Plastic pallet market

Plastic Pallet Market, By Product Type (Lumber Plastic, and Molded Plastic), By Pallet Type (Nestable, Rackable, and Stackable), By End use Industry (Food & Beverages, Pharmaceuticals, Chemicals, Construction, and Others (Electronics and Others)), and By Region (North America, Latin America, Asia Pacific, Europe, Middle East, and Africa)

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Apr 2023
CMI2693
130 Pages
Excel & Pdf
Consumer Goods

Summary

The plastic pallets market is expected to be valued at 12,149 Million Units by 2030 and is expected to register a CAGR of 6.65% in terms of revenue over the forecast period (2023 – 2030). Plastic pallets are used in warehouses for storing raw materials as well as finished products conveniently, and for efficient handling and storage of products in various end use industries, such as food & beverage, pharmaceutical, chemical, and textile industries. Growing end use industries across the globe is expected to drive the growth of the market over the forecast period.

Global Plastic Pallets Market: Growth drivers

Rising Demand to Lower the Overall Weight of Bulk Packaging

The weight of the consignment or shipment during transportation is essential in determining the final product's cost. It is common to find that the product's transportation cost exceeds its production cost, reducing the overall profit margin. The weight of plastic pallets is significantly lower than that of wooden or metal pallets, which is expected to entice end user companies to use plastic pallets. The weight of a container or packaging used by a company to transport materials or products is referred to as its dead weight. More packaging weight equates to higher transportation costs, which is a constraint for manufacturers. This is expected to increase demand for low-weight packaging materials to reduce deadweights and improve material handling and transportation efficiency.

Figure 1. Global Plastic Pallet Market, By Pallet type 2022

Adoption of innovative pallets is driving the market

Major players operating in the global market are concentrating on developing innovative pallets with the adoption of smart technologies. Warehousing & transportation consumers across the globe are demanding smart pallets, to track and trace the flow of pallets for accurate management. The RFID will help consumers accurately measure the impact, humidity, and temperature to ensure safety, especially in the food supply chain. This growth is driven by the growing transportation and logistics industry across the globe.

Plastic Pallet Market Report Coverage

Report Coverage	Details
Base Year:	2022	Market Size in 2022:	US$ 7,256 Mn
Historical Data for:	2017 to 2021	Forecast Period:	2023 to 2030
Forecast Period 2023 to 2030 CAGR:	6.65%	2030 Value Projection:	US$ 12,149 Mn
Geographies covered:	North America: U.S. and Canada Latin America: Brazil, Argentina, Mexico, and Rest of Latin America Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific Middle East: GCC Countries, Israel, and Rest of Middle East Africa: South Africa, North Africa, and Central Africa
Segments covered:	By Product Type: Lumber Plastic, Molded Plastic By Pallet Type: Nestable, Rackable, Stackable By end use Industry: Food & Beverages, Pharmaceuticals, Chemicals, Construction, Others (Electronics and Others)
Companies covered:	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
Growth Drivers:	Rising Demand to Lower the Overall Weight of Bulk Packaging Adoption of Innovative Pallets
Restraints & Challenges:	High Product Cost and Sustainability Issues

Global Plastic Pallets Market: Market Restraints

High Product Cost and Sustainability Issues

The demand for plastic pallets from end use industries is increasing significantly; however, several factors, such as the high cost of plastic pallets and their sustainability issues, limit their widespread adoption. Wood pallets are approximately 33% less expensive than plastic pallets. A new 48 "*40" GMA pallet costs around US$ 8–10 in the U.S., whereas a recycled 48 "*40" pallet costs around US$ 4 to US$ 5. On the other hand, similar-sized reusable plastic pallets range from US$ 20 to US$ 25. Plastic pallets are made from petroleum-based plastic resins like HDPE, P.P., LDPE, and others, whereas wood pallets are made from significantly less expensive softwood lumber. Furthermore, since wood pallets do not require expensive tooling, the less complex manufacturing process lowers the cost of wooden pallets. Plastic pallet manufacturing necessitates mechanical pallet design and an injection molding process that necessitates costly tooling, raising the overall price of the end product. For open-loop or export applications where the pallet is non-returnable, end use companies prefer low-cost pallets such as wood pallets over plastic pallets.

Figure 2. Global Plastic Pallet Market, By Region 2022

Global Plastic Pallets Market: Market segmentation

Among pallet type, rackable segment is expected to account for a significant market share during the forecast period, owing to high stability as rackable pallets are designed 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.

Global Plastic Pallets Market: Regional Analysis

Among region, Europe accounted for a significant market share of around 15% in 2022. Factors such as the adoption of plastic pallets in end use industries such as food & beverages among others is expected to drive the growth of the market over the forecast period. This, in turn, is expected to facilitate demand for plastic pallets and fuel growth of the 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.

Global Plastic Pallets Market: Recent developments

In January 2022, Greystone Logistics, Inc. commenced shipping pallets for a US$ 13.5 million purchase order to provide 100% recycled 48x40 plastic shipping pallets to a nationwide retailer at one of its U.S. warehouse distribution centers.

In March 2022, Cabka Group GmbH (together with its subsidiaries, "Cabka"), a leading integrated circular production company, and Dutch Star Companies TWO B.V. ("DSCT"), a particular purpose acquisition company listed on Euronext Amsterdam, have reached an agreement on forming a business combination to list as Cabka N.V.

Global Plastic Pallets Market: Key Companies

Major players operating in the 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.

Definition: Plastic pallets are stable and flat plastic platforms, which are used to support and transport goods and 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.

Table of Content

Table of Contents

Browse 64 market data tables* and 32 figures* on “Plastic Pallets Market” - Global forecast to 2030.

Segmentation

Detailed Segmentation:

- Frequently Asked Questions -

What are the growth estimates for plastic pallets market till 2030?

The plastic pallets market is estimated to surpass 12,149 Million units by 2030.

Which are the prominent market players?

Major players operating in the 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 Pa6.65al Inc., among others.

What are the key factors hampering growth of the market?

High product cost and sustainability issues are the major factors that are expected to hamper the growth of the market over the forecast period.

What are the key factors driving growth of the market?

Rising demand to lower the overall weight of bulk packaging and the adoption of innovative pallets are the major factors that are expected to propel the growth of the market over the forecast period.

What is the compound annual growth rate (CAGR) of the market for next 8 years?

The market is estimated to exhibit a CAGR of 6.65% over the forecast period.

Which segment based on pallet type, accounted for the highest demand in the market?

Among pallet type, rackable segment is expected to account for a significant market share during the forecast period.