by The global Pallet Market is estimated to be valued at US$ 57.0 Billion in 2022 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The pallet market consists of wooden, plastic and corrugated pallets used for material handling across various industries. Pallets are widely used for transportation and storage of goods across diverse industries such as food and beverage, pharmaceutical, chemicals and manufacturing. They provide advantages such as improved productivity, reduced labor costs, safer handling and storage of goods. With growing e-commerce industry and increasing global trade, need for efficient logistics and supply chain has increased, driving higher demand for pallets.
Market key trends:
One of the key trends in the pallet market is growing preference for recyclable and reusable plastic pallets over wood pallets. This is mainly due to sustainability concerns over use of wood and its disadvantages such as breakage, damage and contamination. Plastic pallets are more durable, lighter in weight and can withstand harsh weather conditions. They also don’t require fumigation or pest control. Leading pallet providers such as Brambles Limited are focusing on recycled plastic pallets to meet sustainability goals of end use industries. For example, Brambles’ iC platform was designed with sustainability in mind, using recycled content in the plastic resin as well as being fully recyclable at the end of the product’s lifecycle.
Porter’s Analysis
Threat of new entrants: The pallet market requires high initial investment and has economies of scale give advantage to established players. New entrants face significant threat.
Bargaining power of buyers: Large buyers like retailers have significant bargaining power due to bulk purchasing ability. They can negotiate on price and demand better services.
Bargaining power of suppliers: Major wood suppliers have consolidated structure globally reducing supplier bargaining power. Plastic resins also have large suppliers controlling prices.
Threat of new substitutes: No direct substitute exists for wooden pallets. Plastic pallets pose stiff competition. Technological advancement can introduce new substitute materials.
Competitive rivalry: The pallet market comprises few large players and many small regional players. Intense competition exists on pricing and innovation.
Key Takeaways:
The global Pallet Market Share is expected to witness high growth, exhibiting CAGR of 5.9% over the forecast period, due to increasing adoption in food and beverage and automotive industries.
Regional analysis: The US dominates the pallet market owing to large presence of manufacturing industry. Europe follows US in market size due to stringent regulations around pallet material usage. Asia Pacific is the fastest growing region driven by expansion of industrial and logistics sectors in major economies like China and India.
Key players: Key players operating in the pallet market are Brambles Limited, LOSCAM, Rehrig Pacific Company, CABKA Group, PECO Pallet Inc, The Corrugated Pallet Company, Falkenhahn AG, Millwood Incorporation, Litco International Inc, and Schoeller Allibert. Brambles Limited is the global leader with wide geographic presence and strong supply chain integrationcapabilities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
