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The rising adoption of material handling equipment across industries is one of the primary factors driving the global Pallets Market. Fortune Business Insights in a new study, titled “Pallets Market: Global Market Analysis, Insights and Forecast, 2019-2026” finds that pallet manufacturing companies are increasingly focusing on developing durable, efficient, and lightweight products for its end-users. The global market was worth US$ 59.91 Bn in the year 2018 and is anticipated to exhibit a CAGR of 5.1% between 2018 and 2026. Furthermore, the global market is expected to reach US$ 88.69 Bn by 2026.
Among different types of pallets, wooden pallets were adopted earlier owing to their easy manufacturing process and high strength. Moreover, this type held 86.5% of the global market in 2018. These pallets are repairable but at the same time, they have disadvantages such as cleanliness issues and lesser durability. Furthermore, these pallets lack moisture absorption and break easily. Certain guidelines must be followed in case of wooden pallets to inhibit the spread of insects and diseases. One such regulation is the International Standards for Phytosanitary Measures No. 15 or ISPM 15.
Now, plastic pallets are preferred over wooden pallets as they are eco-friendly and lightweight. In addition to this, these pallets can be recycled, reused, and are easy to clean. These properties attract users to invest in plastic pallets. Also, plastic pallets emit fewer carbon emissions than wooden pallets, which fuels their demand. The rising awareness about the reduction in carbon footprint across the world is likely to drive this segment in the forthcoming years.
Brambles Ltd., ORBIS Corporation, PECO Pallet, Inc., Craemer Holding GmbH, Cabka Group GmbH, PalletOne, Inc., Loscam Australia Pty Ltd, Schoeller Allibert Group B.V., L.C.N Inc., Falkenhahn AG are some of the leading players operating in the global pallets market. Companies in the MEA are continuously focusing on their products to strengthen their market presence. For instance, a company called Takween Advanced Industries in Saudi Arabia is focusing primarily on developing innovative plastic pallets by adopting several technologies such as blow moulding, injection moulding and others to strengthen its market presence. Another company called CHEP with the help of new technologies developed plastic pallets to offer lightweight and environmental-friendly products across multiple industries, such as food and beverages and pharmaceuticals.
Introduction of novel technologies and automation processes in manufacturing pallets is driving the pallet market. The rising disposable income of people encourages them to spend heavily on housing infrastructure. This, in turn, is expected to propel growth in the market. Pallet manufacturers are increasingly using pallets to enhance operational efficiency and eliminate solid waste. This is further positively impacting the growth of the market. Recent developments in the logistics and transportation sector, especially in developed nations, have fueled demand for pallets. Moreover, this sector is demanding smart pallets to effectively trace the pallet flow for accurate management. Radio frequency identification or RFID enabled real-time tracking of pellets, helping consumers to effectively measure the humidity, impact, and temperature, especially in food & beverages.
The Middle East & Africa (MEA) market was valued at US$ 6.18 billion in the year 2018. The demand for plastic pallets in this region is expected to grow during the forecast period. Countries in MEA are using recycled products in order to supplement the reduction of plastic wastes. For instance, Saudi Arabia recently adopted novel technologies for waste recycling management. Moreover, the country produces around 15 million tons of municipal waste every year. Furthermore, the country is planning to adopt new technologies to reproduce and recycle plastic products and use them for several purposes.
The market in Asia Pacific is expected to witness considerable growth in the forecast years. This is mainly ascribable to the rising adoption of plastic and wooden pallets in the region. These pallets are used to imports and exports goods from one location to another. Countries such as China and India are likely to create attractive growth opportunities for the pallets market during the projected horizon.
By Material Type
· Composite Wood
· Warehousing & Transportation
· North America (USA and Canada and Rest of North America)
· Europe (UK, Germany, France, Italy, Spain, Scandinavia and Rest of Europe)
· Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
· Latin America (Brazil, Mexico and Rest of Latin America)
· Middle East & Africa (South Africa, GCC and Rest of the Middle East & Africa)