Pallets: Key market research findings
- Increasing manufacturing output to drive growth in the market
- Wood pallets segment to account for a majority of the market share
- Key vendors – Brambles, LOSCAM, ORBIS, Rehrig Pacific, and Schoeller Allibert
Technavio’s market research analysts predict the global pallet market to grow at a CAGR of almost 5% between 2016 and 2020. The recent increase in manufacturing output is the primary driving force behind the growth of this market. The growth in manufacturing sector and the resultant need to transport materials, including exports, will propel the demand for pallets during the forecast period. The Americas is expected to dominate the global pallet market in 2020 by accounting for a market share of almost 45%. Growth in the manufacturing sector, a rebound in the housing and construction sectors, and an increase in industrial output and exports are some of the factors that will contribute to the growth of the pallet market in the Americas during the forecast period.
The new market research report from Technavio also presents a breakdown and analysis of the pallet segments based on the product type.
“At present, the preference for block pallets in the market is witnessing an upsurge as large retailers are shifting to block pallets over stringer pallets. This trend is augmenting the growth of large pallet poolers such as CHEP and PECO, which only deals in block pallets. Prominent retailers like Costco and Wallmart are some the key end users of block pallets in the market in the US,” says Sharan Raj, Lead Analyst, Transportation & Logistics, Technavio Research.
The wooden pallets segment accounted for an estimated 91% share of the market in 2015 to become the major contributor in the global pallet market. Wood pallets are strong, durable, inexpensive, highly customizable, and are available in a variety of sizes and strengths. This segment of the market is thriving as the majority of the consumers prefer wood pallets owing to their versatile and cost-effective nature. The majority share of the demand for wood pallets comes from the food and beverage and consumer goods industries.
The key vendors in the market include Brambles, LOSCAM, ORBIS, Rehrig Pacific, and Schoeller Allibert. This market also consists of pallet manufacturers, pallet recycling specialists, pallet management companies, and pallet-pooling firms. In this market, the vendors compete based on customized pallets that they offer to meet the distinctive needs of customers. The market is also fragmented with many small family-owned players and is anticipated to witness huge investments by vendors in the development of new pallets through the adoption of new technologies, such as equipment tracking, and refining their service offerings. The increased adoption of modern logistics and the rapid growth of the retail industry is likely attracting new vendors into the market.
A more detailed analysis is available in the Technavio report, Global Pallet Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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