Plastic Pallets Market Estimated to Experience a Hike in Growth by 2020
17 Mar 2017
The global pallet market is seeing a surge in demand from end-users. Although wood will still dominate as the main material used for pallets, the plastic pallets sector is set to experience the biggest area of growth.
The Importance of Pallets
Pallets are used by all types of industries to transport their goods from one place to another. They keep items safe during storage and transportation, and modern materials and packaging methods can reduce the impact of breakages or contamination. Around 80% of the pallets used today are made of hardwood or softwood, but the plastic pallets industry has also started to gain a foothold. As well as wood and plastic (high-density polyethylene), other materials used for pallets include polypropylene and polyvinyl chloride, metal, corrugated paper and composite wood.
An Increase in Demand
Pallets will always be used for transportation purposes, but experts believe that the pallet industry will see a notable surge in demand and growth by 2020.
This is being driven by more people wanting to use pallets, and an increase in investment in manufacturing facilities by emerging countries like China and India is also likely to contribute to the rise in demand for pallets on a global level. In particular, the plastic pallets industry is set to experience a boom in demand and growth during this time.
With end-users from the automobile and packaging sectors seeking to use more pallets, this extra demand is also likely to play a part in fuelling the growth of the wood and plastic pallets industry over the coming years.
Although the infrastructure facilities of some countries may have a negative impact on the growth of the pallets industry, it is thought that this will only be minimal and shouldn’t have too much of an effect on the general upward trend.
Material Growth
With the pallets market set to soar over the next few years, it is interesting to note that not all the material types used for pallets (wood, plastic, metal and paper) are likely to share equal proportions of growth. Wood currently dominates the pallets market, and this is unlikely to change over the coming years, but what we will see is a sharper increase in demand for plastic pallets.
Why is the plastic pallets market growth likely to be of significance? It could be that more and more end-users are recognising the benefits that using plastic pallets brings. As well as being reusable, plastic pallets are very durable and have a long shelf life. They won’t rot or rust. They are easy to clean and are not affected by bacteria, mould or germs, thus preventing contamination of products. A long shelf life also makes plastic pallets a very cost-effective option. Little wonder, then, that the plastic pallets market is likely to enjoy the biggest growth area.
Who Are the End-Users?
Which industries are fuelling the demand for pallets? The biggest group of end-users of pallets are the glossary manufacturing industries, who require safe, secure and convenient transportation of raw materials to the production line. Food and beverage businesses and the chemical, retail, automobile, cement and dairy sectors, amongst many others, also make use of pallets and are likely to be contributors to increasing demand.
In terms of country-specific data, North America experiences the largest market share for pallets, with Europe and Asia-Pacific following closely behind. Although North America will continue to dominate this sector, experts believe that the Asia-Pacific region will see the highest growth over the coming period, largely as a result of a rise in domestic demand from manufacturing businesses.