Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Pallets are an important tool across the logistics industry. It is a flat platform that can carry the load in the warehouse. They are basically used to store, protect, store, and transport materials during material handling. It is a portable platform and improves the operational efficiency of the warehouses by enabling easy movement of stacked goods.
The India pallets market is projected to surpass INR 25000 Cr. by the end of 2027, in terms of revenue, growing at CAGR of 13.9% during the forecast period (2020 to 2027).
Rapid growth in the manufacturing industries in India is predominantly propelling the market growth of the pallets. According to the India Brand Equity Foundation, manufacturing industry has emerged as one of the high growth sectors in India. India is expected to become the fifth largest manufacturing country in the world by the end of the year 2020. The government aims to achieve a 25% GDP share and 100 million new jobs in the sector by 2022.
Increasing development of the warehousing industry in India is expected to drive the market growth of the pallets. Increase in the overseas trade coupled with the expansion of the warehousing industry in India is another major factor expected to propel the market growth of the pallets. Moreover, improvement in the supply chain management is creating demand for warehouses which in turn augmenting the market growth of the pallets.
On basis of states, other states dominated the India pallets market in 2019, reporting 31% market share in terms of revenue, followed by Maharashtra and Tamil Nadu, respectively.
Figure 1. India Pallets Market, Revenue Share (%), By States, 2019
The decline in international trade from India is projected to hamper the market growth of the pallets. For instance, in September 2019, India’s exports declined for the second time in three months in August as global trade tensions and sluggish demand brought down shipments by 6.1%.
An environmental concern associated with the plastic pallets and strict regulations regarding the production of plastic is projected to hamper the market growth of the pallets.
India Pallets Market Report Coverage
||Market Size in 2019:
||INR 8500 Cr.
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||INR 25000 Cr.
- By Material Type: Wood, Composite Wood, Plastics, Metal, Paper
- By Structural Design: Block Pallets, Stringer Pallets, Customized Pallets
- By End Use: Engineering Products, Pharmaceutical Products, Chemical & Petroleum Products, Textile & Handicraft Products, Agriculture & Allied Products, Leather Products, Electronic Products, Marine Products, Others
Saraswati Engineering Limited, Schoeller Arca TIME Material Handling Solution, Mekins Group, Swift Technoplast Private limited, Doll Plast Pallets, JIT Wood Packaging, LEAP India Pvt. Ltd., Spanco Enterprises, Bharadwaj Packaging Private Limited, Aristoplast Products Pvt. Ltd., B.D. Industries (India) Pvt. Ltd., Total Pack, and DNA Packaging Systems
- Rapid growth in the manufacturing industries in India
- Increasing development of the warehousing industry
- Improvements in the supply chain management
|Restraints & Challenges:
- Environmental concern associated with the plastic pallets and strict regulations regarding the production of plastic
Increasing utilization of pallets in the pharmaceutical industry for storing and transportation of the pharmaceutical product is projected to offer new market opportunities. Growing geriatric population coupled with the increasing prevalence of the chronic disease is creating demand for healthcare products such as drugs and devices. The growth of the pallets market is also attributed to the expansion of the pharmaceutical industry.
The advent of disposable plastic pallets as it has a lower negative impact on the environment is projected to offer potential opportunities in the near future. Growing demand for lightweight plastic pallets as they increase the payload capacity and are also easy to clean is propelling the market growth. Also, the use of disposable plastic pallets reduces the cleaning and shipping cost time. Hence, the growing use of disposable plastic pallets is projected to bolster the market growth.
Figure 2. India Pallets Market – Opportunity Analysis
Expanding e-commerce industry due to growing trend of digitalization and online shopping is creating demand for logistics services is projected to foster the market growth pallet. Increasing spending by consumers on housing as well as other consumer goods due to increasing disposable income is further expected to foster the market growth of the pallets. Moreover, the expansion of chemical industries is also creating demand for the logistics of chemical products thereby fueling the market growth.
RFID chips embedded pallets are gaining popularity in the market and this is expected to spur the market growth of the pallets. RFID chips embedded pallets enable easy traceability and real-time information of the products during transportation. Moreover, it also measures the temperature, humidity, and impact during transportation. RFID chips embedded pallets are majorly used in the chemical, pharmaceutical, and food &beverage industry.
Figure 3. India Pallets Market, Revenue Share (%), By Structural Design, in 2019
On the basis of structural design, block pallets the India pallets market in 2019 with around 64% of market share in terms of revenue, followed by stringer pallets and customized pallets, respectively.
India pallets Market - Impact of Coronavirus (Covid-19) Pandemic
Rapid surge in demand for medical supplies, household essentials, and food products as compared to the pre-Covid-19 scenario has led to the changes in product category in this distribution channel. These changes has boosted the demand for corrugated boxes, cartons, pallets and other packaging products and is further expected to foster the growth of the India pallets Market till mid quarter of 2021.
Key players are operating in the India pallets market are Saraswati Engineering Limited, Schoeller Arca TIME Material Handling Solution, Mekins Group, Swift Technoplast Private limited, Doll Plast Pallets, JIT Wood Packaging, LEAP India Pvt. Ltd., Spanco Enterprises, Bharadwaj Packaging Private Limited, Aristoplast Products Pvt. Ltd., B.D. Industries (India) Pvt. Ltd., Total Pack, and DNA Packaging Systems