Pallets Market is Anticipated to Exhibit a Healthy Growth CAGR of 5.4% by 2025
Originally published on Business Services News
Demand for pallets is gaining healthy traction owing to increasing urbanization in emerging countries such as China, Brazil and India, implicating the establishment of better and safer goods transportation system in large-scale industries such as food & beverages, pharmaceuticals and agriculture in these nations.
According to Persistence Market Research’s new report, the global pallets market, which is currently valued at over US$ 47,337 Mn is expected to register a CAGR of 5.4% between 2017 and 2025 to reach a valuation of US$ 76,067.2 Mn. During this eight years of the forecast, the market will be primarily driven by increasing global standards of goods transportation operations that is necessitating the adoption of pallets to a significant extent.
PMR’s report, titled “Global Pallets Market Global Industry Analysis 2012 – 2016 and Forecast 2017 – 2025” projects that growth of the retail and automotive sectors in regions such as Asia Pacific and Latin America is likely to boost the growth of the global pallets market over the next couple of years. The market in Asia Pacific is anticipated to present lucrative growth opportunities for pallet manufacturers.
Moreover, growing number of supermarkets and hypermarkets is also leading to widespread adoption of pallets in the region. Pallets facilitate easier and faster movement of large quantities of consumer products from inventories to display cabinets. In terms of value, Europe and North America are expected to retain their leading positions in the global pallets market over the forecast period, as these two regions were early adopters of pallets.
PMR report further cites that leading players in the market are focused on geographical expansion through acquisitions and mergers in an effort to increase sales. Companies are also concentrating on strengthening their distribution network in order to maintain a competitive edge in the global market.
Brambles Ltd., Falkenhahn AG, Cabka Group GmbH, Palettes Gestion Services, PalletOne, Inc., Schoeller Allibert Group B.V., Corrugated Pallets Company, ORBIS Corporation, Craemer Holding GmbH, Rehrig Pacific Company, Inc., Edwards Timber Company, Inc., Shanghai Lika Plastic Pallet Manufacturing Co., Ltd., Tasler, Inc., World Steel Pallet Co., Ltd., Arrington Lumber and Pallet Company, L.C.N Inc., Industrial Pallet Corporation, Loscam Australia Pty Ltd, PECO Pallet, Inc. are some of the prominent companies operating in the global market for pallets. Many of these companies are further improving their product portfolio by developing new products that are more efficient and have greater functionality.
Based on structural design, block pallets are the most widely used pallets across the world, however, in North American stringer pallets are favored more. In terms of value, block pallets are expected to account for the largest share of the market over the forecast period. By material type, wood is currently the most preferred material for manufacturing pallets. This is primarily owing to its massive benefits in terms of response time and low startup cost for customized designs. Nevertheless, demand for plastic pallets is expected to grow at an impressive rate during the forecast period. By end-user, the food and beverage sector accounts for the largest value share of the market and is expected remain dominant throughout the assessment period.