PLASTIC PALLET MARKET ANALYSIS

Plastic Pallet MarketSize and Trends

The plastic pallets market is expected to be valued at 12,149 Million Units by 2030 and is expected to register a CAGR of 6.65% in terms of revenue over the forecast period (2023 – 2030). Plastic pallets are used in warehouses for storing raw materials as well as finished products conveniently, and for efficient handling and storage of products in various end use industries, such as food & beverage, pharmaceutical, chemical, and textile industries. Growing end use industries across the globe is expected to drive the growth of the market over the forecast period.

Global Plastic Pallets Market: Growth drivers

Rising Demand to Lower the Overall Weight of Bulk Packaging

The weight of the consignment or shipment during transportation is essential in determining the final product's cost. It is common to find that the product's transportation cost exceeds its production cost, reducing the overall profit margin. The weight of plastic pallets is significantly lower than that of wooden or metal pallets, which is expected to entice end user companies to use plastic pallets. The weight of a container or packaging used by a company to transport materials or products is referred to as its dead weight. More packaging weight equates to higher transportation costs, which is a constraint for manufacturers. This is expected to increase demand for low-weight packaging materials to reduce deadweights and improve material handling and transportation efficiency.

Figure 1. Global Plastic Pallet Market, By Pallet type 2022

Adoption of innovative pallets is driving the market

Global Plastic Pallets Market: Market segmentation

Among pallet type, rackable segment is expected to account for a significant market share during the forecast period, owing to high stability as rackable pallets are designed to provide maximum stability during storage. Owing to the picture frame design at the bottom of the pallets, these pallets have applications such as packaging and transportation of products in end use industries.

Global Plastic Pallets Market: Market Restraints

High Product Cost and Sustainability Issues

The demand for plastic pallets from end use industries is increasing significantly; however, several factors, such as the high cost of plastic pallets and their sustainability issues, limit their widespread adoption. Wood pallets are approximately 33% less expensive than plastic pallets. A new 48 "*40" GMA pallet costs around US$ 8–10 in the U.S., whereas a recycled 48 "*40" pallet costs around US$ 4 to US$ 5. On the other hand, similar-sized reusable plastic pallets range from US$ 20 to US$ 25. Plastic pallets are made from petroleum-based plastic resins like HDPE, P.P., LDPE, and others, whereas wood pallets are made from significantly less expensive softwood lumber. Furthermore, since wood pallets do not require expensive tooling, the less complex manufacturing process lowers the cost of wooden pallets. Plastic pallet manufacturing necessitates mechanical pallet design and an injection molding process that necessitates costly tooling, raising the overall price of the end product. For open-loop or export applications where the pallet is non-returnable, end use companies prefer low-cost pallets such as wood pallets over plastic pallets.

Figure 2. Global Plastic Pallet Market, By Region 2022