Allied Market Research published a report, titled, “Pallets Market by Type (Rackable, Nestable, Stackable, and Display), Material (Wood, Plastic via Injection Molding, Plastic via Other Methods, Corrugated Paper, and Metal), and End-user Industry (Food & Beverage, Chemical, Retail, Pharmaceutical, and Others): Global Opportunity Analysis and Industry Forecast, 2020–2027.” According to the report, the global pallet industry generated $79.00 billion in 2019 and is expected to generate $110.56 billion in 2027, witnessing a CAGR of 5.1% from 2020 to 2027.
Drivers, restraints, and opportunities
The rise of the e-commerce industry, increase in demand for plastic pallets and focus on sustainable pallet production drive the growth of the global pallets market. However, the surge in the price of wooden pallets hinders the market growth. On the other hand, the implementation of innovative technologies in the supply chain presents new opportunities in the coming years.
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- The production of different types of pallets was reduced due to the lockdown imposed in many countries. The hindrances in supply chain activities and shortage of raw materials also caused a delay in production.
- However, the demand for pallets increased from the e-commerce-based logistics for handling the increase in stock. The need for stacking and storing different products surged due to the stoppage of delivery and delay in orders.
The wood segment to maintain its lead position during the forecast period
Based on material, the wood segment accounted for the largest market share, accounting for nearly 88% of the global pallets market in 2019, and is expected to maintain its lead position during the forecast period. This is due to ease in availability of timber, less weight to load-carrying capacity ratio, and ease in manufacturing and repair. However, the plastic via injection molding segment is projected to manifest the largest CAGR of 8.8% from 2020 to 2027, owing to reduced costs incurred on damages and repairs along with its high resistance to mold and insects.
The stackable segment to maintain its leadership status during the forecast period
Based on type, the stackable segment accounted for the largest share, contributing to nearly half of the global pallets market in 2019, and will maintain its leadership status during the forecast period. This is due to its versatility that boosts its demand in warehousing applications. However, the display segment is projected to portray the highest CAGR of 6.1% from 2020 to 2027, owing to its features such as anti-slip technology, non-porous surface, and others.
Asia-Pacific, followed by Europe and North America, to maintain its dominance by 2027
Based on region, Asia-Pacific, followed by Europe and North America, held the highest market share in 2019, accounting for more than two-fifths of the global pallets market, and will maintain its dominance in terms of revenue by 2027. This is due to the rise in industrialization and logistic & warehousing activities in developing nations. However, LAMEA is projected to maintain its highest CAGR of 6.3% during the forecast period, owing to a rise in pharmaceutical, food & beverage, and other industries.