The “Global Pallet Pooling (Rental) Market, By Material Type (HDPE, Polypropylene And Advanced Composite), by Product Type (Nestable, Stackable And Rackable), and By End-use (FMCG, Food & Beverage, Pharmaceuticals, Electronics, Chemical & Petrochemical And Others) by Geography (North America, Europe, Asia Pacific, and Latin America, Middle East & Africa) - Global Forecast to 2027”, is expected to be valued at US$ 1454173.185 million by 2027, witnessing a CAGR of 6.6 % during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.
Pallet pooling is managing and organization of plastic pallets, where a pallet rental company lends its pallets to various end-use industries such as pharmaceutical, medical, food and beverages, and more. The main job of pallet pooling company is to provide pallets in good-shape and are ready-to-use at company’s disposal in the time of need. The pallet pooling company will organize the pallets that are to be taken to other companies or back to production facilities. Moreover, pallet pooling companies help to reduce complexity of pallet procurement, recovery, and management with decreasing waste and total cost of business (TCB).
The global pallet pooling (rental) market was estimated to account for US$ 880,593 Mn in terms of value by the end of 2019
Growing focus of end-use industries towards their core businesses is expected to propel the global pallet pooling (rental) market during the forecast period
Companies can shift their focus, resources, energy, and sole attention towards their core businesses by renting the pallets to pallet pooling organizations. The companies can maintain their day-to-day supply chain operations and rent can be paid that balance the taxes. This, in turn, helps to remove the expensive diversions of storing and maintaining inventory of plastic pallets. Furthermore, most businesses maintain stringent hygiene standards, in order to carry out operations and take the stock directly to the floor. With two modern and hygienic washing plants in Grimsby and Midlands, PPS Midlands Ltd. extended its service to third parties on contract basis. Hence, these factors are expected to boost the market growth over the forecast period.
Development of cost-effective plastic pallets is expected to present excellent business opportunity for market players in the near future
Manufacturers in the industry can offer cost-effective plastic pallets than wooden pallets, in order to capitalize on untapped potential in the market. Investing in research and development, in order to innovate affordable plastic pallets can enable manufacturers to expand their consumer base and gain competitive edge in the market. Moreover, manufacturers can focus on reducing the cost of molding of plastic pallets, thereby providing lucrative growth opportunity over the forecast period.
Sever effect of changing climatic settings is expected to restrain the global pallet pooling (rental) market growth over the forecast period
Unlike wooden pallets, plastic pallets often fail to perform under changing climatic conditions. Moreover, plastic pallets often change their properties and become precarious in cold conditions, soft in hot conditions, and they lose oil and become fragile when they as exposed to direct sun rays. Wooden pallets do not show such changes, and thus, they are preferred for export applications. Hence, change due to climatic conditions is expected to hinder the market growth in the near future.
Companies are integrating RIFD tags by embedding them into plastic pallets. RFID tags can detect the plastic pallets through supply chain from rental service center to distribution facility to end-use industry, thereby preventing it from being stolen. This is done with the help of radio waves that communicate with transponder and stores valuable information in a microchip. Furthermore, Intelligent Global Pooling System (iGPS) was the first pallet pooling company to include RIFD tags into their pallets, in order to make its supply chain management sophisticated.
Numerous end-use industries such as pharmaceutical, food and beverage, medical, and FMCG require washable, hygienic, and germ-free pallets in order to comply with sanitary standards. Wooden pallets often fail to fulfill these requirements, thereby boosting the demand for plastic pallets. Since plastic pallets can be washed after used and can be kept clean dry, they have witnessed significant demand in the recent past. Moreover, they offer smooth and closed surface thereby eliminating cavities and dirt from the surface area.
Key players involved in the global pallet pooling (rental) market are Demes Logistics GmbH & Co. KG, iGPS Logistics LLC, Schoeller Arca Time Materials Handling Solutions Limited, Loscam Australia Pty. Ltd., Zentek Pool System GmbH, Brambles Limited, Euro Pool Group, PPS Midlands Limited, Contraload NV, and Faber Halbertsma Groep B.V.
Coherent Market Insights is a prominent market research and consulting firm offering action-ready syndicated research reports, custom market analysis, consulting services, and competitive analysis through various recommendations related to emerging market trends, technologies, and potential absolute dollar opportunity.