Plastic Pallets Market: North America Is Expected To Witness A Significant CAGR From 2021 To 2028
Plastic Pallets Industry Overview
The global plastic pallets market size is expected to reach USD 10.4 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 5.6% from 2021 to 2028. Increasing demand for robust, long-term, contamination-free, and eco-friendly packaging, which accounts for a low cost per trip in the longer term as compared to expendable packaging coupled with a steady expansion of end-use industries is expected to fuel the growth to the market.
Plastic pallets are typically made from robust materials, including polypropylene (PP) and high-density polyethylene (HDPE), and are primarily intended for multiple trips rather than a single trip. Plastic pallets are made from virgin and recycled plastic resins. Virgin resin-based skids offer superior performances. However, recycled resin-based pallets are less expensive and more sustainable, due to which they are generating considerable traction within the market.
Plastic pallets can be easily cleaned with high-pressure jet spray and demand minimal maintenance, unlike wooden pallets. Besides, wood pallets are highly susceptible to moisture and pose a risk of sheltering bacteria, pests, or fungi, which can damage stacked food and pharmaceutical goods. Moreover, splinters or protruding nails of wooden pallets have the potential to break or tamper the pharmaceutical packaging, due to which, end-use companies are increasingly opting for plastic skids, which poses no such risks and weights much lower than wooden skids.
End-use companies are increasingly opting for returnable pallets such as plastic 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 plastic pallets. Moreover, the steady expansion of automotive and other manufacturing activities across the world, wherein heavy-duty pallets are widely used, is likely to favor the growth of the PP and HDPE pallets in the coming years.
Plastic pallets are expensive compared to wooden skids; thus, their theft or misplacing increases the overall cost of material handling or product transportation. However, the advancement in technologies such as the incorporation of active RFID tags, Bluetooth, and the Internet of Things (IoT) interface has allowed easy and efficient tracking of skids throughout the supply chain, which in turn, is expected to attract end-use industries towards them in the coming years.
Plastic Pallets Market Segmentation
Grand View Research has segmented the global plastic pallets market on the basis of material, type, end-use, and region:
Based on the Material Insights, the market is segmented into High Density Polyethylene, Low Density Polyethylene, Polypropylene, and Others.
- 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.
- 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.
Based on the Type Insights, the market is segmented into Nestable, Rackable, Stackable, and Others.
- 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.
Based on the End-use Insights, the market is segmented into Food & Beverages, Chemicals, Pharmaceuticals, Petroleum & Lubricants, and Others.
- 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.
- 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.
Plastic Pallets Regional Outlook
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile & 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.
Order a free sample PDF of the Plastic Pallets Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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