MARKET ANALYSIS
Plastic pallets are horizontal and rigid platforms that ease the storage and transportation of goods in various end-use industries. They are important tools in logistics industries. Reused polyethylene terephthalate (PET) or high-thickness polyethylene comprises plastic pallets. They have more benefits than pallets made of other materials. A plastic pallet has a more than ten-year lifespan compared to its wooden alternatives. Further, it is manufactured through a one-step molding process. As a result, its wide applications in various expanding end-use industries worldwide fuel the market's growth in the predicted timeframe.
GROWTH DRIVERS AND CHALLENGES
The plastic pallets market is forecasted to grow significantly in the foreseen timeframe. Compared to other kinds of pallets, including material (or load) handling equipment, plastic pallets offer more durability, dependability, and space efficiency. These advantages encourage the use of plastic pallets, which will surge the revenue generated by the market under consideration. Pallets made of plastic typically cost less than those made of wood or metal. Plastic pallets are more space efficient. They are also more durable because they do not break or develop cracks. Further, when compared to wooden or metal pallets, plastic pallets are more adaptable in terms of design, allowing them to hold a wider variety of goods with various shapes and sizes. In addition, they are safer to handle because they don’t have sharp edges or rigid construction. All these factors cumulatively augment the growth of the plastic pallets market. However, one of the things hampering the market’s expansion is the regulatory requirements and rules regarding the usage of plastic pallets. In addition, factors such as the negative environmental effects of plastic due to inefficient disposal, high costs of plastic pallets, the availability of substitute products, and increased market competition hamper the growth of the plastic pallets market.
REPORT SEGMENTATION AND SCOPE
The "Global Plastic Pallets Market Analysis to 2030" is a specialized and in-depth study with a major focus on the global market trends and growth opportunities. The report aims to provide an overview of the global market with detailed market segmentation by material, type, end-use, and geography. The global plastic pallets market has been witnessing high growth over the recent past and is expected to continue this trend during the forecast period. The report provides key statistics on the consumption of plastic pallets worldwide along with their demand in major regions and countries. In addition, the report provides the qualitative assessment of various factors affecting the plastic pallets market performance in major regions and countries. The report also includes a comprehensive analysis of the leading players in the plastic pallets market and their key strategic developments. Several analyses on the market dynamics are also included to help identify the key driving factors, market trends, and lucrative opportunities that would, in turn, aid in identifying the major revenue pockets.
Further, ecosystem analysis and Porter’s five forces analysis provide a 360-degree view of the global plastic pallets market, which helps understand the entire supply chain and various factors affecting the market growth.
SEGMENTAL ANALYSIS
The global plastic pallets market is segmented on the basis of material, type, and end use. Based on material, the plastic pallets market is segmented into high density polyethylene, low density polyethylene, polypropylene, and others. On the basis of type, the market is classified as nestable, rackable, stackable, and others. The plastic pallets market is categorized on the basis of end use into, food and beverages, chemicals, pharmaceuticals, petroleum and lubricants, automotives, and others.
Based on the material, the high-density polyethylene sub-segment dominated the market in the forecasted time frame. End-use industries frequently use high density polyethylene pallets because they are simple to maintain, provide good impact resistance, and resistant to solvents and corrosion. Due to resistance to solvents and corrosion, HDPE pallets are easy to clean. It can withstand rough handling by forkits and other material handling tools because high density polyethylene is highly durable and offers excellent impact resistance. In addition, high density polyethylene has strong weather and chemical resistance, which makes them appropriate for use in food and pharmaceutical industries. Further, the demand for recycled high density polyethylene is anticipated to surge in the next years due to end-use companies’ increased preference for sustainable material handling solutions as a result of rising strict laws on the use of plastic packaging due to environmental concerns.
REGIONAL ANALYSIS
The report provides a detailed overview of the global plastic pallets market with respect to five major regions, namely, North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA) and South & Central America. Asia Pacific is anticipated to dominate the plastic pallets market in the predicted timeframe. The presence of nations that are a part of the Trans-Pacific Partnership Agreement (TPP) has made Asia Pacific a hub for the manufacturing industry. Over time, demand for plastic pallets has surged because of the TPP, a free trade agreement that has improved the trade and manufacturing sector among the economies in the region. Countries including China and India are anticipated to have a substantial opportunity to expand over the foreseen period. The second largest share in the plastic pallets market belongs to North America due to the surging demand for plastic pallets from end-user industries, particularly in the domestic supply. With the help of agreements, including the North American Free Trade Agreements (NAFTA) and the United States-Mexico-Canada Agreement (USMCA), trade between the US, Mexico, and Canada has been rising year-on-year.
INDUSTRY DEVELOPMENTS AND FUTURE OPPORTUNITIES
Partnership, acquisitions, and new product launches were found to be the major strategies adopted by the players operating in the global plastic pallets market.
- November 2022: Avery Dennison Label and Packaging Materials partners with Tosca’s plastic pallets to distribute its materials, aiming to reduce CO2 emissions across its European supply chain by over 800 tons every year.
- January 2022: Greystone Logistics, Inc. (OTCQB: GLGI) has commenced shipping pallets for a recently received $13.5 million purchase order to provide 100% recycled 48x40 plastic shipping pallets for a nationwide retailer at one of their U.S. warehouse distribution centers.
IMPACT OF COVID/IMPACT OF GEOPOLITICAL SCENARIO/IMPACT OF RECESSION
The various export and import restrictions imposed in many countries during COVID-19 have impacted the supply chain of the plastic pallets market worldwide. In addition, the government restrictions on trade have decreased the use of plastic pallets. Due to transportation restrictions and the closure of distribution channels, the market for plastic pallets has seen a decline in revenue and sales. The production of plastic pallets declined as a result of the lockdown because manufacturing units were shut down, and there was a manpower shortage. Further, due to restrictions on transportation and concerns regarding the virus spreading through surface contact, the return policy for plastic pallets has been significantly impacted. The decline in the growth of the plastic pallets market would have a domino effect and increase unemployment, which would then result in less growth and a decline in consumer expenditure. The market would consecutively be impacted by this since there would be less turnover. The sales and revenues of the market drop during a recession, which will force the market to stop expanding. As a result, there wouldn’t be enough demand, and the market would start to experience losses. These factors cumulatively hamper the growth of the global plastic pallets market.
COMPETITIVE LANDSCAPE AND KEY COMPANIES
Some of the key players operating in the plastic pallets market include Polymer Solutions International Inc., Monoflo International, Paxxal Inc., TMF Corporation, Tranpak Inc., CABKA Group, Allied Plastics Inc., Rehrig Pacific Company, Perfect Pallet, Inc., Orbis Corporation, Agrico Plastiques Ltee, Kamps Pallets Inc., Myers Industries Inc, PURUS PLASTICS GmbH, CTC Plastics, and Greystone Logistics Inc., among others.