Pallets are weight-bearing structures that act as a rigid foundation for the transportation and storage of numerous materials and products that comprise the unit load. They are one of the most commonly used bases for stacking goods and are typically attached with stretch wrap, pallet collars, adhesive, or other measures of stabilization. Depending on the application, they are made from a variety of materials such as wood, metal, and plastic. Due to their characteristics, pallets are widely employed by a significant number of makers of commercial goods and shippers across the world.
The growth of the pallet industry is driven by the increase in the need for dependable packaging solutions among end users and the rise in demand for logistics services along with surge in smartphone sales and internet penetration. As per the reports published by Allied Market Research, the global pallets market is expected to reach $110.56 billion in 2027, growing at a CAGR of 5.1% from 2020 to 2027. Pallet consumption has increased rapidly, primarily in North America, Western Europe, and South-East Asia due to rise in demand for plastic wrappers in the regions and increased need for lightweight advanced designs.
Major acquisitions and developments in the pallets industry:
Furthermore, manufacturers have invested in research and development (R&D) initiatives to incorporate technical improvements into pallet manufacturing. For example, several companies have introduced multiple-trip pallets, which help to reduce cost per trip, eliminate solid waste, and improve operating efficiency.
Kamps Inc., a national pallet company acquired Total Pallet Solution (TPS) out of Texas, one of the leading pallet recyclers. The prime purpose behind this acquisition is to provide standardized pallet solutions to the customers on a national scale. Moreover, this strategic deal would enable TPS to grow its business in the region.
Orbis Corporation, an International leader, developed a new lightweight plastic top frame for inbound food and beverage applications that can be used to prevent products during the transportation process. The product is said to be more stable and easier to handle, ship, and store than available alternatives. This lightweight top frame is developed to protect products during their transportation by combining multiple separate packaged products for the convenience of handlers and shippers.
Such strategic investments have opened new doors of opportunities for end users in the pallet industry. Moreover, the awareness regarding sustainable products would define the future of pallets.
Upcoming opportunities in the pallet market:
The pallet market would witness several lucrative opportunities across the globe, especially in the Asia-Pacific region. The growing Indian economy presented several opportunities for the pallet market due to the growth of the manufacturing sector and rise in government initiatives such as ‘Make in India’. Furthermore, the development of the warehousing industry in the region would be fruitful for the pallets industry.
Pallets would be in high demand in the near future since they are essential to generate a cool atmosphere. The rise in deployment of smart pallets with an RFID microchip would supplement their demand. The availability of raw materials and convenience of recycling the material is expected to boost the demand for pallets. Additionally, the rise in international trade in various commodities such as dairy, cosmetics, chemicals, and electronic goods, among others, is expected to increase the demand for safe packaging solutions.
The majority of pallets are made up of wood and waste materials, which offers consumers a sustainable and biodegradable option for storage. The increase in demand for eco-friendly products and awareness regarding sustainable products would offer a golden chance to the growth of the pallet industry.