Huge increase in product demand creates heavy lift for wood and plastic pallets
Trends Influencing the Pallet Market
The unprecedented growth in the e-commerce industry is one of the major factors driving the demand for pallets, globally. The COVID-19 pan
demic has assisted the population to depend on e-commerce platforms, especially in developing countries including India, Brazil, and others. The growth in e-commerce has created challenges for supply chains to upgrade logistics and transportation services to enhance the existing devices and products including pallets.
Hence, the rise in the e-commerce industry is expected to boost the demand for pallets, which in turn drives the growth of the pallet market. Moreover, an increase in demand for plastic pallets owing to rising awareness regarding the benefits of plastic pallets within the consumers is driving the growth of the pallets market. Plastic pallets offer better handling during transportation.
In addition, plastic pallets are highly recommended in food & beverage, pharmaceutical, chemicals, and other industries, where the risk of chemical contamination is significantly high. Further, plastic pallets can also be used in cleanroom applications as they can be easily cleaned and sanitized. Such factors are driving the growth of plastic pallets in the pallets industry.
However, the surge in the price of lumber is a major restraint for the growth of the pallets market. Wooden pallets garner a high share in the pallets market. However, the propel in prices as well as utilization of wood while maintaining environmental sustainability has caused hindrances in the growth of the pallets market.
On the contrary, the adoption of new technologies in the supply chain such as the use of RFID tags, automation, and robotics is expected to boost the demand for developed pallet products during the forecast period.
The global pallets market is segmented based on type, material, end-user industry, and region. By type, it is categorized into rackable, nestable, stackable, and display pallets. By material, it is classified into the wood, plastic via injection molding, plastic via other methods, corrugated paper, and metal. By end-user industry, it is categorized into food & beverage, chemical, retail, pharmaceutical, and others.
The global pallets market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, Spain, Italy, and the rest of Europe), Asia-Pacific (China, Japan, India, Indonesia, and the rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). Asia-Pacific is expected to hold the largest market share throughout the study period; however, LAMEA is expected to grow at the fastest rate.