Global Pallet Market to be Worth US$ 73.94 Billion by 2025
01 Mar 2019
According to recent report, published by Pallet Market, the global pallet market is set to increase in value to $73.94 billion by 2025. Demand growth will primarily spurred by a pickup in manufacturing and retail – especially in larger, more developed markets – as well as a shift towards higher-priced plastic pallets.
It should come as no surprise that global growth and sales within the pallet market has been fairly sluggish since the 2008 financial crisis. Growing demand from various industries such as food and beverages, pharmaceuticals and chemicals, along with the increasing use of pallets in transportation and storage are major factors now fuelling market growth.
Majority of this growth, particularly in manufacturing, is estimated to come from more developed economic regions, such as North America and Western Europe. This increase in demand is set to advance by 5.48% per annum through to 2025. It is also estimated in the report that stock growth, fuelled by greater demand in shipping requirements, will also be a major contributing factor to rise in value.
Plastic Set To Lead Gains
As perhaps to be expected, over the next six years the vast majority of pallet demand and production is still set to focus on wood. However, demand for plastic pallets is set to grow faster than of any other material type in most national markets.
The main benefit of plastic pallets is that they can be easily cleaned, lending themselves to to any products where contamination must be minimised. Safety compliance for the food and beverages and pharmaceutical industry is one of the major factors that is meant to drive demand in the market over the next six years. The report estimates that there is meant to be 9.42% over this period.
However, because of its lower cost, wooden pallets are still set to dominate the market and product sales in the vast majority of areas.
Asia Pacific Set To Be The Fastest Growing Market
The report also identified Asia as the area with the fastest growing market. High population, coupled with a huge growth in the manufacturing market (primarily in China) is expected to help drive demand for pallets in the region. Emerging countries, such as India and Vietnam, who mainly export commodities are also meant to drive demand within the region.