Pallets Market Size

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.