Pallet Market provide portable platforms used for transporting goods in warehousing and shipping. It allows easier mechanical handling of goods during the transportation and storage. Pallets helps avoid damage to goods and makes transportation more convenient. Majority of goods consumed globally rely on the use of pallets at some stage of their supply chain. The rising transportation and warehousing needs of growing e-commerce sector significantly propels the demand for pallets.
The global Pallet Market is estimated to be valued at US$ 30.02 Mn in 2024 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends gaining traction in the pallet market is development of sustainable pallets. Wood pallets have traditionally been used but with rising environmental concerns, manufacturers are increasingly developing more sustainable alternatives. Some alternatives gaining popularity include reuse of plastic crates and pallets made from recycled plastics and other reusable materials. For example, iGPS Logistics LLC offers reusable plastic pallets that can be used over 600 times with proper care and maintenance. They reduce landfill waste and lower costs associated with traditional wood pallets. Eco-friendly alternatives are expected to boost the growth of pallet market over the forecast period.
Porter’s Analysis
Threat of new entrants: Low capital requirements and availability of used equipment lowered the barriers for new companies to enter the pallet market.
Bargaining power of buyers: Large buyers have significant bargaining power over suppliers due to the consolidated nature of demand.
Bargaining power of suppliers: A few major suppliers exist for raw materials like wood, increasing their negotiating power over buyers.
Threat of new substitutes: Limited substitutes exist for pallets due to their functionality in material handling and logistics.
Competitive rivalry: Intense competition exists among vendors on pricing and product quality leading to pricing pressure.
Key Takeaways
The Global Pallet Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The global Pallet Market is estimated to be valued at US$ 30.02 Mn in 2024 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030.
Regional analysis
North America dominated the pallet market owing to large presence of F&B processing industries. California, Texas and Florida are some of the key domestic markets. The Asia Pacific region is expected to witness the highest growth due to rapid industrialization in China and India. Countries like China, Japan and India contribute significantly to the regional demand.
Key players
Key players operating in the pallet market are 3D Robotics, AeroVironment, Inc., DJI, Elbit Systems Ltd, General Atomics, GoPro, Inc., Israel Aerospace Industries, Lockheed Martin Corporation, Northrop Grumman Corporation, Parrot SA, Textron Inc., Boeing, Uvify Inc, and YUNEEC. Brambles Ltd and Loscam are the largest pallet pool operators globally.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
