Pallets Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Pallets Market is segmented by Types (Wood, Plastic), End-User (Transportation & Warehousing, Food & Beverage, Pharmaceutical, Retail), and Geography.

Pallets Industry Overview

 Pallets Market Size
Study Period: 2018 - 2028
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 5.4 %

Major Players

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*Disclaimer: Major Players sorted in no particular order

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Pallets Market Analysis

The pallets market is anticipated to register a CAGR of 5.4% during the forecast period (2022 - 2027). As supply chains have become steady globally, customers demand greater transparency regarding how products and materials move through them. So the companies are embedding RFID chips directly into pallet materials, tracking and tracing individual pallets in real-time. Pallet tracking can help businesses manage recalls and expiration dates, minimizing product loss and getting items to their end-users efficiently and cost-effectively.

  • Surging demand for plastic pallets across industry verticals is expected to drive the market demand. In the past decades, wooden pallets have been used due to their strength and easy manufacturing process; however, due to certain disadvantages such as moisture absorption, less durability, and breakage of splinter, the demand for plastic pallets is growing. Additionally, owing to the advantages such as environment friendly, lightweight, and growing awareness to reduce carbon footprint is propelling the demand for pallets in logistic and shipment companies as they are shifting from wood pallets to plastic pallets.
  • Moreover, the increasing demand for HDPE material in the automotive and shipping industry, owing to its ability to handle heavy loads, is boosting the demand for pallets. Also, disposable plastic pallets are widely used in the F&B industry as they are resistant to organic and inorganic chemicals at normal temperatures.
  • The increasing adoption of pallets for transportation use is expected to drive the market in the forecast timeframe. Also, the major transport mode for cross-border trade is through waterways (shipping), contributing to ~90% of traded goods. This, in turn, indicates that oceans provide the main transport arteries for global trade. Furthermore, according to the Organization for Economic Cooperation and Development (OECD), maritime trade volumes are set to triple by 2050 as demand for global freight increases.
  • Limiting availability and the high price of the raw materials for manufacturing pallets are anticipated to hinder the market growth. As wooden pallets capture the market, price fluctuations challenge market growth. Also, rising lumber prices, trucking issues, and high demand contribute to the worldwide shortage of wood pallets, nearly doubling raw materials prices.
  • Additionally, the COVID-19 pandemic significantly impacted the hotel, tourism, manufacturing, and construction sectors. Manufacturing operations were suspended or limited. Globally, supply chains for the construction and transportation industries were hampered. This resulted in a decrease in both pallet production and market demand, which restrained the market's expansion. On the other hand, businesses are gradually returning to their normal production and services. The pallets market companies restart operations at full capacity, which is anticipated to aid in the market's recovery.

Pallets Industry Segments

A pallet is a flat panel supporting goods during transportation, mostly through wooden and plastic pallets. The major end-users of pallets include durable and non-durable goods manufacturers and non-manufacturing sectors such as food & beverages, retail, transportation & warehousing, etc.

The Pallets Market is segmented by Types (Wood, Plastic), End-User (Transportation & Warehousing, Food & Beverage, Pharmaceutical, Retail), and Geography.

Types
Wood
Plastic
Other Types
End-User
Transportation & Warehousing
Food & Beverage
Pharmaceutical
Retail
Other End-Users
Geography
North America
Europe
Asia Pacific
Latin America
Middle East and Africa

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Pallets Market Trends

This section covers the major market trends shaping the Pallets Market according to our research experts:

Increasing Demand for Plastic Pallets Across the Industry Verticals

  • Plastic pallets are rigid structures that provide mechanical stability to a bulk quantity of goods during handling to preserve their 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. Plastic pallets are designed to be moveable by equipment such as forklifts, pallet jacks, and front loaders to facilitate the mobility of goods. Plastic pallets are highly recommended in food & beverage, pharmaceutical, chemicals, and other industries, where the risk of chemical contamination is significantly high.
  • Moreover, Plastic pallets are one of the fastest-growing pallet types on the market. 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.
  • The most common material used to mold plastic pallets is HDPE. HDPE dominated the market for the year 2021. The dominance was attributed to extensive availability and sturdy nature. Milk jugs are the single most significant use of HDPE. It is also very inexpensive compared to other plastics, especially recycled resin. PP pallets are the second most widely-used plastic pallets after HDPE. They are more rigid and substantial than HDPE but have lower impact resistance. They are also compatible with most chemicals. However, they are more expensive than HDPE.
  • On the other hand, Wood pallets are highly susceptible to moisture and pose a risk of sheltering bacteria, pests, or fungi, damaging stacked food and pharmaceutical goods. In the age of COVID-19, that has taken on even greater significance, at least in the public mind. Logistics and shipment companies are shifting toward plastic pallets because of their advantages, such as being lightweight and reusable.
  • However, plastic pallets are also susceptible to drastic changes in temperature and weather, making them less effective during transportation. 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.
Pallets Market

Asia Pacific Account for Significant Market Growth

  • India's expanding manufacturing sector is one of the main drivers of the country's pallet market growth. The Indian government offers industry-specific subsidies to promote manufacturing. These actions will benefit India's manufacturing industry. The volume of various products manufactured will increase as the manufacturing sector expands, directly affecting the demand for pallets.
  • China has also experienced growth in online shopping, and the number of online shoppers in China has reached more than 842 million in 2021. Also, according to the National Bureau of Statistics of China, the Gross merchandise volume (GMV) of China's online shopping market has reached CNY 13.09 in 2021 from CNY 3.88 in 2015. This has caused a surge in shipping, propelling the demand for pallets in China to export and import goods.
  • The square pallet (1100mm x 1100mm) and the rectangular pallet (1200mm x 1000mm) are the two most common pallet sizes in Asia, and ISO approves both. On the other hand, the 1200mm x 1000mm pallet is more appropriate for export from Asia-Pacific to Europe and the United States because these dimensions fit well with both regions' systems.
  • Furthermore, the region also witnessed investment augmenting the market's growth. For instance, in January 2021, Morgan Stanley India Infrastructure, an infrastructure-focused fund, invested USD 25 million in LEAP India(Leading Enterprise in Advanced Pooling). LEAP India is a key player in the pallet pooling segment of the country. It focuses on expanding the company's assets from 4 million to 6 million units, including pallets, large foldable containers, crates, and utility boxes.
Pallets Market

Pallets Market Competitor Analysis

The pallets market is fragmented due to the presence of several small and large manufacturers. The increased trade between countries is boosting the growth of corrugated pallets as sustainable packaging.Key players are Falkenhahn AG, CABKA Group GmbH, CHEP, etc. Recent developments in the market are -

  • November 2021 - Kraftpal, a manufacturer of durable, lightweight, and recyclable pallets, became one of the proponents of developing corrugated cardboard pallets that meet industry standards of legacy wooden pallets aiming to eliminate the use of wood in the mainstream logistical pipelines. This move by Kraftpal is expected to get the ball rolling for the paradigm shift toward sustainable solutions in the studied market.

Pallets Market Top Players

  1. Falkenhahn AG

  2. CABKA Group GmbH

  3. CHEP (Commonwealth Handling Equipment Pool)

  4. Palettes Gestion Services

  5. PalletOne, Inc.

*Disclaimer: Major Players sorted in no particular order

Falkenhahn AG, CABKA Group GmbH, CHEP (Commonwealth Handling Equipment Pool), Palettes Gestion Services, PalletOne, Inc.

Pallets Market Recent Developments

  • January 2022 - Geodis, a supply chain provider, announced that it entered into a five-year unit load device (ULD) supply, management, and repair agreement with Unilode Aviation Solutions. Unilode supplies containers and pallets to Geodis and provides its full range of ULD management solutions, including procurement, planning, logistics, repair, and digitalization.
  • January 2022 - Kamps Inc., a pallet recycler and supplier, acquired Tritz Pallet, a company also offering pallet recycling and full-service pallet solutions. The acquisition enhances Kamps’ physical footprint to over 40 asset-based locations solidifying its presence in the Great Plains region.

Pallets Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Increasing Demand for Plastic Pallets Across the Industry Verticals

      2. 4.3.2 Adoption of Pallets for Transportation Purpose

    4. 4.4 Market Restraints

      1. 4.4.1 Limiting Availability and High Cost of Raw Materials

    5. 4.5 Value Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Types

      1. 5.1.1 Wood

      2. 5.1.2 Plastic

      3. 5.1.3 Other Types

    2. 5.2 End-User

      1. 5.2.1 Transportation & Warehousing

      2. 5.2.2 Food & Beverage

      3. 5.2.3 Pharmaceutical

      4. 5.2.4 Retail

      5. 5.2.5 Other End-Users

    3. 5.3 Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia Pacific

      4. 5.3.4 Latin America

      5. 5.3.5 Middle East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Falkenhahn AG

      2. 6.1.2 CABKA Group GmbH

      3. 6.1.3 CHEP (Commonwealth Handling Equipment Pool)

      4. 6.1.4 Palettes Gestion Services

      5. 6.1.5 PalletOne, Inc.

      6. 6.1.6 Schoeller Allibert Group B.V.

      7. 6.1.7 The Corrugated Pallets Company

      8. 6.1.8 ORBIS Corporation

      9. 6.1.9 Craemer Holding GmbH

      10. 6.1.10 Rehrig Pacific Company, Inc.

      11. 6.1.11 World Steel Pallet Co.,Ltd

      12. 6.1.12 Arrington Lumber & Pallet Co. Inc.

      13. 6.1.13 LCN, Inc.

      14. 6.1.14 Loscam Australia Pty Ltd

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
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Pallets Market Research FAQs

The Pallets Market is studied from 2018 - 2028.

The Pallets Market is growing at a CAGR of 5.4% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2018 - 2028.

North America holds highest share in 2021.

Falkenhahn AG, CABKA Group GmbH, CHEP (Commonwealth Handling Equipment Pool), Palettes Gestion Services, PalletOne, Inc. are the major companies operating in Pallets Market.

Pallets Industry Reports

In-depth industry statistics and market share insights of the Pallets sector for 2020, 2021, and 2022. The Pallets research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Pallets report PDF.

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