Global Market Study on Pallets: Plastic Material Type Segment Projected to Register the Highest CAGR During 2017 - 2025
Global Market Study on Pallets: Plastic Material Type Segment Projected to Register the Highest CAGR During 2017 - 2025
Wood pallets continue to dominate the market owing to the associated low costs
Wood is the most preferred material for pallets across the globe, as it offers huge advantages in terms of response time and low startup cost for customized designs. Wooden pallets sometimes end up with sharp splinters causing injuries or protruding nails that damage food packaging. But due to the low costs, wood pallets will continue to dominate product sales in most areas across the globe. However, wood pallets these days are largely being replaced with plastic pallets. As food safety compliance and reusability is a growing attraction among manufacturers, they are looking for sustainable material handling options and thus, plastic pallets will continue to gain acceptance in a range of industries including foods & beverage, pharmaceuticals, groceries and automotive.
Tier 3 key players contribute around 90% revenue share in the global pallets market
There are uncountable small players engaged in the manufacturing of pallets. This makes the pallet market highly fragmented. There are a large number of small players involved in the manufacturing of wooden pallets. Wooden pallets hold significant share in the global pallets market and a majority of pallet manufacturers fall in the Tier 3 category. Key players such as Falkenhahn AG, Edwards Timber Company, Inc., and World Steel Pallet Company Ltd. collectively hold about 75%-90% of the global pallets market share.
Rising demand for alternative pallet types anticipated to boost the growth of plastic pallets in the global pallets market
Non-wood pallets are likely to experience a massive increase in demand across the globe. Among these, plastic pallets are expected to be the most attractive option. The major reason behind the increase in popularity of and demand for plastic pallets is due to the ease with which these can be cleaned. In addition, they are made of recycled materials. This is a very attractive benefit for companies working towards becoming more environment friendly. This factor is creating a positive impact on the plastic pallets market.
Another factor which is driving the growth of plastic pallets is the adoption of pallets by new users. The pallet utilization in various regions across the globe is typically low compared to the size of their manufacturing, warehousing, and construction sectors. However, in the coming years, greater number of potential pallet users will strive to become more competitive on a global scale by improving operating efficiencies and reducing product damage in shipments through the use of pallets.
The increase in trade volume especially in the MEA region is also anticipated to fuel the growth of the plastic pallets market. GCC countries are located in between the Far East and Europe. Attributing to their location, these countries can be considered as the gateway to the world’s most progressive markets such as India and China. The transport and logistics sector in the Middle East region is showing substantial growth rates with a long-term positive outlook. The plastic pallets market is thus expected to witness significant growth and is a vital link in supply chain and storage.
With a huge incremental opportunity, the global pallets market is projected to grow at more than 5% CAGR during the period of assessment
During the period 2012 – 2016, the global pallets market expanded at a CAGR of 4.7%. However, during the forecast period – that is between 2017 and 2025 – the market is anticipated to grow at a CAGR of 5.4% owing to increasing demand for better and safe transportation coupled with the rise in demand for pallets from various industries like food, agriculture, chemicals etc. The global pallets market is projected to represent incremental opportunity of more than US$ 25 Bn between 2017 and 2025.
