Global Plastic Pallets Market by End-use (Pharmaceuticals, Food & Beverage, Chemicals), by Material (LDPE, HDPE, PP), by Type (Stackable, Nestable, Rackable) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global plastic pallets market was worth USD 6.7 billion in 2020. It is projected to grow at a compound annual rate (CAGR of 5.6%) between 2021 and 2028. The market is expected to grow due to growing demand for durable, hygienic and contamination-free pallets from the chemical, food and beverage, and pharmaceutical industries. Plastic pallets are made from durable materials such as HDPE and PP. They are intended to allow for the manual handling of goods using a front loader, forklift or jack and other material handling equipment. Plastic pallets are more expensive than single-use wooden pallets. However, plastic pallets can be used for many trips at a lower cost, which allows for a quick return on investment.

Due to increased government attention on strengthening their manufacturing sector through trade deals and the 'Make in America campaign, the U.S. market will experience significant growth. Companies in the region are also increasingly choosing sustainable business practices to enhance their brand image.

Plastic pallets can be more expensive than wood pallets. This increases material handling costs and the possibility of theft. The introduction of active tracking devices such as RFID tags and Bluetooth and the Internet of Things (IoT), has made it possible to track pallets more efficiently and reduced the risk of losing them. The increased appeal of plastic pallets as a result of technological advances is expected to drive the plastic pallet market in the future.

Plastic pallets can be used for multiple trips and not have to be thrown away after a single use. This eliminates packaging waste from going into landfills. It is also highly sustainable even though they are non-biodegradable. Market growth is expected to be supported by a growing government focus on recycling packaging products and a rising awareness of sustainability among consumers.

A pallet material must not contain any contamination. This is especially important for those working in the pharmaceutical, food, and beverage industries. Wood pallets are susceptible to catching bacteria, pests or fungi. Additionally, the protruding nails or splinters of wooden pallets can cause damage or tampering with packaging. Plastic pallets are preferred by key industries due to the above-mentioned shortcomings of wood pallets.

Material Insights

The largest share, 68.2%, was attributed to high-density polyethylene in the material segment. Its value was approximately $1.5 trillion in 2020. HDPE pallets can be easily cleaned and offer strong impact resistance. They also have robust solvent resistance and corrosion resistance. End-user companies love them. HDPE pallets are resistant to damage from rough handling, such as forklifts and other material handling equipment. HDPE pallets are suitable for food and pharmaceutical applications due to their chemical and weather resistance.

The Polypropylene material segment will see the greatest growth between 2021 and 2028. They are durable and can be used in heavy-duty applications within a tight supply chain. PP pallets tend to be more expensive than HDPE pallets. However, PP pallets can still make more return trips than HDPE and are therefore more economical over the long-term.

The limited use of PP pallets as one-way or export pallets is restricted by their high cost. Therefore, they are mainly used in closed-loop applications. Companies are opting for returnable pallets to reduce plastic waste, and address sustainability issues caused by one-way or expendable pallets. This will fuel the demand for PP Pallets.

Type Insights

Nestable pallets were the dominant type of plastic pallet in 2020, accounting for 43.6% of the market's total revenue. Because they can be nested together, they take up less space in return freight and are more cost-effective than other types of pallets. They are also cheaper than their stackable and rackable counterparts making them suitable for export or open-loop supply chains.

Rackable pallets are pallets that can be stored on racks. These pallets enable end-user companies to maximize their floor space by placing the pallets vertically in an equidistant order on the racks. Rackable pallets are usually equipped with a picture frame or runners frame at the bottom that allows for the handling of large loads.

A stackable pallet is not like a nestable one. It has a solid platform for its base. These pallets can be stacked on top of each other and returned to their source. Stackable pallets are a good choice for long distance transport because they provide maximum stability for loaded goods. Stackable pallets are more durable than rackable pallets and are therefore often used for heavy-duty tasks.

Because heavy components are often transported from suppliers' facilities to assembly plants, the automotive industry prefers heavier pallets. Over the forecast period, stackable pallets will see a steady increase in demand due to increased manufacturing of heavy metals and automobiles.

End-use Insights

With over 23.4% global revenue, the food and beverage segment dominated the market in 2020. Demand was driven primarily by farmers and agricultural companies that handle fresh produce, as well as by food processing companies that store, transport, and handle processed products.

Plastic pallets are used in the chemical industry to transport various products, including powder, granule and liquid forms. Pallets are used to transport plastic polymers like PET, PP and ABS; minerals, alloys, and chemicals. Wooden pallets are the most popular choice for export purposes in the chemical industry due to their low cost and availability. Plastic pallets have been increasingly preferred by chemical companies in recent years due to their durability and sustainability as well as hygiene.

Pharmaceutical industry is very concerned about the hygiene of packaging materials and handling products. Wooden pallets can be contaminated by bacteria and fungus, and they are difficult to clean. Plastic pallets, on the other hand, are strong in chemical resistance and safe from contamination. This makes them an ideal choice for material handling in the pharmaceutical sector.

Due to rising aging populations, increased incidences of chronic disease, and growing awareness about health, the global pharmaceutical industry is growing at an impressive pace. This will drive demand for plastic pallets. The demand for plastic pallets in pharmaceuticals' end-use segments will be boosted by the increasing production of generic pharmaceuticals.

Regional Insights

Asia Pacific dominated the market, accounting for 32.3% of global revenue share in 2020. It is expected to grow at the fastest CAGR between 2021 and 2028. The rapid industrialization of the region and the explosive growth of ecommerce are two key factors that have contributed to the greatest growth in the market from 2021 through 2028.

North America was the second largest market in 2020. It is expected to experience a substantial CAGR between 2021 and 2028. Favorable trade agreements such as the TMEC between the U.S. and Canada are expected to increase manufacturing activity within the region. This is expected to propel the North American market.

European countries are focusing heavily on reuse, recycling and degradable packaging. The EU (European Union), released its Circular Economy Action Plan on March 11, 2020. It set a goal to make all EU markets reusable and recyclable by 2030. These positive initiatives will also increase the use of reusable plastic pallets within the region.

Market Share Insights & Key Companies

With the presence of many small and medium-sized businesses, this market is somewhat fragmented. Recycled plastic is being used more frequently by companies to make pallets. CABKA Group, a German pallet company, makes its entire pallet portfolio out of recycled plastic. The company also collects plastic waste from households and municipalities.

End-use companies can also benefit from pallet renting programs that allow pallet manufacturers to deliver, track, and collect the pallets. These services enable end-user companies to rent pallets rather than own them, which reduces material handling costs. The following are some of the major players in the global market for plastic pallets:

• Orbis Corporation

• Rehrig Pacific Company

• Monoflo International

• CABKA Group

• Greystone Logistics

• TMF Corporation

• Allied Plastics, Inc.

• Perfect Pallets, Inc.

• Polymer Solutions International, Inc.

• TranPak, Inc.

Up Market Research published a new report titled “Plastic Pallets Market research report which is segmented by End-use (Pharmaceuticals, Food & Beverage, Chemicals), by Material (LDPE, HDPE, PP), by Type (Stackable, Nestable, Rackable), By Players/Companies Monoflo International, CABKA Group, Greystone Logistics, Allied Plastics Inc, Polymer Solutions International Inc, TranPak Inc, Orbis Corporation, Rehrig Pacific Company, TMF Corporation, Perfect Pallets Inc”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Plastic Pallets Market Report Segments:

The market is segmented by End-use (Pharmaceuticals, Food & Beverage, Chemicals), by Material (LDPE, HDPE, PP), by Type (Stackable, Nestable, Rackable).

Plastic Pallets Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Plastic Pallets Market

Overview of the regional outlook of the Plastic Pallets Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Plastic Pallets Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Plastic Pallets Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Pharmaceuticals

                2. Food & Beverage

                3. Chemicals

                1. LDPE

                2. HDPE

                3. PP

                1. Stackable

                2. Nestable

                3. Rackable

9. Market scenario by region, sub-region, and country.
10. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
11. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
12. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Plastic Pallets Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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• Correctly Positioning New Products
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Reasons to Purchase the Plastic Pallets Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.