Based on the numbers obtained from a market survey by FMI, the global pallets market reached a valuation of USD 58.3 billion in 2022. In the current year 2023, the overall market value is estimated to reach USD 60.4 billion. This analysis report by FMI further predicts the market to expand at 5.3% CAGR over the forecast period. By the end of this forecast period in 2033, the net valuation is anticipated to reach up to USD 100.6 billion.
The report indicates that plastic pallets might emerge as the most preferred pallets, with sales accounting for 41% of the total market share.
Agricultural firms and farmers are investing in pallets to ensure safe and contamination-free product handling during transit, which is expected to augment the growth in the market. Due to the increasing demand for pharmaceuticals and health supplements, North America currently dominates the market.
The United States and Canada may emerge as significant pockets due to the presence of well-established food and beverage, construction, and pharmaceutical sectors.
| Attributes | Details |
|---|---|
| Global Pallets Market Valuation in 2022 | USD 58.3 billion |
| Estimated Global Market Share in 2023 | USD 60.4 billion |
| Forecasted Global Market Size by 2033 | USD 100.6 billion |
| Projected Global Market Growth Rate from 2023 to 2033 | 5.3% CAGR |
| Market Share of Top 3 Countries | 32.1% |
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Demand in the pallets market grew at a 5.2% CAGR between 2018 and 2022. Expansion of the e-commerce sector and the logistics sector is expected to drive sales in the market at a 5.8% CAGR over the assessment period.
The demand for logistics services is being driven by increasing sales on online channels, great internet penetration, and the expanding e-commerce industry, which in turn is boosting the pallet market across the globe.
Manufacturers are investing in research and development to integrate technological advancements into pallet production. For instance, they are launching multiple trip pallets to reduce expenses and improve operational effectiveness.
Plastic pallets' reusability and recycling make them an ideal solution for numerous packing operations. They are sustainable, even though they are made of non-biodegradable material. Growing government emphasis on reusing and recycling packaging items, as well as rising consumer awareness of sustainability is expected to boost sales in the forthcoming years.
The availability of lumber is determined by the growing demand for high-quality timber. The building and construction sector utilizes a large portion of softwood output. Much of the production of hardwood is driven by the furniture and wood flooring businesses.
Lumber production drops in tandem with slow production in these sectors. As a result, the availability of raw materials used to create pallets reduces, and the price rises. However, the expansion of the e-commerce and the packaging industry is expected to propel sales in the market over the forecast period. Pallets are essential for packaging and securing various items to prevent damage during transit.
Increasing adoption of flexible packaging solutions, along with growing export and import activities across the globe are key factors expected to drive the market over the forecast period.
Principal Consultant
| Regional Market Comparison | Global Market Share in Percentage |
|---|---|
| North America | 24% |
| Europe | 32.4% |
Players in the E-commerce Industry Prefer Wooden Pallets
Growing demand for pallets from the pharmaceutical industry is expected to place the country as an attractive market in the forthcoming years. This is also due to the rising prevalence of lifestyle disorders in the country, such as obesity and diabetes.
Pallets are used in the pharmaceutical industry because they reduce product contamination. To minimize the risk of contamination and product wastage, medicine and health supplement manufacturers are using pallets. Apart from that, increasing demand for pallets from the food & beverage, construction, and electronics sectors is expected to fuel sales at a 3.8% CAGR over the assessment period.
| Regional Market Comparison | Global Market Share in Percentage |
|---|---|
| The United States | 20.9% |
| Germany | 3.8% |
| Japan | 4.3% |
| Australia | 1.8% |
Growing Preference for Online Retail in India is Driving Sales of Plastic Pallets
The significant growth of the manufacturing industry in India driving sales in the pallet market. Increasing demand for flexible packaging solutions, along with the expansion of the warehousing industry is expected to boost sales at a 5.8% CAGR over the forecast period.
Improvements in supply chain management and the growing adoption of technologically advanced packaging technologies might continue spurring demand in India market in the forthcoming years.
| Regional Markets | CAGR (2023 to 2033) |
|---|---|
| The United Kingdom | 3.3% |
| China | 6.8% |
| India | 5.9% |
Technological Advancements in the Packaging Sector are Going to Fuel Plastic Pallets Sales
Based on the material, sales in the plastic pallets segment are estimated to account for almost 40% of the total market share. Pallet tracking has become efficient thanks to the development of active tracking technologies like RFID tags and Bluetooth, as well as the Internet of Things (IoT).
The demand for plastic pallets is expected to grow in the forthcoming years as a result of technological advancements. FMI has forecasted the segment to expand at a 6.5% CAGR over the assessment period.
| Category | By Material Type |
|---|---|
| Top Segment | Plastic Pallets |
| Market Share in Percentage | 37.7% |
| Category | By Product Type |
|---|---|
| Top Segment | Nestable |
| Market Share in Percentage | 41.6% |
Increasing Adoption of Shipping Pallets is Driving Sales of Nestable Pallets
In terms of product type, sales in the nestable pallet segment are predicted to hold 43% of the total market share over the forecast period. As they can be nested into each other, they take up less room during return freight and are cost-effective as compared to other pallets. They are also differently prized based on the quality & durability of the material, making them excellent for export and open-loop supply chain applications.
Growing Demand from the Food & Beverage Sector is Boosting Sales of Mini Pallets
As per FMI, applications in the food and beverage sector are projected to remain high over the assessment period. Agricultural companies and farmers are investing in packaging solutions that improve the storage, handling, and transportation of fresh produce.
Demand in the bakery, dairy, beverage, meat, and other food processing companies is also expected to increase, which in turn might drive the market over the forecast period.
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As a result of the existence of various small and key manufacturers, the global pallets market is highly fragmented and is expected to become extremely competitive in the coming days.
Raw resources for making wood pallets are getting expensive and scarce day by day, which is expected to impede market expansion and encourage the use of polymer pallets. In addition, the cost of basic supplies has nearly doubled due to increased lumber costs, shipping problems, and excessive demand.
Market players now expect openness regarding the flow of goods and resources via supply networks since they have grown stable on a global scale. It may assist companies in managing recalls and expiry dates, avoiding product damage, and cost-effectively while delivering goods to their final customers. Moreover, to track and trace supplied pallets in real-time, businesses are directly integrating RFID chips into the materials used to make pallets.
Recent Developments by the Pallet Manufacturing Industries
Corrugated pallet use as ecological packaging is increasing as international trade is growing and this could encourage the leading manufacturers to shift their business models. Such a paradigm shift toward sustainable solutions in the market is anticipated to occur with an initiative by Kraftpal. For instance,
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | Value in USD million or billion and Volume in Units |
| Key Countries Covered | The United States of America, Canada, Brazil, Mexico, Germany, Italy, France, the United Kingdom, Spain, Russia, China, Japan, India, GCC countries, and Australia |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; the Middle East & Africa; and Oceania |
| Key Segments Covered | By Product Type, By Material Type, By End Use, and By Region |
| Key Companies Profiled | DS Smith Plc.; Smurfit Kappa Group; Conitex Sonoco; Oji Holdings Corporation; Multi-wall Packaging; KraftPal Technologies Ltd.; Europal Packaging; Tat Seng Packaging Group Ltd.; Dopack; Interpal Industries Pte Ltd.; Pheng Hoon Honeycomb Paper Products Pte. Ltd.; Mabuchi Singapore Pte Ltd.; The Alternative Pallet Company Ltd.; Kimmo (Pty) Ltd.; Tri-Wall Holdings Limited; GreenLabel Packaging; Palletkraft Europe Ltd.; Packprofil Sp. z.o.o.; The Corrugated Pallet Company; Elsons International. |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities and Threats Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The market is valued at USD 6,386.1 million in 2023.
Nestable pallets held 41.6% of the shares in the market, accounting for being the key segment based on product type.
DS Smith Plc., Smurfit Kappa Group, and Conitex Sonoco are some key market players.
The European market is expected to witness high growth in the forecast period.
Plastic pallets are the preferred material for making pallets and account for 40% of the market share.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Material 5.1. Plastic Pallets 5.2. Metal Pallets 5.3. Wood Pallets 5.4. Paper Pallets 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 6.1. Stackable Pallets 6.2. Nestable Pallets 6.3. Collapsible Pallets 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use 7.1. Food & Beverage 7.2. Pharmaceuticals 7.3. Cosmetics & Personal Care 7.4. Consumer Electronics 7.5. Engineering Products 7.6. Chemicals 7.7. Textile and Handcraft 7.8. Agriculture and Allied Industry 7.9. Building & Construction 7.10. Automotive 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. Asia Pacific 8.5. MEA 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Key Countries Market Analysis 15. Market Structure Analysis 16. Competition Analysis 16.1. DS Smith Plc 16.2. Smurfit Kappa Group 16.3. Conitex Sonoco 16.4. Oji Holdings Corporation 16.5. Multi-wall Packaging 16.6. KraftPal Technologies Ltd. 16.7. Europal Packaging 16.8. Tat Seng Packaging Group Ltd. 16.9. Dopack 16.10. Interpal Industries Pte Ltd. 16.11. Pheng Hoon Honeycomb Paper Products Pte. Ltd. 16.12. Mabuchi Singapore Pte Ltd. 16.13. The Alternative Pallet Company Ltd. 16.14. Kimmo (Pty) Ltd. 16.15. Tri-Wall Holdings Limited 16.16. GreenLabel Packaging 16.17. Palletkraft Europe Ltd. 16.18. Packprofil Sp. z.o.o. 16.19. The Corrugated Pallet Company 16.20. Elsons International 17. Assumptions & Acronyms Used 18. Research Methodology
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