(MENAFN- PR Newswire)
NEW YORK, Aug. 27, 2024 /PRNewswire/ -- The global plastic pallets market size is estimated to grow by USD 1.32 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over
3.84% during the forecast period. Benefits associated with use of plastic pallets
is driving market growth,
with a trend towards
manufacturing of plastic pallets using 100 percentage recyclable plastics. However,
regulatory norms and standards on use of plastic pallets poses a challenge. Key market players include Agrico Plastiques Ltee, Allied Plastics Inc., Brambles Ltd., CABKA Group GmbH, CTC Plastics, De Vierhouten Groep BV, DIC Corp., Enlightening Pallet Industry Co. Ltd., Greif Inc., Greystone Logistics Inc., Kamps Inc., Litco International Inc., Loscam International Holdings Co. Ltd., Monoflo International Inc., Myers Industries Inc., Nefab AB, Perfect Pallets Inc., PGS Group, Polymer Solutions International Inc., PURUS PLASTICS GmbH, Rehrig Pacific Co., Schoeller Allibert, SDI Packaging Inc., T.M. Fitzgerald and Associates, and TranPak Inc..
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Technavio has announced its latest market research report titled Global plastic pallets market 2024-2028
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| Plastic Pallets Market Scope |
| Report Coverage |
Details |
| Base year |
2023 |
| Historic period |
2018 - 2022 |
| Forecast period |
2024-2028 |
| Growth momentum & CAGR |
Accelerate at a CAGR of 3.84% |
| Market growth 2024-2028 |
USD 1322.3 million |
| Market structure |
Fragmented |
| YoY growth 2022-2023 (%) |
3.54 |
| Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
| Performing market contribution |
APAC at 45% |
| Key countries |
US, China, Japan, Germany, and UK |
| Key companies profiled |
Agrico Plastiques Ltee, Allied Plastics Inc., Brambles Ltd., CABKA Group GmbH, CTC Plastics, De Vierhouten Groep BV, DIC Corp., Enlightening Pallet Industry Co. Ltd., Greif Inc., Greystone Logistics Inc., Kamps Inc., Litco International Inc., Loscam International Holdings Co. Ltd., Monoflo International Inc., Myers Industries Inc., Nefab AB, Perfect Pallets Inc., PGS Group, Polymer Solutions International Inc., PURUS PLASTICS GmbH, Rehrig Pacific Co., Schoeller Allibert, SDI Packaging Inc., T.M. Fitzgerald and Associates, and TranPak Inc. |
Market Driver
The global plastic pallets market is witnessing significant growth due to vendors' increasing focus on manufacturing 100% recyclable plastic pallets. This shift is driven by the continuous emphasis on reducing carbon footprint and environmental pollution. Prominent vendors are using recycled business and household plastics to create sustainable pallet offerings. They are opting for durable materials like HDPE to ensure longevity. Additionally, manufacturing processes are being optimized to minimize energy consumption and carbon dioxide emissions. For instance, Greystone Logistics Inc., based in Tulsa, Oklahoma, recently acquired Paradigm Plastic Pallets Inc., reviving production at its Indiana facility using a hollow profile extrusion method and robotics. This trend towards 100% recyclable plastic pallets not only promotes environmental sustainability but also ensures cost optimization, fueling market growth during the forecast period.
The Plastic Pallets Market is experiencing significant growth due to increasing FDI and DHL supply chain adoption. High-density polypropylene (HDPP) and polypropylene (PP) pallets, such as HDPE pallets and PP pallets, are popular choices due to their durability and stackability. Nestable, rackable, and stackable pallets offer efficient logistics solutions for ecommerce and retail spaces. International agreements like the TransPacific Partnership boost exports of petroleum polymers, benefiting plastic pallet manufacturers. Allied Plastics leads the market with its advanced tracking and long-lasting materials. Sustainability is a key trend, with recyclable HDPE pallets addressing environmental concerns. Hygiene requirements and safety are essential in various industries, making plastic pallets a preferred choice over wooden ones. Cost-effectiveness, consistent size, and automated systems are other advantages. Plastic pallets are used in various applications, including chemical drums, bulk bags, and P3 pallets. The FastTrack lifecycle ensures quick turnaround, while logistics services provide efficient transportation. Regulatory compliances, insects and fungi resistance, and recycling infrastructures are ongoing concerns. Safety and cleanliness are paramount, with shrink wrap, stretch wrap, and adhesive used for secure transport.
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Market
Challenges
The plastic pallets market is subject to regulatory norms in specific industries, particularly in food processing and packaging, to ensure safety and environmental sustainability. In the US, the Food and Drug Administration (FDA) has set standards for food processing, handling, and transportation under the Food Safety Modernization Act (FSMA). The FDA updated the FSMA regulations in mid-2018, requiring food transportation equipment to not make food unsafe. Vendors in the food processing industry must use sanitary equipment. Additionally, corporate social responsibility (CSR) activities, including minimizing carbon footprint and hazardous substance use, are essential for market vendors. Regulations limiting lead, mercury, cadmium, and polybrominated biphenyls in plastic pallet manufacturing pose design and manufacturing challenges, acting as market inhibitors for the global plastic pallets market during the forecast period.
The Plastic Pallet Market faces several challenges. High initial investment for automated systems and regulatory compliances are key concerns. Recycling infrastructure development and sustainability issues, such as deforestation, are also pressing matters. Hygiene requirements and safety & cleanliness are essential in food and pharmaceutical industries. Consistent pallet size ensures efficient material handling and transportation. Cost-effectiveness is crucial, with alternatives like metal pallets, corrugated cardboard, and shrink/stretch wrap. Sustainability is a growing concern, with the shift towards recyclable and high-density polyethylene pallets. Businesses aim for profitability, balancing costs against deadweight and packaging weight. Sustainable packaging solutions are in demand due to busy lifestyles and e-commerce growth. Contamination from bacteria, pests, fungi, splinters, and protruding nails are health and safety risks. Regulatory bodies like the FDA and EPA set strict guidelines for pallets used in food and pharmaceutical industries. Companies like Tylenol, Arthritis medication, and Lipitor rely on pallets that meet their specific requirements.
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Segment Overview
This plastic pallets market report extensively covers market segmentation by
Material
Geography
2.1 APAC
2.2 Europe
2.3 North America
2.4 South America
2.5 Middle East and Africa
1.1
HDPE- HDPE pallets, manufactured using high-density polyethylene (HDPE), a thermoplastic made of ethylene monomers, are widely used in various industries due to their superior reliability, durability, and performance. These pallets are commonly used in manufacturing plastic water bottles, lumber, pipes, and geomembranes. Vendors producing HDPE pallets are increasingly focusing on using 100% recyclable plastic polymers to produce eco-friendly options. The injection-molding process is the most common manufacturing technique for HDPE pallets. Industries such as industrial goods and automotive utilize HDPE pallets due to their resistance to corrosion and solvents, making them easy to clean. Additionally, HDPE pallets are suitable for food and pharmaceutical applications due to their strong weather and chemical resistance. With growing regulations on plastic packaging usage due to environmental concerns, the demand for recycled HDPE pallets is anticipated to increase, boosting the growth of the global plastic pallets market.
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Research Analysis
The Plastic Pallets Market has witnessed significant growth in recent years due to the advantages they offer over traditional pallets, such as lightweight, durability, and ease of handling. High-density polypropylene (HDPE) and polypropylene (PP) are the most commonly used materials for manufacturing plastic pallets, including HDPE pallets, PP pallets, nestable pallets, rackable pallets, and stackable pallets. FDI and logistics companies like DHL Supply have increasingly adopted plastic pallets due to their transportation efficiency and sustainability. The TransPacific Partnership agreement has further boosted the market by promoting international trade. Plastic pallets are ideal for various industries, including ecommerce, where lightweight and stackable features are essential. They are also used in material handling, particularly in the pharmaceutical industry for transporting sensitive goods such as Arthritis medication or Cholesterol medication like Lipitor. Plastic pallets offer various advantages over metal pallets, including a higher profit margin for manufacturers. They also have a lower deadweight and packaging weight, making them more cost-effective for transportation. Additionally, they are more environmentally friendly than traditional pallets made of softwood lumber. Plastic pallets are often used in conjunction with shrink wrap, stretch wrap, adhesive, and strapping for secure packaging. The market for plastic pallets is expected to continue growing due to their versatility and cost-effectiveness.
Market Research Overview
The Plastic Pallets Market has witnessed significant growth in recent years due to the advantages they offer over traditional wooden pallets. High-density polypropylene (HDPP) and polypropylene (PP) are commonly used materials for manufacturing plastic pallets, including HDPE pallets, PP pallets, nestable pallets, rackable pallets, and stackable pallets. These pallets are favored for their long-lasting materials, sustainability, hygiene requirements, and safety and cleanliness. FDI and logistics companies like DHL Supply have increasingly adopted plastic pallets due to their consistency in size, automated handling systems, and cost-effectiveness. The TransPacific Partnership and other international agreements have further boosted the market by promoting global trade. Plastic pallets are also used in various industries such as e-commerce, retail spaces, and logistics activities. They are suitable for handling chemical drums, bulk bags, and P3 pallets, and can be integrated with advanced tracking systems for efficient fast-track lifecycle management. Environmental concerns have led to the development of recyclable and sustainable plastic pallets, addressing regulatory compliances and reducing deforestation. However, the high initial cost and lack of recycling infrastructures remain challenges for the market. Plastic pallets offer numerous benefits over wooden pallets, including resistance to insects and fungi, consistency in size, and compatibility with automated systems. They also eliminate contamination risks associated with wooden pallets, such as splinters, protruding nails, and bacteria. Plastic pallets are also suitable for various applications, including material handling, transportation efficiency, and sustainable packaging. The market is expected to continue growing due to the busy lifestyle and increasing demand from organized retail players. However, concerns over sustainability issues and the high initial cost remain challenges for the market. The injection molding process is used to manufacture plastic pallets using virgin plastic resins. Metal pallets, deadweight, and packaging weight are other factors that influence the market dynamics. Shrink wrap, stretch wrap, adhesive, and strapping are commonly used for securing loads on plastic pallets. The profit margin for plastic pallet manufacturers depends on various factors, including the type of plastic used, production capacity, and market demand. In summary, the Plastic Pallets Market is expected to continue growing due to their numerous benefits over wooden pallets, including sustainability, hygiene requirements, safety and cleanliness, and cost-effectiveness. However, challenges such as high initial costs and lack of recycling infrastructures remain. The market is expected to grow further due to the increasing demand from various industries, including e-commerce and organized retail players.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
Material
Geography
APAC
Europe
North America
South America
Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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SOURCE Technavio
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