Global Plastic Pallets Market Overview
The key driver impacting the plastic pallets market is the increasing usage of plastic pallets in ever-expanding industries such as food and beverage, manufacturing, chemical for the logistics of various products and equipment is boosting demand for plastic pallets in the forecast period. For instance, As per the Institute of Food Technologists, global sales of packaged foods and drinks reached $2.1 trillion in 2017 and are predictable to augment at a compound annual growth rate (CAGR) of 2.2% through 2022. The Middle East/Africa and the Asia Pacific food sectors are likely to grow at a high pace in the coming years.
Moreover, the growing government focus towards expanding their manufacturing sector through trade agreements is also estimated to be a significant determinant that adds growth to the market.
According to Value Market Research, the global plastic pallets market was valued at around USD 6,500 million in 2019 and is estimated to grow at a CAGR of about 5.25 % during the forecast period of 2020-2026.
In addition to this, the rapidly growing automobile industry across the globe is also predictable to enhance market demand in the forecast period. The heavier plastic pallets are preferred owing to the everyday handling and shipping of heavier components from the suppliers’ facilities to automobile assembly facilities. For instance, According to the International Organization of Motor vehicle manufacturers (OICA), in 2019, sales of passenger cars increased by about 5% and reached 69.5 million units. Also, the commercial vehicles category showed a constant rise as sales reached 24 million units in 2019. As per the India Brand Equity Foundation, Globally, India is the fourth-largest auto market in 2019, displaced Germany with over 3.99 million units sold in the passenger and commercial vehicles segments. Domestic automobile production augmented at 2.36% CAGR during the time period FY16-20, with 26.36 million vehicles being manufactured in the country in FY20.
However, the volatility in raw material prices may hamper the global plastic pallets industry in the long run. Also, the strict regulation towards the use of plastic is also negatively impacting the market. The current industry trend, such as increasing advancements in the transport and logistics industry coupled with growing government attention towards reusing and recycling packaging products, is expected to provide lucrative market opportunities for the key market players in the coming years.
The Plastic pallets market is vast, with a large number of local and global players. The key leaders follow several strategies to improve their market position, such as increasing product portfolio, expansions, mergers, acquisitions, and product innovations to enlarge their market share at the global level. For example, In February 2019, The TBA Plastové Obaly S.R.O. had launched perforated Euro containers to increase its client base. These containers have several applications in various end-user industries, particularly for storing and transporting food products. The key players included in the report are Orbis Corporation, Rehrig Pacific Company, Monoflo International, TBA Plastové Obaly S.R.O, CABKA Group, Greystone Logistics, TMF Corporation, Allied Plastics, Inc., Polymer Solutions International, Inc., TranPak, Inc., and Perfect Pallets.
In this research report, the plastic pallets market is segmented by material, type, end-use, and region.
Analysis by Material:
By material, the report is categorized into high-density polyethylene, low-density polyethylene, polypropylene, and others. The High-density polypropylene (HDPE) dominates the material segment in 2019 with a maximum market share of 65%. It is due to the extensive adoption by the end-user industries owing to the numerous benefits it provides, such as HDPE pallets are easy to clean and offer robust impact resistance, along with strong corrosion and solvent resistance. Moreover, it requires low labor-intensive system calibration and removes extended equipment training and probable human errors, thus contributing to the material segment's growth in the forecast period.
Analysis by Type:
By type, the report is categorized into nestable, rackable, stackable, and others. The nestable pallets segment is accounted for the largest share of 40% in 2019. It is due to the growing demand as it can be nested into each other, due to which they occupy lesser space during return freight and prove to be cost-efficient as compared to other pallet types. Moreover, the increase in demand due to its ability to render immediate test results and faster turnaround time contributes to the growth of the nestable pallets segment in the forecast period.
Analysis by End-User:
By end-user, the report is categorized into food & beverages, chemicals, pharmaceuticals, petroleum & lubricants, and others. The food & beverages segment is accounted for the largest share of 22.5% in 2019. It is due to the rising agricultural companies and farmers to handle fresh produce and rising demand from various food sectors such as bakery, dairy, beverage, meat, and other food processing companies to handle, store, and transport raw and processed end products. Moreover, the ever-expanding food and beverage sector globally contributes to the growth of the food & beverages segment in the forecast period.
Analysis by Region:
In the regional outlook of the global plastic pallets market, the Asia Pacific region dominates with a maximum market share of 30% in 2019. It is due to the rapidly expanding industrialization and robust manufacturing sector in China and India, coupled with the massive growth of e-commerce in the region. Moreover, the growing food industry and outsourcing of the manufacturing facility of several global firms to India and China contribute to the plastic pallets market's growth across the Asia Pacific.
Market Segmentation covered in the Report:
- High-density Polyethylene
- Low-density Polyethylene
- Food & Beverages
- Petroleum & Lubricants
- North America
- the Asia Pacific
- Latin America
- The Middle East and Africa
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