Pallet Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 95.31 Billion |
| Market Size (2029) | USD 118.03 Billion |
| CAGR (2024 - 2029) | 4.37 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Pallet Market Analysis
The Pallets Market size is estimated at USD 95.31 billion in 2024, and is expected to reach USD 118.03 billion by 2029, growing at a CAGR of 4.37% during the forecast period (2024-2029).
The Pallets Market size is estimated at USD 95.31 billion in 2024, and is expected to reach USD 118.03 billion by 2029, growing at a CAGR of 4.37% during the forecast period (2024-2029).
- 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, advantages such as being environmentally friendly and lightweight and increasing awareness of reducing carbon footprint are propelling the demand for pallets in logistics and shipment companies as they are shifting from wood pallets to plastic pallets. Further, in June 2023, C&T Matrix introduced its customers to a new range of plastic pallets specifically tailored to the requirements of the packaging industry. With over 1,000 pallets sold since its launch, customers cite improved safety and hygienic production as key benefits.
- Moreover, due to its ability to handle heavy loads, the increasing demand for HDPE material in the automotive and shipping industry is boosting pallet demand. Also, disposable plastic pallets are widely used in the F&B industry as they resist 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 primary 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.
- However, Limiting availability and the high price of the raw materials for manufacturing pallets are anticipated to hinder 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 called for improvement. 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 pallet market companies restarted operations at full capacity, which is anticipated to aid in the market's recovery.
Pallet Market Trends
Increasing Demand for Plastic Pallets Across the Industry Verticals
- Plastic pallets are rigid structures that provide mechanical stability to bulk goods during handling to preserve 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 offer certain benefits over wooden pallets, which makes it 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.
- PVpallet, one of the players operating in the pallets market, is using discarded, recycled plastic to manufacture pallets. In September 2022, the company launched the first recyclable, reusable, adjustable, and collapsible pallet system specifically designed for shipping and protecting solar PV modules. The company aims to revolutionize the solar shipping industry efficiently and meaningfully by replacing traditional wood shipping pallets. Such initiatives are expected to boost the demand for plastic pallets.
- Further, increasing cross-border agricultural and allied sector import-export has helped boost the demand for plastic pallets. These pallets do not absorb moisture or have issues such as infestation, fumigation, rot, and odor absorption like wood pallets, and they can be easily and thoroughly cleaned between uses. These pallets are perfect for industries with regulatory and hygiene requirements, such as food, beverage, and pharmaceutical.
- 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.
- 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. This can hinder the growth of plastic pallets.
Asia-Pacific Account for Significant Market Growth
- The manufacturing industry plays a vital role in India's economic growth. Key sectors such as automotive, engineering, chemicals, pharmaceuticals, and consumer durables have significantly contributed to the country's manufacturing output. India's manufacturing industry has been projected to be among the fastest-growing sectors in the region. The government's initiatives, such as the "Make in India" campaign to boost domestic manufacturing and attract foreign investments, have contributed to this growth trajectory. Manufacturing sector growth is driven by increasing domestic consumption, disposable incomes, a growing middle class, and favorable government policies. Additionally, India's demographic advantage, with a large and young workforce, provides a strong foundation for the growth of the manufacturing industry.
- According to India Brand Equity Foundation (IBEF), India can export goods worth USD 1 trillion by 2030 and is on its path to becoming a major global manufacturing hub. With 17% of the nation's GDP and over 27.3 million workers, manufacturing plays a significant role in the Indian economy, supporting the growth of the pallets market. Further, India is an agricultural-centric country, and its export value of agriculture increased from USD 35.09 billion in 2020 to USD 50.21 billion in 2022.
- Moreover, according to Cefic, the European Chemical Industry Council, with EUR 1,729 billion ( USD 1893.34 billion) worth of chemicals produced, China was the largest chemicals producer in the world, contributing 43% of global chemical sales in 2021. During 2017, China experienced positive growth in chemical sales (even during COVID-19 )and has grown by 11.9% since 2020. Further, according to the United Nations COMTRADE database on international trade, China's exports of organic chemicals to India were USD 13.05 Billion in 2022. Such factors are anticipated to contribute to the growth of the Pallets market during the forecast timeframe.
- Furthermore, the region witnessed investment fueling the market's growth. In January 2021, Leading Enterprise in Advanced Pooling (LEAP India), a fund focusing on infrastructure, received a USD 25 million investment from Morgan Stanley India Infrastructure. A significant player in the nation's pallet pooling market is LEAP India. It focuses on increasing the company's assets, which include pallets, sizable foldable containers, crates, and utility boxes, from 4 million to 6 million units.
Pallet Industry Overview
The pallet 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 -
In January 2022, Kamps Inc., a pallet recycler and supplier, acquired Tritz Pallet, offering pallet recycling and full-service pallet solutions. The acquisition enhanced Kamps' physical footprint to over 40 asset-based locations solidifying its presence in the Great Plains region.
In 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 supplied containers and pallets to Geodis, providing its full range of ULD management solutions, including procurement, planning, logistics, repair, and digitalization.
Pallet Market Leaders
Falkenhahn AG
CABKA Group GmbH
CHEP (Commonwealth Handling Equipment Pool)
Palettes Gestion Services
PalletOne, Inc.
*Disclaimer: Major Players sorted in no particular order
Pallet Market News
- 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.
- 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.
Pallet Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Buyers
4.2.2 Bargaining Power of Suppliers
4.2.3 Threat of Substitutes
4.2.4 Threat of New Entrants
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of Impact of COVID-19 on the Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Demand for Plastic Pallets Across the Industry Verticals
5.1.2 Adoption of Pallets for Transportation Purpose
5.2 Market Restraints
5.2.1 Limiting Availability and High Cost of Raw Materials
6. MARKET SEGMENTATION
6.1 By Types
6.1.1 Wood
6.1.2 Plastic
6.1.3 Other Types
6.2 By End User
6.2.1 Transportation and Warehousing
6.2.2 Food and Beverage
6.2.3 Pharmaceutical
6.2.4 Retail
6.2.5 Other End Users
6.3 By Geography
6.3.1 North America
6.3.1.1 United States
6.3.1.2 Canada
6.3.2 Europe
6.3.2.1 United Kingdom
6.3.2.2 Germany
6.3.2.3 France
6.3.2.4 Italy
6.3.2.5 Spain
6.3.2.6 Rest of Europe
6.3.3 Asia Pacific
6.3.3.1 China
6.3.3.2 Japan
6.3.3.3 India
6.3.3.4 Australia
6.3.3.5 Rest of Asia Pacific
6.3.4 Latin America
6.3.4.1 Brazil
6.3.4.2 Argentina
6.3.4.3 Mexico
6.3.4.4 Rest of Latin America
6.3.5 Middle East and Africa
6.3.5.1 Saudi Arabia
6.3.5.2 South Africa
6.3.5.3 Egypt
6.3.5.4 Rest of Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Brambles Limited
7.1.2 CABKA Group GmbH
7.1.3 Craemer Holding GmbH
7.1.4 CHEP
7.1.5 Schoeller Allibert
7.1.6 Rehrig Pacific Company
7.1.7 Loscam International Holdings Co., Limited
7.1.8 UFP Industries, Inc.
7.1.9 MENASHA Corporation
7.1.10 Palettes Gestion Services (PGS) Group
7.1.11 World Steel Pallet Co., Ltd.
7.1.12 Falkenhahn AG
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Pallet Industry Segmentation
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 Pallet Market is segmented by Types (Wood, Plastic), End-User (Transportation & Warehousing, Food & Beverage, Pharmaceutical, Retail), and By Geography (North America (United States, Canada), Europe (United Kingdom, France, Germany, Italy, Spain), Asia-Pacific (China, Japan, India, Australia) Latin America (Brazil, Argentina, Mexico), The Middle East, and Africa (Saudi Arabia, South Africa, Egypt). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Types | |
| Wood | |
| Plastic | |
| Other Types |
| By End User | |
| Transportation and Warehousing | |
| Food and Beverage | |
| Pharmaceutical | |
| Retail | |
| Other End Users |
| By Geography | ||||||||
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Pallet Market Research FAQs
How big is the Pallets Market?
The Pallets Market size is expected to reach USD 95.31 billion in 2024 and grow at a CAGR of 4.37% to reach USD 118.03 billion by 2029.
What is the current Pallets Market size?
In 2024, the Pallets Market size is expected to reach USD 95.31 billion.
Who are the key players in Pallets Market?
Falkenhahn AG, CABKA Group GmbH, CHEP (Commonwealth Handling Equipment Pool), Palettes Gestion Services and PalletOne, Inc. are the major companies operating in the Pallets Market.
Which is the fastest growing region in Pallets Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Pallets Market?
In 2024, the North America accounts for the largest market share in Pallets Market.
What years does this Pallets Market cover, and what was the market size in 2023?
In 2023, the Pallets Market size was estimated at USD 91.14 billion. The report covers the Pallets Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Pallets Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What is driving the demand for Pallets Market?
The demand for Pallets Market is being driven by a) The increasing use of plastic pallets, their adoption for transportation b) The growing focus on reducing carbon footprint
Pallet Industry Report
The global pallets market is experiencing growth due to the rising adoption of material handling equipment across various industries, with pallet manufacturing companies focusing on creating lightweight, durable, and efficient products. Some companies are even incorporating innovative features such as attached RFID chips for tracking and tracing purposes. The market is segmented by material type, including wood, plastic, composite wood, metal, corrugated, and others. Wood pallets currently dominate the market share due to their strength and repairability, but the demand for plastic pallets is also on the rise due to their lightweight and durability properties. The warehousing and transportation sector is projected to hold the largest market share in the future, driven by the expanding transportation and logistics industry. The increasing demand for plastic pallets across various industries, coupled with a growing awareness to reduce carbon footprint, is expected to further fuel the global pallets market growth. Mordor Intelligence™ Industry Reports provide statistics for the Pallet's market share, size, and revenue growth rate, including market forecast and a historical overview. A sample of this industry analysis is available as a PDF download.
