Global Outlook of the Plastic Pallet Market
08 Feb 2018
Plastic pallets are continuing to grow in popularity as research suggests that the plastic pallet growth trend will continue positively to 2020.
The benefits of plastic pallets far outweigh those of wood, and the ability to embed new technologies helps even more.
Read on as we look at the plastic pallet market growth predictions and the possible reasons why.
The Global Outlook for the Plastic Pallet Market
According to market research analysis firm Technavio, predictions show positive growth in this market. In fact, Technavio predict that the market may grow at an impressive CAGR of around 7% by the year 2020.
There are two main types of plastic pallet: high density polyethylene (HDPE) and polypropylene (PP). The former is the increasingly common pallet of choice, making up for 75% of sales in 2015. HDPE pallets can carry heavier loads and are more hygienic.
When it comes to geographical segmentation, in the year 2015 34% of all plastic pallet purchases were made in the Asian-Pacific region. This is due to fast growth in the warehouse and logistics industries of this region, notably in India, the Philippines and China – some of world’s biggest consumers in the plastic pallets market.
The future outlook and predictions show further market growth in this region, where industrialization and a modern logistics infrastructure have become commonplace in many countries.
Why Companies Are Increasingly Choosing Plastic
There are a huge number of reasons why companies are choosing plastic over the traditional option of wood, giving weight to the predictions for plastic pallet market growth. Firstly, plastic is more durable than wood – up to 42% more durable in fact.
This means less wear and tear, less need for replacements and significant cost savings over time. Furthermore, plastic pallets are up to 30% lighter than wood. Plastic doesn’t just minimize costs because of durability either, as the consistent size and shape and the nesting design make them easier to stack and saves huge amounts of floor space and space in transit.
They are also non-absorbent, making them easy to clean and making it easier to meet food safety standards. In terms of more recent effects on the trend, the option to embed RFID tags to help track shipments into the plastic pallets themselves is making them more popular than ever.
A prediction of 7% plastic pallet market growth by 2020 is not insignificant and proves that plastic pallets are the future choice as well as the current one. These pallets offer a huge wealth of benefits.
The industrialization of Asia along with an increasingly globalized shipping market as well as a need for hygienic, durable and space-saving pallets which can evolve with modern tracking technologies will contribute to the predicted significant growth in the plastic pallets market.