By 2029 the Global pallet market will hit $95 billion. Encouraged by the adoption of new technologies and materials, the global pallet market is expected to grow at a healthy CAGR over the next decade, according to a new report.
Persistence Market Research (PMR) released new data in December that shows the worldwide pallets market will surge to a value of $95 billion by the end of 2029, growing at a CAGR of 5.6% through then.
PMR cited significant demand generated from manufacturers and retailers in the food & beverage, pharmaceutical, and chemical industries as the key factor in driving sales of pallets. The firm went on to say that the adoption of smart pallets, block pallets, and plastic pallets will progress at a considerable rate due to their benefits over conventional wood pallets.
“A majority of demand for plastic and block pallets is accounted by the food & beverage industry, which can be attributed to heightening sales of processed food products and increasing need for sustainable cold storage and transportation solutions,” PMR’s report summary stated.
The firm said the global market is also adjusting to the major adoption of radio-frequency identification (RFID) tags in plastic pallets, robots in processing and handling of pallets, and the emergence of alternative pallets.
PMR provided the following key takeaways from its global pallets market study:
Pallet sales in the Asia Pacific are identified to remain dominant throughout the forecast period and exhibit a higher CAGR in comparison to fellow regions.
The growth of manufacturing, infrastructural, and transportation sectors would remain pivotal to the build-up of the global pallets market.
Demand for pallets is concentrated predominantly in the food and beverage industry.
Wood-based pallets are identified to account for the majority of the market share owing to factors such as ease of availability of wood and better price-efficiency than other materials.
Plastic pallets are gaining prominence in the food and beverage, automotive, and pharmaceutical industries owing to their high strength, durability, lightweight, and long-term environmental sustainability.
Premier Handling Solutions is a leading provider of plastic pallets.