Analyst: pallets market to grow at 5.1% CAGR through 2027
Allied Market Research sees plastic pallets growing at slightly faster CAGR of 8.8% though 2027
According to a new research report from Allied Market Research (AMR), the global pallets industry generated $79 billion in revenue in 2019, and is expected to generate $110.56 billion in 2027, witnessing a compound annual growth rate (CAGR) of 5.1% from 2020 to 2027.
Rise of the e-commerce industry, increase in demand for plastic pallets, and focus on sustainable pallet production drive the growth of the global pallets market, according to AMR. However, surge in price of wooden pallets hinders the market growth. On the other hand, implementation of innovative technologies in the supply chain presents new opportunities in the coming years.
Based on material, the wood segment accounted for the largest market share, accounting for nearly 88% of the global pallets market in 2019, and is expected to maintain its lead position during the forecast period. This is due to ease in availability of timber, less weight to load-carrying capacity ratio, and ease in manufacturing and repair. However, the plastic via injection molding segment is projected to manifest the largest CAGR of 8.8% from 2020 to 2027, owing to reduced costs incurred on damages and repairs along with its high resistance to mold and insects.
Based on type, the stackable segment accounted for the largest share, contributing to nearly half of the global pallets market in 2019, and will maintain its leadership status during the forecast period. This is due to its versatility that boosts its demand in warehousing applications. However, the display segment is projected to portray the highest CAGR of 6.1% from 2020 to 2027, owing to its features such as anti-slip technology, non-porous surface, and others.
The AMR report is titled, “Pallets Market by Type (Rackable, Nestable, Stackable, and Display), Material (Wood, Plastic via Injection Molding, Plastic via Other Methods, Corrugated Paper, and Metal), and End-user Industry (Food & Beverage, Chemical, Retail, Pharmaceutical, and Others): Global Opportunity Analysis and Industry Forecast, 2020–2027.”
