Plastic Pallets Market to experience CAGR growth of 7.12% by 2020
20 Nov 2016
Despite continuing economic uncertainty in some quarters, the plastic pallet industry has been growing rapidly in recent years. As manufacturers of plastic pallets look for ever more innovative ways to incorporate new and more advanced technologies into their warehouses and logistics operations, there has been a significant increase in demand for high-quality pallets which can be easily tracked and distributed.
As of 2015, the Asia Pacific region has accounted for 34% of the total pallet market share, and it remains the largest and fastest-growing area. The region’s growth is largely due to increased wealth and disposable income, which is fuelling packaging demands and has led to a rapid expansion of the logistic and warehouse industries in countries such as the Philippines, Japan, China and India.
The report predicts that industrialisation and the development of new and improved logistics infrastructure will continue to drive growth in this region in the coming years, thanks in no small part to increased e-commerce and the demand for more goods to be shipped ever greater distances.
An Exciting Time for the Industry
Plastic pallet growth has been so strong in recent years because the plastic pallet industry is a particularly innovative one. Manufacturers have been quick to adapt to a changing economic landscape and quick to adopt new, more advanced technologies to help boost efficiency and productivity.
High-density polyethylene (HDPE) pallets dominate the market with a 73% share, with the highest demand coming from the automotive and shipping industries. Because they have a high strength to density ratio, these HDPE pallets can handle extremely heavy loads and are used for a variety of purposes across a range of sectors. The majority are nestable and enable companies to transport more goods using fewer square metres, while their impact properties mean they are better able to protect the goods within and less likely to be damaged and require repair or replacement.
As companies everywhere become more environmentally aware and look for new ways to reduce their carbon footprint, a shift away from traditional wooden pallets towards more sustainable and hygienic packaging solutions is likely to see the plastic pallet industry continue to grow. The positive CAGR projections outlined in this report can only be welcome news to the plastic pallet and packaging sectors, which look set for an exciting and greener decade to come.