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Increasing Demand for Pallets

01 Dec 2017

Pallets are incredibly useful for the storage and efficient transport of goods, providing stability, support and protection for all kinds of items while they are in transit. Plastic pallets can be even more useful, as they are extremely hard-wearing, easy to clean, have lots of potential for recycling and are impervious to moisture. As shipping activity continues to increase globally, plastic pallet demand is expected to rise with this to satisfy an increasingly international population’s desire for items from all over the world.

stackable palletsThe market for pallets can be divided into segments, including plastic pallets, various types of wood pallets, cardboard pallets and metal pallets. Pallets are designed to be stackable and easily moved by forklift vehicles, front loaders and pallet jacks. The demand for pallets is forecast to generate a significant amount of revenue in the period to the end of 2021 and is predicted to increase at a substantial compound annual growth rate of 4.8 per cent in that period of time. These trends were highlighted recently in a report titled Global Pallet Market Analysis & Opportunity Outlook 2021.

Demand for Hygienic Pallets

The increase in growth of shipping in the food and drinks market sector in particular is expected to fuel the market in plastic pallets, as they are are especially well suited to shipping goods of this type, being able to meet strict standards of hygiene and cleanliness. In addition to this, rapid globalisation has also been a factor in food and drink shipments increasing, which in turn will increase plastic pallet demand. Shipping of medical supplies, which also require a high level of hygiene, could also have a positive effect on the plastic pallet industry.

World shipping is expected to increase generally in the next few years, corresponding with growth in the plastic pallet industry. E-commerce is expected to continue to drive the need for flexible shipping options too. Plastic pallet growth is not restricted to increases in food and beverage shipping, as increased trade in developing areas such as the Asia and Pacific regions are expected to drive plastic pallet growth with a rise in shipping of goods, expansion of the manufacturing sector and more warehouse and storage areas being built to accommodate the needs of more affluent urban populations.

Conditions in Emerging Markets

Construction is another market sector that has expanded generally and will drive up the consumption of shipped goods. It will also generate increased revenue and production by companies producing pallets in plastic. The demand for these pallets is also expected to rise in the Middle East and on the African continent as the volume of trade in these areas is expected to rise significantly.

Plastic pallets offer even more value in emerging markets, where storage conditions and weather could adversely affect wood or cardboard. The low weight of plastic pallets reduces shipping costs and energy use, leading to savings on overheads. And they can be designed to be used in-store, making them a multi-purpose resource. Uniquely suited to the demands of food, beverages and even medicines, pallets made of plastic offer versatility and durability in a light package.

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