Global Pallets Market Outlook, 2029

Pallets are a tertiary form of packaging that can be used in supply chains for stacking, storing, protecting, or transporting goods. They are used as a foundation for the unitization of goods for logistics and warehousing. These pallets can be made of wood, plastic, metal, or corrugated paper, and they can be handled with material handling equipment like forklifts, pallet jacks, or conveyors. They are used in nearly every supply chain, including industries such as chemicals, food and beverage, and retail. The unprecedented growth of the e-commerce industry is expected to drive significant demand for pallets. Furthermore, the increased emphasis on sustainable packaging and pallets is expected to drive the growth of the pallet market. The majority of pallets in use today are made of wood, and they are one of the largest contributors to municipal solid waste (MSW). Furthermore, waste wooden pallets are high in energy, which is typically lost during MSW disposal. As a result, companies are now implementing recycling techniques to reduce wood waste in pallet manufacturing. Companies such as Brambles, Ltd., in Australia, and CABKA Group GmbH, in Germany, for example, are working towards the production of fully recyclable or 100% reusable wooden and plastic pallets.

According to the research report, ""Global Pallet Market Outlook, 2029,"" published by Bonafide Research, the market is anticipated to reach a size of USD 97.36 billion, up from USD 69.67 billion in 2023. The market is projected to grow at a CAGR of 6.74% from 2024 to 2029. The growing demand for logistics services is being fuelled by rising smartphone sales, increased internet usage, and an expanding e-commerce sector, which is fuelling global pallet market growth. Furthermore, rising consumer spending on housing and infrastructure due to rising income levels, combined with rapid industrialization and urbanisation, is increasing global demand for pallets. Furthermore, manufacturers are investing in R&D projects to incorporate technological advancements into the pallet manufacturing process. For example, they have introduced multiple-trip pallets, which help to reduce trip costs, eliminate solid waste, and improve operational effectiveness. Plastic pallets have seen a tremendous increase in popularity due to their ability to be recycled and reused across a variety of industries.

North America, Europe, Asia-Pacific, South America, the Middle East, and Africa account for the majority of the global pallet market. Asia-Pacific leads the market in 2023 and is expected to maintain its dominance by the end of the forecast period. Asia Pacific is one of the pallet market's fastest-growing regions. Increased import and export activity in the region is one of the key factors driving market demand. Aside from that, the Asia Pacific pallet market is expected to grow due to the presence of emerging economies such as India and China in the region. Pallets are being purchased by agricultural firms and farmers to ensure safe and contamination-free product handling during transit, which is expected to boost market growth. Manufacturers, for example, are introducing multiple-trip pallets to reduce costs and improve operational effectiveness.

In addition, the growing demand for pallets from the pharmaceutical industry is expected to make the country an attractive market in the coming years. This is also due to the rising prevalence of lifestyle disorders in the country, such as obesity and diabetes. Pallets are used in the pharmaceutical industry because they reduce product contamination. To minimise the risk of contamination and product waste, drug and dietary supplement manufacturers use pallets. On the other hand, the construction industry has an enormous need for pallets for the regular storage and transportation of building materials such as blocks, bricks, and roof tiles. According to a survey, it was found that about 90% of the wooden pallets used in the construction industry are used only once, and because of this, wooden pallets are an increasing problem in the construction sector. The UK construction industry alone uses around 18 million wooden pallets every year. It takes nearly 6,000 hectares of forest to produce such a massive amount of wooden pallets, posing a threat to forest conservation. Based on end users, the market is segmented into food & beverage, chemical, pharmaceutical & healthcare, automotive, transportation & warehousing, consumer goods & retail, engineering, agriculture, and others. Among them, the Food & Beverage segment will be the market leader in 2023.



The global pallets market is anticipated to observe substantial growth going forward on account of increasing application in food and beverage, healthcare, and other industries. In addition, the rise in population, along with the growing disposable income of middle-class customers, is projected to drive the demand for food and beverage, medical, and personal care products. This, in turn, is anticipated to lead to a consequent increase in demand for the pallet market. Moreover, governments globally are focusing on the development of the manufacturing sector in order to increase the global economy. For example, the ""Made in China 2025"" initiative by the Chinese government and the ""Make in India"" initiative by the Indian government have positively propelled the manufacturing sector. The upsurge in manufacturing activities has stimulated the demand for a variety of plastic components as well as packaging solutions, thus providing remunerative opportunities for the pallet market. Also, disposable plastic pallets are widely used in the F&B industry as they are resistant to organic and inorganic chemicals at normal temperatures.

Based on the material, the global pallet market is segmented into various types, including wood, plastic, metal, corrugated, and others. Among them, wood will dominate the market in 2023. These pallets are preferred over others owing to their massive benefits, such as reduced startup costs and a shorter response time in terms of customised designs. Other benefits offered by wood pallets are that they can be repaired and have high strength. On the other hand, wood pallets are not sustainable in terms of food compliance. Also, these cannot be recycled; therefore, plastic pallets are likely to gain traction in the forthcoming years. Plastic pallets are more durable and lightweight, which will augment their demand among consumers. Surging demand for plastic pallets across industry verticals is expected to drive market demand. Wooden pallets have been used for decades due to their strength and ease of manufacture; however, due to certain disadvantages such as moisture absorption, less durability, and splinter breakage, the demand for plastic pallets is increasing. Furthermore, as logistic and shipping company’s transition from wood pallets to plastic pallets, demand for pallets is increasing due to benefits such as environmental friendliness, lightweight, and growing awareness of the need to reduce carbon footprint. Moreover, the increasing demand for HDPE material in the automotive and shipping industries, owing to its ability to handle heavy loads, is boosting the demand for pallets.

Various industries are showcasing an increasing requirement for material handling equipment, which acts as a boost for the overall market demand for the pallets market. The adoption of pallets with innovative technologies is a driving force for the market. Key market players are focusing on attaching RFID chips to track and monitor pallet movement. This adoption of this innovative measure is expected to grow market demand during the forecasted period. The RFID chips will help the customer measure the impact, humidity, and temperature to ensure safety. Plastic pallets are lightweight and environmentally friendly compared to wooden pallets. As a result, the demand for plastic pallets over wooden pallets is expected to increase the market share in the global pallets market as well. However, rising environmental concerns are decreasing the demand for wooden pallets during the forecasted period. In addition to that, increasing the adoption of smart pallets increasing deployment of smart pallets in most regions is expected to propel the demand for pallets in the coming years. Smart pallets comprise an RFID microchip placed inside the central plank of the pallet to collect information in real time. Smart pallets offer a solution for product tracking, asset tracking, and inventory management. In the coming years, the need for smarter pallets is anticipated to increase as the supply chain is likely to become automated. Moreover, the utilisation of pallets is gaining popularity among new users. Owing to the growth of the manufacturing, construction, warehousing, and construction sectors globally, pallet utilisation will readily increase.

Moreover, pallets can be manufactured using wood, plastic, metal, and corrugated paper, including recycled and new raw materials. According to the International Organization for Standardization, pallets are standardised in 6 sizes, including 1,219x1,016 mm in North America; 1,165x1,165 mm in Australia, Europe, and North America; 1,000x1,200 mm in Asia and Europe; 800x1,200 mm in Europe; and 1,100x1,100 mm in Asia only. Further, pallet pooling is the process of renting or leasing pallets from a shared pool. It helps reduce the costs involved in the transportation of goods and supply chain management. Evolving automation in distribution centers, leading to faster adoption of automated palletisation processes for effective cost savings and storage, is another factor fuelling the growth of the global pallet pooling market. The eventual shift to robotic palletisation processes with increasing usage of bots for transportation of goods to and from storage and different processing areas is also fuelling the growth of the pallet pooling market. Based on the application type, non-rented pallets will dominate the market in 2023 with more than 85% market share.

According to the report, stackable pallets will account for the largest revenue share in the type segment in 2023. As stackable pallets have bottom support so as to be able to be placed on top of another loaded pallet and provide stability during storage and transport, demands for them are increasing. On the other hand, nestable pallets can be nested into each other, due to which they occupy less space during return freight and prove to be more cost-efficient compared to other pallet types. They are also less expensive than their rackable and stackable counterparts, making them ideal for export or open-loop supply chain applications. Rackable pallets are designed to be stored on the racks; these pallets allow the end-use companies to maximise their floor space as the pallets can be placed equidistantly in vertical order on the racks. Rackable pallets usually have a picture frame or runner frame at the bottom, which enables the handling of heavy loads.

Pallets are portable, horizontal platforms that are employed for stacking, storing, and transporting goods. They are generally made up of wood, plastic, or fibreboard and can be categorised into block and stringer pallets depending on their size and configuration. They act as a stable base for products during handling and provide portability, storage space, and high strength. Owing to this, pallets are widely utilised in material handling across several sectors, such as machinery, food and beverage, construction, chemical, and pharmaceutical. Block configuration for pallets is leading the overall market with more than half of the market share.

Covid-19 Impacts:
Construction, industrial, lodging, and tourism businesses were all severely impacted by the COVID-19 pandemic. Manufacturing operations have been interrupted or limited. On a global scale, construction and transportation activities, as well as their supply networks, were disrupted. This resulted in a decrease in pallet manufacture as well as demand in the market, limiting the sector's growth. On the other hand, industries are gradually resuming normal manufacturing and service operations. This is predicted to result in the re-starting of pallet market businesses at full capacity, assisting the market's recovery by the end of 2021. The rise of e-commerce websites during the pandemic is also expected to facilitate the growth of the pallet market in the upcoming years. Infrequently replaced products like plastic and metal pallets will fare particularly poorly, while demand for wood pallets, although declining, will be sustained by replacement sales due to their shorter lifespan. While overall demand outlooks in the near term are negative, the e-commerce segment provides a relative bright spot. Concern over possible contagion at grocery stores and other retailers has driven consumers to increasingly order online where possible, and major e-commerce firms like Amazon have expanded their workforces in response to the pandemic.

Recent Developments:
• January 2023: Geodis, a supply chain provider, announced that it entered into a five-year unit load device (ULD) supply, management, and repair agreement with Unilode Aviation Solutions. Unilode supplies containers and pallets to Geodis and provides its full range of ULD management solutions, including procurement, planning, logistics, repair, and digitalization.
• January 2023: Kamps Inc., a pallet recycler and supplier, acquired Tritz Pallet, a company also offering pallet recycling and full-service pallet solutions. The acquisition enhances Kamps’ physical footprint to over 40 asset-based locations, solidifying its presence in the Great Plains region.
• In May 2023, Cabka signed a contract with Target, a significant US-based general merchandise retailer with close to 2,000 locations. For Cabka, the arrangement had significant value in terms of potential future earnings. The contract between Cabka and Target demonstrated Cabka's expansion strategy in the US, namely using the prospects in the big container and bespoke solutions areas.
• In March 2023, Cabka, a provider of pallets and large containers, and Dutch Star Companies reached a final agreement on a business combination to be listed as Cabka N.V.
• In February 2023, Drax Group starts operations at its Leola satellite pellet plant in Arkansas. The plant is the first of three new satellite pellet plants that the company plans for Arkansas. The plant cost the company USD 40 million.Furthermore, the company, with three plants, aims to increase the total wood pellet production to 120,000 tonnes annually.
• In December 2021, Unilode Aviation Solutions entered into a 5-year unit load device (ULD) supply management agreement as well as a repair agreement with Goedis, a supply chain provider. Unilode provides pallets and offers its complete range of ULD management solutions, such as planning, procurement, logistics, digitalization, and repair, to Geodis.
• In December 2021, supply chain solutions firm CHEP announced that it rented out and reused nearly 345 million wooden pallets utilised in the transportation of products, which lessened costs and reduced environmental impact. It partnered with a food and beverage company named Clover, which led to the reduction of CO2 emissions by nearly 56%, its wood usage by over 70%, and its waste by approximately 60%, which is equal to preserving 2,666 trees per year.
• In December 2021, a pallet recycler and supplier named Kamps Inc. acquired Tritz Pallet. Tritz Pallet is a provider of pallet recycling and full-service pallet solutions. This acquisition augments the physical footprint of Kamps to more than 40 asset-based locations, establishing its presence in the Great Plains region.

Product Introduction and Expansion:
• May 2023: Schoeller Allibert released WFOOceanIX, a new eco-friendly big box solution made from recycled fishing nets. Schoeller Allibert produced and named the product in collaboration with the global non-profit organization, Waste Free Oceans. The product emphasises Schoeller Allibert’s commitment to a sustainable circular economy.
• Creamer introduced the TC3-5 Palgrip in September 2021, a completely closed plastic pallet with a completely anti-slip coated top deck that prioritises safety and hygiene.TC3-5 Palgrip plastic pallets are safe to use and easy to clean, and all runners have chamfered edges on both sides for vigorous use in today’s fast-moving warehouses.
• Sep 2021: Menasha launched the Universal Container Pallet (UCP), a pallet developed to protect and transport foodservice products with ease. The product was released under Menasha's subsidiary reusable packaging company, called ORBIS. The product was added to its vast range of reusable plastic pallet offerings in Latin America. The 44-inch x 56-inch, two-piece, snap-designed injection foam UCP optimises daily operations in the food and beverage industry. The pallet’s plastic construction and flow-through rib design, which enables simple cleaning and drying, make the UCP an exhaustive solution for hygienic product distribution. This same plastic construction also renders the UCP 100% recyclable at the end of its useful life, thus building a sustainable supply chain.
• Loscam introduced the XPP-E1 cross-border plastic pallet in July 2021.Loscam aimed to assist their customers in better handling their cross-border logistics movements and offer cost-effective and sustainable logistic packaging solutions with the product. The new XPP-E1 has various applications, not only in food and beverage but also in electrical and electronics, healthcare, retail, and in general any sector that has export operations.
• Jun 2021: Craemer introduced the CR4-5, the newest 48"" x 40"" pallet model within its CR series, well-known for its sustainability and heavy-duty load abilities. The product is made using high-density polyethylene (HDPE) plastic and can be used universally across industries. The product features a one-piece design, making it robust. It consists of five runners (three longitudinal and two transverse), making it perfect for closed-loop material handling and food processing environments.

Acquisition, joint venture, and merger:
• May 2023: Millwood completed the acquisition of Cleveland Custom Pallet & Crate, Inc. With the acquisition, Millwood aimed to further extend its brand and Christian values and give its sales, sourcing, and operations teams’ opportunities to form new relationships in this area of the state and country.
• Nov. 20, 2021: Universal Forest Products acquired Ficus Pax, an industrial packaging producer. Ficus Pax has expertise in manufacturing mixed-material cases and crates, nail-less plywood boxes, wooden pallets, and other packaging products. The acquisition gave Universal Forest Products a solid position to grow their industrial packaging presence in India, the world’s fastest-growing economy, and a strategic market for their international expansion.
• Dec. 2020: Universal Forest Products acquired PalletOne, Inc., a leading manufacturer of new pallets in the U.S., with 17 pallet manufacturing facilities in the southern and eastern regions of the country. With the acquisition of PalletOne, Universal Forest Products aimed to scale across their existing footprint. Additionally, the acquisition also gave Universal Forest Products exceptional sourcing and design personnel that helped them gain synergies in those areas of the combined businesses.

Geographical Expansions:
• In December 2021, Tritz Pallets, a company that also provides pallet recycling and full-service pallet solutions, was purchased by Camps Inc., a pallet recycler and supplier.
• In May 2020, Craemer Group expanded its geographical footprint by investing £25 million in a second plastics injection moulding facility in Telford, UK. Craemer planned to develop its factory at Hortonwood West, creating up to 70 jobs and protecting the 65 positions at its existing Telford site, producing pallets, wheelie bins, storage containers, and transport containers.

Major Companies present in the market:
DS Smith, Smurfit Kappa group, Conitex Sonoco, Cabka Group GmbH, Menasha Corporation, Falkenhahn AG, UFP Industries, Inc, Schoeller Allibert Services B.V., Brambles Limited, Millwood, Inc., Loscam, Craemer Holding GmbH, KraftPal Technologies Ltd., Emirates Pallets factory LLC, PalletBiz, Abdulaziz & Saad Al Moajil Co., Al Rashed wood product , Myers Industries, Inc. , Tranpak Deliver Innovation, Elsons International

Considered in this report
• Geography: Global
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Global Pallet market with its value and forecast along with its segments
• Region-wise Pallet market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions & Countries covered in the report:
• North America (United States, Canada, Mexico)
• Europe (Germany, United Kingdom, France, Spain, Italy, Russia)
• Asia-Pacific (China, Japan, India, Australia, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, Saudi Arabia, South Africa)

By Material Type:
• Wood
• Plastic
• Metal
• Corrugated
• Others

By End Use:
• Food and Beverages
• Chemicals
• Pharmaceuticals and Healthcare
• Automotive
• Transportation & Warehousing
• Consumer goods and Retail
• Engineering
• Agriculture
• Others

By Application Type:
• Rental
• Non-rental

By Structural Design Type
• Block
• Stringer
• Others

By Type
• Rackable Pallets
• Nestable Pallets
• Stackable Pallets
• Others (Display Pallet, Collapsible Pallets)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Pallet industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.