Plastic Pallets Market – Insights
Plastic pallets are stable and flat plastic platforms, which are used to support and transport goods & materials. Plastic pallets are used in processing and manufacturing units, conveying systems, distribution centers, static storage, and for transportation of heavy items to the production unit. For instance, plastic pallets are used at cold storages & food processing units, supermarkets, butcheries & bakeries, spinning & dying units, packaging sections, cement & fertilizers production units, publishing and printing houses, by garment exporters, book publishers, and storing & transporting books and stationary items among others. The market is expected to reach 586.05 Million Units by 2027, at a CAGR of 3.5% over the forecast period, owing to the growing end-use industries.
Plastic pallets are used in warehouses for storing raw materials as well as finished products in a convenient way, and for efficient handling and storage of products in various end-use industries such as food & beverage, pharmaceutical, chemical, and textile industries, among others. Growing end-use industries across the globe is expected to drive growth of the market over the forecast period. For instance, according to the report, ‘Data & Trends, EU Food & Drink Industry 2018’, published by FoodDrinkEurope (a food industry confederation in the European Union) in October 2018, intra-EU exports of the Europe food & beverage industry accounted for US$ 303.77 Bn in 2017, and extra-EU exports accounted for US$ 122.40 Bn. Plastic pallets are widely used for efficient shipping and transportation of products from one place to another. Therefore, increasing trade of food products & beverages is expected to boost demand for global plastic pallets over the forecast period.
Among pallet type, rackable segment is expected to account for significant market share during the forecast period, owing to high stability as rackable pallets are designed with the objective to provide maximum stability during storage. Owing to the picture frame design at the bottom of the pallets, these pallets have applications such as packaging and transportation of products in end-use industries.
Lumber plastic pallets have the appearance and feel of wooden pallets. Lumber plastic pallets are manufactured from recycled plastic. Plastic lumbers have application in logistics and transportation sectors. Moreover, plastic lumbers are excellent alternatives for wooden pallets, owing to high strength compared to wooden pallets. Lumber plastic pallets have optimal material handling properties and can be used with pallet-jacks, forklifts, and stackers among others. Therefore, recycled lumber plastic is a sustainable, and durable alternative to standard wooden pallets.
The global plastic pallets market is expected to be valued at 586.05 Million Units by 2027 and is expected to register a CAGR of 3.5% in terms of revenue over the forecast period (2019 – 2027).
Figure 1. Global Plastic Pallets Market Share (%), By Region, 2018
Source: Coherent Market Insights, 2018-19
Among region, Europe accounted for a significant market share of around 15% in 2018. Factors such as adoption of plastic pallets in end-use industries such as food & beverages among others is expected to drive growth of the market over the forecast period. This, in turn is expected to facilitate demand for plastic pallets and fuel growth of the global plastic pallets market over the forecast period. For instance, according to the report, ‘Data & Trends, EU Food & Drink Industry 2018’, published by FoodDrinkEurope (a food industry confederation in the European Union) in October 2018, the turnover of the food & drink industry in Europe was valued at US$ 1233.50 Bn in 2016, making the food & drink industry the highest revenue generating sector in the EU.
Figure 2. Global Plastic Pallets Market Share (%), By Pallet Type, 2018
Source: Coherent Market Insights, 2018-19
Players operating in the global plastic pallets market are adopting various growth strategies such as mergers, acquisitions, business expansions, and product launches to cater to increasing demand for plastic pallets. For instance, in February 2019, TBA Plastové Obaly S.R.O. launched perforated Euro containers. These containers have applications in various industries, especially for storing and transporting food products.
Major players operating in the global plastic pallets market include OMNIPAK S.R.O., Smart Flow Europe SA, ORBIS Corporation, Bekuplast Gmbh, Meridian Group D.O.O., TBA Plastové Obaly S.R.O., CABKA Group, PURUS PLASTICS GmbH, Plastic Pallets Manufacturers, and Paxxal Inc., among others.
Rapid industrialization, and awareness about benefits of plastic such as durability, strength, light-weight nature, and weather resistance is expected to help expand consumer demand for plastic pallets. As a result, the plastic pallets market is expected to witness significant growth during the forecast period.
Key players are focusing on developing new products, in order to expand their consumer base and strengthen their market presence. For instance, in November 2016, Smart Flow Europe NV, a Belgium-based manufacturer of plastic pallets, presented its new SF800 MNR pallet at the 'All4Pack Packaging & Handling' trade fair held in Paris Nord Villepinte, France. The new plastic pallets have soles and interlocking design. According to the company, the SF800 MNR pallet is the first monoblock pallet introduced to the market which is nestable, and has three soles.
The three soles of the pallet offer better stability and therefore evenly distribute the load, which doubles the loading capacity of trucks, and thus reduces transport flows. The SF800 MNR pallet is lightweight (11 kg) and therefore easy to handle. Moreover, the pallet is robust as it can support load of 1000 kg, and up to 350 kg of rack load.
However, increasing availability of substitutes is expected to hamper growth of the global plastic pallets market over the forecast period. For instance, pallets are traditionally made from wood. Wood pallets are considered as environmentally friendly as they are biodegradable in contrast to plastic pallets which are non-biodegradable, and can cause plastic pollution. Moreover, plastic pallets release toxic gases when burned. Pallets can also be manufactured from a variety of other materials such as metal, cardboard, paperboard, and other composite materials. Moreover, in case of plastic pallets, it is difficult to make their prototypes.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.
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