INDIA PALLETS MARKET ANALYSIS

India pallets market was valued at US$ 946.8 Mn in 2022, exhibiting a CAGR of 6.8%  in terms of revenue, over the forecast period (2023 to 2030) to reach US$1,604.5 Mn by 2030. Pallets are logistic equipment widely used across the warehouse to carry the load during material handling by using machines such as forklifts. The use of pallets ensures better handling and strapping of the goods and they are available in different materials such as plastics, wood, metal, composite wood, and paper. They are mainly manufactured in rectangular shapes roughly around 1 square meter.

India Pallets Market- Impact of Coronavirus (Covid-19) Pandemic

Measures such as lockdowns and cease in economic activities have reduced the discretionary spending of a consumer, which has in turn impacted the sales of non-essential goods. However, packaging solution and service provider have shifted their offerings towards the pharmaceutical industry which has resulted in an increase in demand for pallets during the COVID-19 pandemic. This is expected to boost the demand for pallets market in India during coming years

Figure 1. India Pallets Market, By Structural Design, 2022 

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India Pallets Market- Drivers

Rapid growth in the manufacturing industry in India

• Rapid growth in the manufacturing industry in India is predominantly propelling the market growth. Manufacturing has become one of India's high growth industries, according to the India Brand Equity Foundation. By the end of 2020, India is anticipated to overtake China as the fifth-largest manufacturing nation in the world. By 2022, the government wants the industry to account for 25% of the GDP and create 100 million new employment.
• Increasing development of the warehousing industry

The increasing development of the warehousing industry in India is expected to drive the market growth. An increase in the overseas trade coupled with the expansion of the warehousing industry in India is another major factor expected to propel India pallets market growth. Moreover, improvement in the supply chain management is creating demand for warehouses which in turn is augmenting the market growth.

For instance, in July 2022, Associated Pallets, one of the global leaders of the wooden pallets market, clarified that its products are made from a combination of hardwood and softwood  As a result, they have the inherent strength needed for product storage and transportation, and they produced goods that fulfil all ISO high quality criteria.

India Pallets Market- Restraints

International trade having strict regulations regarding the production of plastic

A decline in international trade from India ,these include factor endowments and productivity, trade policy, exchange rates, foreign currency reserves, inflation, and demand. is projected to hamper the market growth of the pallets.  In September 2020, Menasha, through its subsidiary ORBIS Corporation, launched a new Odyssey pallet. The Odyssey rackable pallet is designed for heavy-duty racking applications and holds more than 2,800 pounds in unsupported racking. The product is available in 40 x 48 inches size and also includes optional molded-in frictional elements and steel reinforcements

India Pallets Market- Segmentation

On the basis of structural design in 2022, the Block Pallets segment accounted for the largest market share of 64.00% in terms of value. Block pallet is a type of pallet with 9 blocks of solid wood placed in all four corners of the pallet. Typically, the dimensions of a block pallet are 100 x 120cm, and it can be lifted using forklifts on any of the four sides. In comparison to stringer pallet, it is much stronger and durable.

India Pallets Market- Opportunities

• Increasing utilization of pallets in the pharmaceutical industry

The Increasing utilization of pallets in the pharmaceutical industry for storing and transportation of pharmaceutical products is projected to offer new market opportunities. Growing geriatric population coupled with the increasing prevalence of chronic disease is creating demand for healthcare products such as drugs and devices. The growth of India pallets market is also attributed to the expansion of the pharmaceutical industry. In November 2021, UFP Industries, Inc. (Pallet One) acquired Ficus Pax Private Limited which is a leading manufacturer of wooden pallets,nail-less plywood boxes mixed-material, cases and crates and other packaging products.

India Pallets Market- Trends

Expanding e-commerce

Rising demand for logistics services in the e-commerce sector as a result of the rising trend of digitization and online shopping is anticipated to support market expansion. Increasing consumer expenditure on homes and other items as a result of rising disposable income is also anticipated to support market expansion. Additionally, the increase of the chemical industries is generating demand for chemical product logistics, which is boosting market expansion.

Figure 2. India Pallets Market, By Region, 2022 

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India Pallets Market- Regional Insights

On basis of states, other states dominated the India pallets market in 2022, reporting 31% market share in terms of revenue, followed by Maharashtra and Tamil Nadu, respectively.

India Pallets Market- Key Developments

• In November 2021, Kraftpal, a producer of durable, portable, and recyclable pallets, joined the campaign to develop corrugated cardboard pallets. These new pallets satisfy the same specifications as traditional wooden pallets while wood entirely from the key supply chains for logistics.
• In April 2021, Enviva, a significant market player with expertise in sustainable wood biofuels, and other parties reached an agreement to verify and develop eco-friendly carriers of large weight.
• In 2021, PalX, a new pallet pool, was launched in the U.S. by a group of pallet industry veterans. A group of pallet industry veterans has come together to launch Pooling and Logistics Experts (PalX), a new pallet pool in the United States. The team is comprised of recognized leaders and experts in white-wood pallet management, rental pallet programs, and the technologies surrounding these operations.
• The delivery chain service provider Geodis said in January 2022 that it had signed an agreement for five years with Unilode Aviation Solutions. They recognise that maintaining a fleet of containers, pallets, and galley carts may frequently be mission-critical, with the possibility of unexpected costs and operational difficulties always present. Containers and pallets are provided by Unilode to Geodis, along with the entire suite of ULD management solutions the company offers. It includes services such as obtaining goods, logistics, maintenance, and digitization for the delivery, oversight, and repair of unit load devices (ULDs).

India Pallets Market- Key Players

Major players operating in India pallets market include Saraswati Engineering Limited, Schoeller Arca TIME Material Handling Solution, Mekins Group, Swift Technoplast Private limited, Doll Plast Pallets, JIT Wood Packaging, LEAP India Pvt. Ltd., Spanco Enterprises, Bharadwaj Packaging Private Limited, Aristoplast Products Pvt. Ltd., B.D. Industries (India) Pvt. Ltd., Total Pack, and DNA Packaging Systems

*Definition: Pallets are an important tool across the logistics industry. It is a flat platform that can carry the load in the warehouse. They are basically used to store, protect, store, and transport materials during material handling. It is a portable platform and improves the operational efficiency of the warehouses by enabling easy movement of stacked goods.