by The pallet market encompasses products that are used for handling, storage, transportation and distribution of materials in various industries like food and beverage, pharmaceuticals, retail, and chemicals. Pallets provide efficiency in material handling activities by facilitating easy stacking, movement and storage of goods. They are quintessential for moving goods within warehouses and distributions centers and transporting them globally. Wood pallets have been conventionally used for centuries due to their durability and versatility. However, with growing concerns around deforestation, plastic and corrugated pallets are gaining prominence in the market. The introduction of customizable plastic, wooden and corrugated pallets with reinforced strength has expanded their use beyond physical transit to include final-product merchandising in stores.
The global pallet market is estimated to be valued at US$ 30.02 Mn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing E-commerce Industry – Mounting demand for home delivery of products across various categories like apparel, electronic goods, groceries etc. has fuelled the growth of the e-commerce industry globally. Pallets play a crucial role in the warehousing and shipping operations of e-commerce retailers. They facilitate efficient storage of inventory and transportation of goods from distribution centers to customers.
Material Handling Equipment Trends – Introduction of advanced machinery like motorized pallet trucks, automated palletization systems, robotic induction and pallet conveyor systems have streamlined material movement processes in warehouses and factory floors. Their growing adoption in the industrial and logistics sector is creating opportunities for pallet market.
Segment Analysis
The global pallet market is segmented into wood, plastic, metal, and corrugated & composite. Among these, the wood segment holds the largest market share of around 60% owing to its extensive usage in the transportation and logistics industry as it is inexpensive and 100% recyclable. The plastic segment is expected to witness the highest growth over the forecast period due to its advantages like durability, better load bearing capacity, longevity, and resistance to moisture and chemicals.
PEST Analysis
Political: Governments in various countries are supporting the logistics and warehousing industries through initiatives and investments which is positively impacting the pallet market. However, stringent environmental regulations can hamper the use of plastic and wood pallets.
Economic: Growth in the e-commerce industry, along with rising warehouse and inventory management activities are fueling the demand for pallets from industries like food and beverage, chemicals, pharmaceuticals, manufacturing, etc.
Social: Population growth and changing consumer behavior are leading to increased trade volumes globally. This is increasing the demand for efficient logistics and transportation of goods, thereby propelling the pallet market.
Technological: Advanced materials like plastic composites are being used to manufacture lightweight and durable pallets that can withstand heavy loads. RFID and GPS tracking technologies are also being integrated with pallets to enable real-time monitoring of shipments.
Key Takeaways
The Global Pallet Market Size is expected to witness high growth over the forecast period due to expansion of the logistics industry across regions. The global pallet market is estimated to be valued at US$ 30.02 Mn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030.
Regionally, North America captures the major share currently due to strong presence of logistics companies. Asia Pacific is identified as the fastest growing regional market with growing e-commerce and manufacturing activities in countries like China and India.
Key players operating in the pallet market are 3D Robotics, AeroVironment, Inc., DJI, Elbit Systems Ltd, General Atomics, GoPro, Inc., Israel Aerospace Industries, Lockheed Martin Corporation, Northrop Grumman Corporation, Parrot SA, Textron Inc., Boeing, Uvify Inc, and YUNEEC. These players are focused on adopting advanced technologies to manufacture pallets with better capabilities. For instance, DJI has launched pallet drones for industrial inspections.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
