Pallets are an integral part of the logistics and supply chain industry that help in efficient movement and transportation of goods. Pallets are widely used in industries such as food and beverage, retail, chemicals, healthcare, and transportation to efficiently store and move products. They provide convenience in handling, storing and transporting a large number of products simultaneously. With growing logistics and e-commerce industries in India, the need for pallets has increased substantially. The Indian logistics industry is estimated to be over USD 160 billion by 2025 and the third largest by 2032. Pallets play a key role in transporting goods from warehouses to distribution centers and end-users. They help improve product packaging, handling, and freight rates while reducing damages. The Indian e-commerce industry has been growing at a rapid pace supported by rising internet and smartphone penetration. Pallets act as a preferred mode of transportation and warehousing for online retailers dealing with large volumes of product delivery orders.
The global India Pallets Market is estimated to be valued at US$ 1011.18 Bn in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing logistics and e-commerce industries is driving significant demand for pallets in India. The logistics industry in India is growing rapidly on the back of increasing industrialization and shifting focus towards organised retail. Pallets play a key role in the logistics value chain as they help transport goods efficiently through different nodes in the supply chain. Furthermore, the booming e-commerce industry has increased the use of pallets for warehousing and transportation of goods. Pallets facilitate order fulfillment for online retailers dealing with high volumes of orders daily. They allow safe and secure transportation of goods directly from warehouses to customers’ doorsteps. Growing penetration of online shopping is expected to boost pallet consumption considerably over the forecast period.
Additionally, expanding cold supply chain market is augmenting pallet usage in India. Cold chain plays a crucial role in transportation and storage of temperature-sensitive products such as pharmaceuticals, dairy, fruits, vegetables and frozen food. Pallets ensure smooth movement of insulated and refrigerated containers maintaining appropriate temperatures within warehouses and transportation vehicles. This is fueling their adoption among cold chain operators. These factors are expected to propel growth of the India pallets market over the forecast period.
Segment Analysis
Wood pallets dominates the India Pallets Market with around 65% market share. Wood is the most widely used material for pallets due to its high durability and strength which helps it withstand heavy loads during transportation of goods over long distances. It also absorbs shocks well to prevent damage to packaged goods. Plastic pallets account for 20% share owing to benefits such as resistance to moisture, chemicals and fire. They are also lightweight and don’t splinter making them suitable for automated handling. Corrugated pallets hold around 15% share on account of properties like recyclability, printability and lightweight.
PEST Analysis
Political: The logistics sector in India is witnessing policy support through initiatives like Gati Shakti and National Logistics Policy aimed at lowering transportation costs and reducing emissions.
Economic: Growth in sectors like e-commerce, manufacturing and warehousing is driving demand for efficiently transported goods. The booming retail sector relies heavily on pallets for storage and shipping of inventory.
Social: Rising incomes and growing urbanization are fueling domestic consumption of consumer packaged goods relying on pallets for transportation. E-commerce sectors also require efficient pallet utilization to meet delivery timelines.
Technological: Automation of warehousing facilities and deployment of technologies like robotics, IoT and analytics is pushing adoption of standard pallet sizes for unmanned movement of inventories within facilities.
Key Takeaways
The Global India Pallets Market Growth is expected to witness high supported by rapid expansion of the logistics, e-commerce and manufacturing sectors. The global India Pallets Market is estimated to be valued at US$ 1011.18 Bn in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030.
Regional analysis comprises: South India region dominates India pallets market holding over 35% share led by states like Tamil Nadu, Karnataka and Telangana due to concentration of industries, ports and strong logistics infrastructure. Northern India also has a significant market share of 30% due to industries located in states like Delhi, Haryana and Uttar Pradesh.
Key players operating in the India Pallets Market are UOP-A Honeywell Company, Wärtsilä Hamworthy, MPR Industries PLC, John Zink Company LLC, Zeeco Europe and Zeeco India, Gardener Denver, and Ro-Flo Compressors. Key players are focusing on portfolio expansion, automation, and digitization to improve productivity and optimize pallet utilization.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
