Plastic Pallets Market Size, Share & Trends Analysis Report By Material (HDPE, PP, LDPE), By Type (Nestable, Stackable, Rackable), By End-use (Food & Beverage, Pharmaceuticals, Chemicals), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global plastic pallets market size was valued at USD 6.7 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.6% from 2021 to 2028. Growing demand for hygienic, contamination-free, and durable pallets by the food and beverage, pharmaceutical, and chemical industries is expected to drive the market. Plastic pallets are made of durable materials, such as high-density polyethylene (HDPE) and polypropylene (PP), and are designed to facilitate mechanical handling of goods by the front loader, forklift, jack, and other material handling equipment. The initial investment for plastic pallets is considerably high compared to single-use wood pallets; however, with increasing trips, lower cost per trip can be achieved, which ensures a rapid return on investment.

The U.S. market is expected to exhibit significant growth on account of increasing government focus on strengthening their manufacturing sector through trade agreements and ‘Make in America’ campaign. Besides, the companies operating in the region are increasingly opting for sustainable business practices to strengthen their brand image.

Plastic pallets are expensive compared to wood pallets; thus, the risk of pallet theft or misplacing increases the overall cost of material handling. However, the introduction of active tracking devices, including RFID tags and Bluetooth, and the Internet of Things (IoT) has enabled efficient tracking of pallets and significantly reduced pallet loss. Therefore, the increased attractiveness of plastic pallets due to technological advancement is likely to fuel the market for plastic pallets in the coming years.

Plastic pallets are utilized for multiple trips without being disposed of after single-use, eliminating packaging waste going into landfills and making them highly sustainable, even though they are made from non-biodegradable material. Growing government focus on reusing and recycling packaging products coupled with increasing sustainability awareness among the consumers is expected to favor market growth.

The key parameter to select a pallet material, especially in the food and beverage and pharmaceutical industries, is that the material should be free from any contamination. Wood pallets have a high risk of sheltering bacteria, pests, or fungi, and the splinters or protruding nails of wooden pallets have the potential to break or tamper with the packaging. Thus, on account of the aforementioned shortcomings associated with wood pallets, plastic pallets are majorly preferred by the key end-use industries.

Material Insights

High-density polyethylene (HDPE) accounted for the largest share of 68.2% in the material segment by value in 2020. HDPE pallets are easy to clean, offer strong impact resistance along with robust solvent and corrosion resistance, due to which end-user companies widely prefer them. Moreover, HDPE pallets incur minimal or no damage due to rough handling by forklift and other material handling equipment. In addition, HDPE pallets offer robust weather and chemical resistance, which make them suitable for pharmaceutical and food applications.

The Polypropylene (PP) material segment is expected to witness the highest growth from 2021 to 2028, as they are extremely durable, which makes them ideal for heavy-duty application in a close supply chain. PP pallets are expensive compared to HDPE pallets; however, PP pallets can make a larger number of return trips than HDPE due to their excellent durability and, thus, prove to be economical in the longer term.

The high cost of PP pallets limits their applications as an export or one-way pallet; therefore, these are majorly employed in closed-loop applications. However, companies are increasingly opting for returnable pallets primarily to reduce plastic waste and address sustainability concerns caused by expendable or one-way pallets, which is expected to fuel the demand for PP pallets.

Type Insights

The nestable pallets dominated the plastic pallets market and accounted for the largest revenue share of 43.6% in the type segment in 2020. They can be nested into each other, due to which they occupy lesser space during return freight and prove to be cost-efficient compared to other pallet types. They are also less expensive than their rackable and stackable counterparts, making them ideal for export or open-loop supply chain application.

Rackable pallets are designed to store on the racks; these pallets allow the end-use companies to maximize their floor space as the pallets can be placed equidistant in vertical order on the racks. Rackable pallets usually have a picture frame or runner frame at the bottom, which enables the handling of heavy loads.

A stackable pallet, unlike a nestable pallet, has a solid platform as its base. These pallets are usually stacked upon each other while being returned to the source. Stackable pallets provide maximum stability to the loaded goods due to their structure, making them a preferred pallet choice for transporting goods over longer distances. The design of stackable pallets is sturdier than rackable pallets; thus, these are often used in heavy-duty applications.

In the automobile industry, heavier pallets are preferred due to the frequent handling and transportation of heavier components from the suppliers’ facilities to automobile assembly facilities. The steady expansion of automobile and heavy metal manufacturing industries is expected to impact favorably on demand for stackable pallets over the forecast period.

End-use Insights

The food and beverage end-use segment led the market in 2020, with over 23.4% of the global revenue. The demand was primarily driven by agricultural companies and farmers to handle fresh produce and by the bakery, dairy, beverage, meat, and other food processing companies to store, handle, and transport raw and processed end products.

In the chemical industry, plastic pallets are widely utilized for handling various powder, granule, and liquid form products. Plastic polymers such as PET, PP, ABS, and others; minerals; alloys; and chemicals are loaded, unloaded, and transported using pallets. The chemical industry majorly utilizes wooden pallets for export applications owing to their low cost and wide availability. However, from the past few years, chemical companies are increasingly preferring plastic pallets owing to their durability, sustainability, and hygiene.

The hygiene of packaging and material handling products is paramount in the pharmaceutical industry. Wooden pallets pose a risk of contamination as they can harbor bacteria and fungus and are hard to clean. On the other hand, plastic pallets offer strong chemical resistance and are safe from any contamination, which makes them an ideal solution for material handling in the pharmaceutical industry.

The global pharmaceutical industry has been growing at a considerable pace owing to the rising aging population, increasing incidences of chronic diseases, and the growing health consciousness, which, in turn, is expected to drive the demand for plastic pallets. Moreover, expanding production of generic pharmaceuticals is anticipated to advance the demand for plastic pallets in the pharmaceuticals' end-use segment.

Regional Insights

Asia Pacific led the market with over 32.3% of the global revenue share in 2020 and is projected to expand further at the fastest CAGR from 2021 to 2028. Rapid industrialization in the region and the exponential growth of e-commerce are few key factors attributing to the highest growth of the market in the region from 2021 to 2028.

North America was the second-largest market in 2020 and is expected to witness a significant CAGR from 2021 to 2028. Favorable trade agreements, such as the T-MEC between the U.S., Canada, and Mexico, are expected to boost manufacturing activities within the region, which is expected to drive the market in North America.

The European countries are extensively focusing on reuse and recycle and degradable packaging, besides, the EU (European Union) released its new ‘Circular Economy Action Plan’ on March 11, 2020, under which, they set a target of achieving all the EU market is using reusable and recyclable by 2030 in an economically viable manner. Such favorable initiatives are further expected to increase the penetration of reusable plastic pallets in the region.

Key Companies & Market Share Insights

The market is moderately fragmented with the presence of several small and medium-sized companies. Companies are increasingly manufacturing pallets from recycled plastic. CABKA Group, a Germany-based pallet company, manufactures its entire pallet portfolio from recycled plastic. For this, the company collects waste plastic from other companies, households, and municipalities.

Companies are also offering pallet renting programs to end-use companies, wherein, a pallet manufacturer delivers, tracks, and collect pallets. Such services allow end-use companies to rent pallets instead of complete ownership, which helps them reduce the material handling cost. Some of the prominent players in the global plastic pallets market include:

• Orbis Corporation

• Rehrig Pacific Company

• Monoflo International

• CABKA Group

• Greystone Logistics

• TMF Corporation

• Allied Plastics, Inc.

• Perfect Pallets, Inc.

• Polymer Solutions International, Inc.

• TranPak, Inc.

Plastic Pallets Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global plastic pallets market report on the basis of material, product, end-use, and region:

• Material Outlook (Volume, Million Units; Revenue, USD Million, 2017 - 2028)

  • High Density Polyethylene

  • Low Density Polyethylene

  • Polypropylene

  • Others

• Type Outlook (Volume, Million Units; Revenue, USD Million, 2017 - 2028)

  • Nestable

  • Rackable

  • Stackable

  • Others

• End-use Outlook (Volume, Million Units; Revenue, USD Million, 2017 - 2028)

  • Food & Beverages

  • Chemicals

  • Pharmaceuticals

  • Petroleum & Lubricants

  • Others

• Regional Outlook (Volume, Million Units; Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa