Rehrig Pacific)
• UFP Industries, Inc. (PalletOne)
• CABKA Group GmbH (CABKA)
• Millwood, Inc.
• Schoeller Allibert Services B.V. (Schoeller Allibert)
• Craemer Holding GmbH (CRAEMER)
• Brambles Limited
• LOSCAM International Holdings Co. Ltd. (LOSCAM)
• PECO Pallet, Inc.
• Cabka Group GmbH
• ORBIS Corporation
• Falkenhahn AG
• C.N Inc.

Key Industry Developments:

In March 2023, Craemer Holding GmbH has expanded its new plastic pallet production business Craemer UK. With this expansion, lead times were cut, customers received their orders more quickly, and transportation costs from Craemer's facility in Germany were eliminated. Additionally, there was a significant drop in CO2 emissions, which will be appealing to Craemer consumers in the UK.

In February 2023, KraftPal Technologies, a market leader in corrugated pallets, presented its innovative KraftPal corrugated pallets, an economical and sustainable alternative to conventional wooden pallets. The Company's pallets are the best option for businesses wishing to enhance logistics while lowering pallet prices and their environmental impact since they provide considerable benefits for transportation efficiency.

In August 2022, Silver Oak Services Partner's LLC portfolio company PLA and an asset-based pallet management services provider acquired TaylorMade Pallets & Logistics, one of the largest independently owned pallet companies in Central/South Texas. The acquisition of TaylorMade brought PLA's asset network to 77 facilities and expanded the Company's capacity and service capabilities within the South Texas market.

Market Segment Insights:

The market scope is segmented because of by Application, by Material, by Type, by End-user.

By Application

• Rental
• Non-rental

The pallets market overview for application segment is classified into rental and non-rental. Pallets that are sold with a purpose of further renting them to different end users are considered in this segment. Pallets on rental basis are an affordable option for consumers. The consumers need to pay for the pallets only till the time they use them. It helps in saving maintenance, replacement, administration, and transportation cost of the pallets. The non-rental pallets are the type of pallets for which customers get authority or ownership to purchase the pallets. In the case of non-rental pallets, customers do not need to sign an agreement and it does not include any monthly payment. Purchasing pallets cost more as compared to rental pallets due to maintenance, repairing, transportation, and ownership costs. The non-rental segment is expected to exhibit the largest revenue contributor during the forecast period and rental is expected to exhibit the highest CAGR share in the by application segment in the pallet market during the forecast period.

By Material

• Metal
• Wood
• Plastic via Injection Molding
• Plastic via Other Methods
• Corrugated Paper

The pallet market is categorized into wood, plastic via injection moulding, plastic via other methods, corrugated paper, and metal. Wooden pallets are manufactured using hardwood or softwood timber; however, pallet manufacturing wood differs according to region depending on the availability of trees for wood extraction. Softwood such as Douglas fir, pine, yew, and spruce are commonly used for pallet production, whereas maple, oak, teak, mahogany, teak, and walnut are a few hardwoods used for manufacturing of wooden pallets. Pallets manufactured using high-pressure injection moulding are made from high-density polyethylene (HDPE) or copolymer polypropylene resins. The melting temperature of the resin is maintained around 250°C, and the plastic is injected under high pressure into a mold. Plastic pallets manufactured using thermoforming, rotational moulding, and compression moulding are considered in this segment. In addition to being lightweight and environmentally friendly, corrugated paper pallets, also known as cardboard pallets or paper pallets, are a very effective substitute for wooden pallets.

Metal pallets are manufactured using stainless steel and aluminum. The wood segment is expected to exhibit the largest revenue contributor during the forecast period and plastic via injection moulding segment is expected to exhibit the highest CAGR share in the by material segment in the pallet market during the forecast period.

By Type

• Rackable
• Nestable
• Stackable
• Display

The pallet market is categorized into rackable, nestable, stackable, and display pallets. Rackable pallets are designed for handling heavy loads and mostly have a runner with a picture frame at bottom to offer high stability in racking operations. It is designed to hold a specified amount of weight in an open span racking system. Rackable pallets are available in wood and plastic materials. Nestable pallets have a nine-leg bottom, which allows it to gain grip or nest into other pallets. Nestable pallets are the most space-saving pallets compared to stackable and rackable pallets. Stackable pallets are often used in closed loop shipping and warehouse applications. The structure and design of the pallet allow the user to stack pallets on top of one another. Display pallets can be manufactured using wood, plastic, corrugated paper, or metal and find application in retail stores for application on floor display. The stackable segment is expected to exhibit the largest revenue contributor during the forecast period and the display and nestable segment is expected to exhibit the highest CAGR share in the by type segment in the pallet market during the forecast period.

By End-user

• Food and Beverage
• Chemical
• Retail
• Pharmaceutical
• Others

The pallets market is divided into food & beverage, chemical, retail, pharmaceutical, and others. The chemical industry uses specialised pallets that are resistant to corrosive and high-concentration chemicals, which might react with the pallet's substance and cause unanticipated harm. Thus, pallets used in the chemical industry have high-quality material and usually undergo practical trials to withstand harsh conditions in the industry. Pallets for pharmaceutical applications needed to have qualities that were both economical and hygienic. The others segment includes agriculture, metal & machinery, electronics, and construction industries. Agriculture and metal & machinery industries exhibit a high demand for pallets. Furthermore, the others segment is expected to exhibit the largest revenue share in the end-user industry segment in the pallets market during the forecast period. The pharmaceutical segment is expected to exhibit the largest CAGR during the forecast period.

Regional Snapshots:

Asia-Pacific Account for Significant Market Growth

The manufacturing sector can be considered as a cornerstone of the Indian economy since it is one of the major industries that ensure economic stability. The industrial sector of the country is an important source of income, comprising of the automotive industry, engineering stands, chemicals, pharmaceuticals and consumer durables which have all led to the country's manufacturing output. Domestic manufacturing industry in India has been seen to be one of the fastest-growing sectors in the region. The two most significant resource of the government include "Make in India" campaign to boost local manufacturing and draw foreign investments, and the investments in infrastructure are the main contribution to country's growth trajectory. The contribution to the manufacturing is caused by higher national demand, disposable income, which is increasing, the growth of the middle class and policy incentives by the government. India enjoys the demographic advantage given by a large high level skilled workforce which builds a platform for the manufacturing industry.

As per India Brand Equity Foundation (IBEF), the country expects to hit USD 1 trillion export mark by 2030 and is marching towards the recognition as the next big global manufacturing hub. Work force in manufacturing which is comprising of 17% of the nation's GDP and approximately 27.3 million workers, substantial role is played by industry in India as this supports the pallets market. In addition, India is a major agricultural export nation and its export value of the agriculture industry increased from USD 35.09 billion in 2020 to USD 50.21 billion in 2022.

In addition, the European Chemical Industry Council, Cefic, reports that China was the leading chemicals manufacturer with ` EUR 1,729 billion (USD 1893 billion) worth of chemical products produced in 2021, representing 43% of global chemical sales. In 2017, chemical sales in China exhibited a positive trend and grew by 11.9% since 2020. In the same manner, for example, UN COMTRADE data on international trade shows that China had USD 13.05 billion worth of exports of organic chemicals to India in 2022. However, these parameters points to the higher growth of the market for Pallets in the forecast period.

Since the region has been associated with investment, that harnessed the market's expansion. January 2021 saw Leading Enterprise in Advanced Pooling (LEAP India), a fund focused on infrastructure, getting a USD 25 million worth investment from Morgan Stanley India Infrastructure. LEAP India is a major player in the Indian pallet market segment. It aims at growing up the Company's assets, such as pallets, substantially sized folding containers, crates, and utility boxes, from 4 million units to 6 million units.

Pallets Market Report is also available for below Regions and Country Please Ask for that

North America

• U.S.
• Canada

Europe

• Switzerland
• Belgium
• Germany
• France
• U.K.
• Italy
• Spain
• Sweden
• Netherland
• Turkey
• Rest of Europe

Asia-Pacific

• India
• Australia
• Philippines
• Singapore
• South Korea
• Japan
• China
• Malaysia
• Thailand
• Indonesia
• Rest Of APAC

Latin America

• Mexico
• Argentina
• Peru
• Colombia
• Brazil
• Rest of South America

Middle East and Africa

• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest Of MEA

Points Covered in the Report:

• The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.
• The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 5 years data history and forecast.
• The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.
• Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.
• The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.

Key Questions:

• How much the global Pallets Market valued?
• Which region has the largest share in 2024 for the global Pallets Market?
• What are the driving factors for the market?
• Which is the leading segment in the global market?
• What are the major players in the market?

Research Scope of Market:

• Historic year: 2019-2022
• Base year: 2023
• Forecast: 2024 to 2032
• Representation of Market revenue in USD Million