Global Plastic Pallets Market to Experience Significant Growth
17 Jan 2017
It appears that the plastic pallets market is set to enjoy healthy growth in the next few years. There are a number of reasons for this, including plastic pallets’ ability to be part of automation processes that will be a significant trend in expansion of the plastic pallets industry. A report on the plastic pallets market has indicated that the demand for efficient handling materials from warehouses and the logistics industry will also account for a large part of the growth in this market.
Mechanised Efficiency
The use of plastic pallets makes it easier to move stacked products with forklift lorries and trucks. Being able to handle goods in this way allows the process to be faster and more efficient, while the plastic pallets additionally ensure that the goods remain intact by offering protection.
Then there is the trend towards automated handling of goods, which is also set to boost the use of plastic pallets. Benefits of automation include increasing the capacity of plants where goods are manufactured by raising the rate of distribution. The drawbacks of manual goods handling include the excessive time needed for loading and unloading, along with expenditure on labour and the mistakes that can be made. Automated methods have demonstrated a rise in economy and efficiency. Additionally, the plastic pallets industry is constantly examining ways of improving the efficiency of warehouses by incorporating technology into the handling of goods that lead to decreasing the costs of shipping.
Benefits of Plastic as a Material
Plastic pallets are primarily made of HDPE (high-density polyethylene) and PP (polypropylene). With a surface that is non-porous, these pallets do not absorb odours and can be cleaned easily. Another benefit is that they are easily adaptable for use in environments where rigorous hygiene must be observed. With this in mind, they are very suitable for industries such as pharmaceuticals and food manufacturing. Technology that tracks the movement of goods can also be efficiently applied to plastic pallets.
HDPE accounts for the vast majority of plastic pallets, being around 73 per cent of the market. Industries such as automobile manufacture and shipping rely heavily on HDPE pallets, as they can accommodate loads of great weight with a high ratio of strength to density. HDPE can also be incorporated into nestable pallets that can then offer protection to the goods, while the pallets themselves are hard-wearing, durable and resistant to damage.
Market Growth
A report from the leading research company Technavio has identified major trends in the market growth for plastic pallets. Titled Global Plastic Pallets Market 2016-2020, this report states that the market will grow at a rate of 7.1 per cent CAGR (compound annual growth rate) until 2020. In coming to this figure, researchers examined many factors driving the market, including important vendors across the globe and the main factors influencing users towards plastic pallets.
Ultimately, one of the greatest arguments for plastic pallets lies in reducing the costs of shipping. E-commerce has also emerged as a trend that will influence the development of logistics and shipping due to its specific requirements, such as having many items of varying dimensions and weights needing delivery to a wide range of destinations.