Pallets Market Expected to Reach $130.5 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Pallets Market," The pallets market size was valued at $57.4 billion in 2010, and is estimated to reach $130.5 billion by 2032, growing at a CAGR of 4.1% from 2023 to 2032.

A pallet is a platform or a support for boards to stack loads upon them. Pallets are manufactured using plastic, wood, metal, and corrugated paper. They are considered as a tertiary form of packaging and are a mandatory part of nearly all industrial supply chains and warehousing. Moreover, they are used as a base for stacking, storing, transporting, and protecting materials, which are later transported using material handling equipment. Further, the standard sizes of pallets differ within different regions and countries.

In addition, key market players are expanding their business to increase its production capacity and customer reach. For instance, In July 2020- Menasha, through its subsidiary ORBIS Corporation, opened a new ORBIS RPM service center in Winston-Salem, North Carolina, U.S. The ORBIS Reusable Packaging Management (RPM) is a global supply chain company engaged in cleaning, repair, management, and replenishment of reusable layer pads, plastic pallets, and top frames. The expansion is aimed at offering efficient shipping, operating, and repairing using automated processes. Such instances are expected to support pallets market share growth.

However, the rise in prices of wooden pallets acts as a major restraint of the pallets industry. In addition, materials used for the manufacturing of pallets are difficult to recycle and reuse. Thus, it generates substantial waste and can cause environmental pollution. Moreover, high cost is required to set a system for recycling of plastic pallets. Furthermore, key market players are taking efforts to reduce their carbon footprint by upgrading their manufacturing processes. For instance, in March 2023, Craemer Holding GmbH has expanded its new plastic pallet production business Craemer UK. With this expansion, lead times were cut, customers received their orders more quickly, and transportation costs from Craemer's facility in Germany were eliminated. Additionally, there was a significant drop in CO2 emissions, which will be appealing to Craemer consumers in the UK

In addition, the outbreak of COVID-19 has led to halt in logistic and manufacturing activities across the globe, which, in turn, has led to interruption of supply chain, thereby hindering growth of the pallets market. However, this situation is expected to improve as the government is relaxing norms around the world for resuming business activities.

Furthermore, the growth in the e-commerce industry has surged the demand for pallets significantly. Inclination of people toward e-commerce, especially during the COVID-19 pandemic, is further expected to create lucrative opportunities for pallet manufacturers as well as logistic companies. Automation of supply chain and logistic systems can propel the demand for pallets with radio frequency identification (RFID) tags, bar codes, and other technologies. For instance, in September 2020, Menasha, through its subsidiary ORBIS Corporation, launched a new Odyssey pallet. The Odyssey rackable pallet is designed for heavy-duty racking applications and holds more than 2,800 pounds in unsupported racking. The product is available in 40 x 48 inches size and also includes optional molded-in frictional elements and steel reinforcements. This is expected to drive the pallets market growth significantly.

The global pallets market is segmented into material, type, application, end-user industry, and region. By material, the market is classified into wood, plastic via injection molding, plastic via other methods, corrugated paper, and metal. Depending on type, it is categorized into rackable, nestable, stackable, and display pallets. On the basis of application, it is fragmented into rental and non-rental. As per end-user industry, it is segregated into food & beverage, chemical, retail, pharmaceutical, and others.

Region wise, the global pallets market analysis is conducted across North America (the U.S., Canada, and Mexico), Europe (Germany, France, Spain, Italy, and rest of Europe), Asia-Pacific (China, Japan, India, Indonesia, Malaysia, Thailand, Vietnam, Cambodia, Lao, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa).

The major players profiled in the pallets market report include Brambles Limited, CABKA Group GmbH (CABKA), Craemer Holding GmbH (CRAEMER), Falkenhahn AG (Falkenhahn), LOSCAM International Holdings Co., Ltd. (LOSCAM), Menasha Corporation, Millwood, Inc., Rehrig Pacific Holdings, Inc. (Rehrig Pacific), Schoeller Allibert Services B.V. (Schoeller Allibert), and UFP Industries, Inc. (PalletOne).

Key findings of the study

• The report provides an extensive analysis of the current and emerging global pallets market trends and dynamics. 
• Depending on material, the wood segment was the largest revenue generator in 2022.
• By type, the stackable segment generated the highest revenue in 2022.
• Depending on application, the non-rental segment dominated the market in 2022.
• On the basis of end-user industry, the others segment dominated the market in 2022.
• Region wise, Asia-Pacific is anticipated to dominate the global pallets market throughout the study period.
• The report provides an extensive analysis of the global pallets market trends and emerging opportunities of the market. 
• The global pallets market forecast analysis from 2023 to 2032 is included in the report.