Pallets market set to hit $95 billion by 2029, smart pallet adoption on upward trend: PMR Report
Significant demand generated from manufacturers and retailers in food & beverages, pharmaceutical, and chemical industries continue to drive sales of pallets in global market. Poised for a whopping market value of $95 billion towards the end of 2029, the global pallets market is headed for a healthy CAGR during the following decade. Adoption of smart pallets, block pallets, and plastic pallets will progress at a notable rate owing to their several benefits over conventional pallets, as suggested by a new study report.
A majority of demand for plastic and block pallets is accounted by the food & beverages industry, which can be attributed to heightening sales of processed food products and increasing need for sustainable cold storage and transportation solutions. The market will also be shaping up with significant increase in the usage of radio-frequency identification (RFID) tags in plastic pallets, robots in processing and handling of pallets, and emergence of alternative pallets in the market.
Key Takeaways - Global Pallets Market Study
· Pallet sales in Asia Pacific are identified to remain dominant throughout the forecast period, and exhibit a higher CAGR in comparison to fellow regions.
· Growth of manufacturing, infrastructural, and transportation sectors would remain pivotal to the build-up of global pallets market.
· Demand for pallets is concentrated predominantly in the food and beverages industry.
· Wood-based pallets are identified to account for majority of the market share owing to factors such as ease of availability of wood and better price-efficiency than other materials.
· Plastic pallets are gaining prominence in food & beverages, automotive, and pharmaceutical industries owing to their high strength, durability, lightweight, and long-term environmental sustainability.
Smart pallets are gaining popularity among various manufacturers for asset tracking and inventory management. Market players must capitalize on the lucrative opportunities created by the segment to establish their presence in the market.
Local Manufacturers Leading their Way in Pallets Market
The market for pallets is identified to be a fairly fragmented on a global level, with leading market players accounting for nearly 8-10% of overall market size as of 2018. However, significant fragmentation is witnessed in regions such as Asia Pacific, where local manufacturers hold prominent market positions. Some of the key market players in the market included in the report are Brambles, PalletOne Inc., and Craemer Holding. Furthermore, several market players are coming up with technological innovations in pallet production to gain a higher consumer base. Companies are focused on new launches and strategic long-term partnerships to sustain their revenue flow in the pallets market.