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The pallets market size is estimated to grow by USD 22.43 billion, at a CAGR of 5.3% between 2023 and 2028. The market growth analysis depends on several factors such as the increasing adoption of automation and robotics to ease pallet use in manufacturing processes, and the growing use of pallets in the e-commerce sector for efficient warehousing and transportation activities.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing adoption of automation and robotics in manufacturing processes is the key factor driving the market. Wood pellets have long been a staple in material handling, providing a robust and eco-friendly option. The integration of automation and robotics in production enhances precision and consistency, ensuring high-quality products that meet industry standards. Robotic handling systems and distribution centers have become an integral part of logistics and supply chain operations. In warehouses, automated guided vehicles (AGVs) and automated pelletizers are used to move and stack stocks.
Moreover, one of the key drivers of rising automated demand is efficiency. Automated pelletizing systems dramatically reduce the amount of time needed for material handling, resulting in increased throughput and lower operating costs. Furthermore, the scalability of pelletizing systems makes them attractive to a wide range of industries ranging from small businesses to large manufacturing plants. For example, market leaders such as Brambles Ltd., PGS Group, and others have developed robotic pelletizing systems. Thus, all these above-mentioned factors will drive the growth of the market during the forecast period.
Increasing demand for nestable and stackable pallets is the primary trend shaping the market. A nestable pellet has a unique design that allows it to nest or fit inside another when it is not in use. Nestable allows the end-users to save a lot of space during transportation and storage. This reduces shipping costs and storage costs for business owners. Stackable, however, are designed to securely stack on top of one another. This allows the user to significantly reduce loading and unloading time compared to handling individuals in the distribution center.
Additionally, one of the key factors driving the adoption of nestable and stackable is the increasing emphasis on supply chain optimization and logistics efficiency. Businesses are constantly seeking ways to streamline their operations and reduce costs, and these pellet types align perfectly with such objectives. The ability to maximize the use of available space both during transportation and storage is a major advantage of stackable, especially in industries with high-volume distribution needs. Thus, such factors will fuel market expansion during the forecast period.
Fluctuating prices of raw materials is a major challenge that affects market expansion. Wood is one of the main raw materials for the production. Wood prices are affected by weather conditions, logging restrictions, and global timber demand. Companies in the food and beverage, construction, and retail sectors that rely on wooden ammunition experienced unexpected financial losses, affecting their operational capabilities and market competitiveness. Furthermore, fluctuating raw material prices also affect the prices of plastic, another preferred material in the market for its durability and sustainability.
Consequently, prices of plastic resins, such as polyethylene and polypropylene (PPE), are affected by fluctuations in raw material prices. Factors such as oil prices, production capacities, and geopolitical events can affect the pricing strategies of companies in the market. Further, metals which are well-known for their durability and strength, are also affected by the volatility in raw material prices. Thus, such factors will restrict growth and will negatively affect the market during the forecast period.
The wood segment is estimated to witness significant growth during the forecast period. Wood plays a significant role as a key material segment within the market, which is a crucial component of the logistics and supply chain industry. Wood pellets are one of the most cost-effective materials available for the purpose of transporting and storing goods in different industries such as construction and chemicals. Wood is plentiful and relatively inexpensive when compared with other materials.
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The wood segment was the largest segment and was valued at USD 56.44 billion in 2018. The rising demand for wood is driven by the growth of industries such as manufacturing, retail, and agriculture. These sectors heavily rely on pellets for the transportation of goods from production facilities to distribution centers and eventually to retailers. Further, wood can easily be repaired, reused, and recycled. This is in line with the growing focus on sustainable and environmentally friendly packaging solutions as they provide a sturdy and stable base for stacking and transporting goods. Businesses are increasingly turning to wood due to the growing environmental concerns. Owing to these factors, the wood segment will fuel the growth of the market during the forecast period.
The market is a dynamic market, and they are an essential component of the food and beverage industry. This plays a crucial role in food and beverages in ensuring the efficient and safe transport of perishable goods. From raw materials to finished goods, they play a critical role in the handling and transportation of goods. They are especially important in cold chain logistics for perishable goods, where product integrity is a priority. Furthermore, pellets equipped with radio-frequency identification (RFID) or Internet of Things (IoT) technologies enable real-time tracking and monitoring of goods throughout the supply chain, contributing to enhanced traceability and reduced losses. Owing to these factors, the food and beverages segment will grow and will drive the evolution of the market during the forecast period.
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APAC is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Pellets, essential tools for material handling and logistics witness growing demand in the APAC region due to the rapid industrialization, urbanization, and expansion of supply chain networks. Wood is one of the primary raw materials used in the APAC market.
Moreover, wood has become the preferred product in the APAC market due to its affordability, availability, and recyclability factors. Countries such as China and India, which have a growing manufacturing industry, are major contributors to the regional market. Plastic is also gaining momentum in the APAC market. Plastic is durable, sturdy, and resistant to environmental factors. Japan and South Korea are major users of plastic pellets. Hence, such factors are expected to drive market growth in this region during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Brambles Ltd.: The company offers products such as upcycled pallets of half plastic that allow efficient in-store replenishment using standard pallet equipment.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
AUER GmbH, CABKA Group GmbH, Canada Pallet Source, Cargopak Ltd., Casadei Pallets Srl, Craemer GmbH, Dolav, Falkenhahn AG, HG Timber Ltd., Imbal Legno Snc, Nefab AB, Pallet Management Group Inc., PGS Group, Sacchi Pallets Srl, Schoeller Allibert, TESER SNC, Toscana Pallets Srl, UFP Industries Inc., and Van Leyen Pallets
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report encompasses the entire market adoption cycle, ranging from the initial innovator phase to the subsequent laggard stage. Market forecasting emphasizes adoption rates across various regions, determined by penetration levels. Additionally, the report outlines essential purchasing factors and factors influencing price sensitivity. This aids companies in assessing and formulating effective growth strategies.
Customer Landscape
The market research and growth report forecasts market growth and forecasting by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is a vital component of material handling equipment, serving warehousing & transportation consumers across various industry verticals. Pallet manufacturing companies like Schoeller Allibert Systems and Time Technoplast Ltd. innovate with RFID chips and smart technologies to enhance efficiency. The plastic segment dominates, offering durability and versatility in logistics and material management systems. Notably, the Schoeller Allibert Time (SAT) system integrates smart technologies for real-time tracking and monitoring. With the transportation and logistics industry relying heavily on pallets, the warehousing & transportation sub-segment drives demand. Pallets play a crucial role in optimizing material management and logistics, ensuring seamless operations in warehousing and transportation. As smart technologies continue to evolve, the pallets market adapts to meet the growing demands of modern supply chains.
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Pallets Market Scope |
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Report Coverage |
Details |
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Page number |
162 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.3% |
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Market growth 2024-2028 |
USD 22.43 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.11 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 49% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AUER GmbH, Brambles Ltd., CABKA Group GmbH, Canada Pallet Source, Cargopak Ltd., Casadei Pallets Srl, Craemer GmbH, Dolav, Falkenhahn AG, HG Timber Ltd., Imbal Legno Snc, Nefab AB, Pallet Management Group Inc., PGS Group, Sacchi Pallets Srl, Schoeller Allibert, TESER SNC, Toscana Pallets Srl, UFP Industries Inc., and Van Leyen Pallets |
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Market dynamics |
Parent market report analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Material
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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