Plastic pallets offer several advantages over their wooden or metal counterparts. They are lightweight, easy to clean and affordable — for these reasons and more, the past few years have seen their adoption in an increasing number of applications. All indicators suggest that this trend will continue in the pallet industry.
Future Growth of the Pallet Industry
A recent report by Persistence Market Research, “Pallets Market: Global Industry Analysis 2012 – 2016 and Forecast 2017 – 2025,” has forecasted strong future growth for the plastic pallet industry. Here are a few of the key takeaways from this publication and what they mean for businesses in the warehousing, material handling and logistics industries:
- North America and Europe were the earliest widespread adopters of plastic pallet technology. The Asia Pacific market is the fastest growing, and it presents the most opportunistic potential over the next eight years. Growth has been slow in Latin American and the Middle East/Africa, in part due to a lack of manufacturers in these regions.
- The wooden pallet market has reached a saturation point. While they will continue to be the dominant type of product through to 2025, that dominance is expected to shrink as awareness about alternatives and subsequent demand for plastic pallets spreads.
- The expansion of the food and transportation market sectors — particularly in Asia Pacific — has fueled the majority of the growth of the plastic pallet industry. Other important industries include chemical processing and manufacturing, which value plastic pallets for their light weight and durability.
- Key players in the plastic pallet industry will grow their market share by introducing new technologies and improved designs as well as by collaborating with smaller manufacturers to gain a regional foothold in new territories.
- As the plastic pallet market evolves, it is likely that global standards will emerge. Major buyers have shown a preference for block pallets over stringer plastics. At the same time, the development of new technologies — such as RFID chip integration — is expected to propel growth as organizations seek to increase transparency and make their supply chains more data-driven.
- Users have identified easy cleaning, insect resistance, lack of splinters and limited import restrictions as advantages of plastic pallets over wooden models. The report cites nails as the primary source of injury when working with wood pallets, which has played a role in the shift to plastic products as companies try to reduce liability.
- As the plastic pallet industry grows, it is expected to create significant skilled job opportunities in major manufacturing hubs around the world.
Global Pallet Market Insights
PMR based its report on primary interviews with more than 50 industry experts, as well as an in-depth pallet market analysis of current sales and demographic data. The report’s authors also drew from secondary data to provide additional context about the overall size of the market as well as its players, products and associations.
For those of us in the industry, as well as any manufacturer or other business considering switching from wooden to plastic pallets, the entire PMR report is worth a read. To learn more about Polymer Solutions International, Inc.’s plastic pallets and how they can benefit your business, check out our product pages.
Polymer Solutions International, Inc. manufactures a range of different products that are easy to clean and built for long-term productivity. Keep browsing our website to explore your options or start a Live Chat session with us online or call us directly at 610-325-7500 for assistance.