The global plastic pallet market has been featured in “Plastic Pallets Market Size, Share & Trends Analysis 2023 – 2030,’ a new offering by ResearchAndMarkets.com.
The global market for plastic pallets is projected to expand to USD 11.20 billion by 2030, with a Compound Annual Growth Rate (CAGR) of 5.6% from 2023 to 2030.
According to the report, the international pallet market has experienced a significant increase in growth over recent years due to consistent expansion in global manufacturing activities. The rise of e-commerce has boosted logistics operations, consequently escalating the worldwide demand for pallets. In addition, the growing presence of organized retail is expected to further push the demand for pallets, which are extensively utilized in retail spaces for loading, unloading of heavy goods, and as a base for Point of Purchase (POP) displays.
Pallets are typically manufactured using materials such as wood, plastic, metal, and corrugated paper. Wood is the primary choice for many companies because of its high strength and cost-effectiveness. However, plastic pallets are predicted to experience increasing demand due to their light weight, easy cleaning, construction from recycled plastic, and their suitability for hygienic applications in the food and pharmaceutical sectors.
The food and pharmaceutical industries are the primary consumers of plastic pallets. These industries prioritize sanitation and safety, leading to a shift from wooden to plastic pallets. Within the processed food sector, plastic pallets are predominantly used for daily handling, storage, and transportation of large volumes of raw materials.
Several manufacturers are transitioning towards plastic pallet production. As an example, in November 2022, Avery Dennison Label and Packaging Materials decided to replace its original wooden pallets with plastic ones, aiming to decrease their supply chain’s carbon emissions by 819 tons annually. Moreover, plastic pallets can limit microbial damage to goods during transport, reducing waste.
HDPE, nestable style lead the way in global plastic pallet market
In 2022, the high-density polyethylene (HDPE) material segment dominated the global plastic pallet market, holding a massive 68.2% share. HDPE, known for its versatility and used in products like bottles, automotive parts, furniture, and construction items, is expected to maintain this lead until 2030.
The nestable pallet style seized the largest proportion of the market in 2022, holding a 43.7% value share. This type of pallet, while lightweight and easy to handle, is not suitable for heavy-duty tasks due to its lower strength compared to other types of pallets.
Asia Pacific emerged as a critical player in the global plastic pallet market, possessing the highest market share of 32.9% in 2022. The market in this region is predicted to grow at the quickest CAGR of 6.5% throughout the forecast period, driven by escalating product demand from manufacturing sectors in countries such as India, China, and Japan.
Despite the growing demand for plastic pallets in various industries, factors such as their high cost and sustainability concerns restrict their broader adoption. Wood pallets are approximately 33% cheaper than their plastic counterparts, according to ResearchAndMarkets.com.
In the U.S., a new 48″*40″ GMA wooden pallet is priced at USD 8-10, according to ResearchAndMarkets.com, while it cites a recycled one as costing about $4 to $5. In contrast, it suggests that a reusable plastic pallet of the same size costs between $20 to $25. Plastic pallets are made from petroleum-derived plastic resins like HDPE, PP, LDPE, whereas wood pallets are constructed from considerably less expensive softwood and hardwood lumber.
Further Reading
The U.S. Plastic Pallet Market in 2018
Achieving stability in a volatile wood market: introducing reusable plastic pallets
Relentless Transformation: a History of Plastic Pallets
Rick LeBlanc, EMBA, is the founder and editor of Reusable Packaging News (subscribe to the free newsletter) and editor of Western Pallet Magazine. A supply chain journalist with more than 30 years of experience, he specializes in pallets, reusable packaging, material handling and related operations. Rick is co-author of Pallets: A North American Perspective and Pallets & Progress: A Collected History of Pallets and Palletized Handling 1922–1945. He is also an advisory board member of the Virginia Tech Center for Packaging and Unit Load Design. Read Rick’s full bio.
