22 WESTERN PALLET
Global Pallet Market to Reach $88.69 Billion by 2026
The rising standard of operations in goods transportation is helping to increase the practice of palletization and is driving the growth of the global pallet market.
As per Fortune Business Insight’s newly published report, titled “Pallets Market: Global Market Analysis, Insights and Forecast, 2019-2026”, the pallet market, which was valued at almost US$ $60 billion in 2018 is anticipated to expand at 5.1% CAGR between 2018 and 2026 to reach nearly $89 billion. These global standards are expected to necessitate the adoption of pallets during the forecast period.
Wood Pallets Cover the Maximum Share
Among different types of pallet materials such as plastic and corrugated, wood pallets are anticipated to account for the largest share in the global market during the forecast period. These pallets are preferred over others owing to their massive benefits such as reduced startup cost and less response time in terms of customized designs. Other benefits offered by wood pallets is that they can be repairable and have high strength.
On the other hand, wood pallets have limitations regarding direct food contact for food safety compliance. Also, plastic pallets can offer improved durability, and as such are likely to gain traction in the forthcoming years. Plastic pallets are more durable and lightweight, which will augment their demand among consumers.
Market Registers Impressive Growth in MEA Owing to Saudi Arabia’s New Waste Management Technologies
The pallet utilization is expected to be high in Asia Pacific during the forecast years. In 2018, the market was valued at almost $15 billion and is anticipated to lead the global pallet market in the next few years. The region registers the highest adoption of plastic and wooden pallets for massive imports and exports of goods. Countries such as China and India are likely to be the most progressive markets in the forecast years.
The market in the MEA (the Middle East and Africa) generated a value of $6 b illion in 2018. The market is expected to grow in this region owing to the rising adoption of plastic pallets, especially in the logistics and transportation industry. Among countries in MEA, Saudi Arabia adopted novel technologies for waste recycling management. Furthermore, the country produced around 15 million tons of municipal waste every year. It is planning to continue adopting new technologies in order to reproduce and recycle plastic products for material handling equipment and industrial handling equipment.
Pallet manufacturers are paying a lot of attention to develop plastic pallets with the emergence of advanced technologies such as automation processes. Moreover, the demand for plastic pallets is increasing as these are easy to clean.
A lead analyst at Fortune Business Insights said, “As plastic pallets are environmental-friendly, new users are also expected to adopt these pallets in the forecast horizon.” He added, “Raising awareness about reducing carbon footprint is further increasing sales of plastic pallets, thus driving the pallet market.”
CHEP has adopted novel technologies to develop plastic pallets. The aim of the company is to offer lightweight and durable products across several industries.
People across the world are increasingly investing in infrastructural and housing activities consequently with rising per capita income and rapid industrialization. This, along with rapid urbanization, is driving the global market.