Perspective of Plastic Pallet Market: Growth and Maturity Opportunities

If we were to answer the question, “Where is the plastic pallet market heading?”, we would

have to say that the plastic pallet market is highly diverse and developing rapidly, with sectors

exhibiting different levels of maturity and growth potential. As one of the key tools in

transportation and warehousing, these pallets have gained an important position in the global

market in recent years.

It has been a long time since more mature sectors, such as automotive

and beverage industries, have recognized the advantages of plastic pallets in terms of features

such as durability and longevity, light weight, hygiene and safety, and have largely replaced

plastic pallets with their traditional counterparts.

The affordability and ease of transportation of lightweight plastic pallets, such as Persian

Sanat’s Nest Pallets (NP), make them attractive to companies looking to reduce costs and

achieve environmental goals.

In this article, we intend to examine the outlook for the plastic pallet market in different

regions of the world, including Asia, Europe, America, and especially Iran.

Global markets of plastic pallet

According to the latest data and final report from Grand View Research, the global market of

plastic pallet is estimated to be worth $7.3 billion in 2022 and is expected to expand at a

compound annual growth rate of 5.6% from 2022 to 2030.

Hygienic and durable pallets are used in the food and beverage, pharmaceutical and chemical

industries. The increasing focus on finding new ways to transport goods and products based

on sustainable development will increase the demand for reusable packaging, which in turn

will enhance the demand for plastic pallets made from recycled plastic. The United States is

a key country in the North American plastic pallet market in 2022 due to its high commercial

value of pallet production. The country’s trade value reached $3.7 trillion in 2020, with $1.4

trillion coming from exports and $2.3 trillion from imports. The United States is recognized

as one of the top importing countries, along with other key producing and importing countries

including China, Germany, Japan, Canada, and Mexico.

According to statistics, in last years, nested pallets have dominated the market and accounted

for the largest revenue share with 43.7% in 2022. Nestable pallets can be placed inside each

other, so they take up less space during the transportation process and are more cost-effective

compared to other types of pallets. In addition, nestable pallets are less expensive than

industrial and sanitary pallets, which makes them a more suitable option for supply chains

transporting and storing goods and products.

Research also indicates that food and beverages, among various industries, are the top buyers

of plastic pallets and accounted for the largest revenue share with 23.4% in 2022. In the food

and beverage industry, plastic pallets are used by agricultural companies and farmers to

produce fresh, bakery, dairy products, beverages, meat, etc. Other food processing companies

also make use of these pallets to store and transport raw and processed finished products.

Plastic pallets are increasingly preferred over wooden pallets in food industry for the reason

that they do not have nails or chips in their structure, otherwise they could damage food

products.

Based on the points and statistics mentioned above, we will examine the different dimensions

of global markets in different parts of the world.

Asia: Developing market with high demand

In addition to America, Asian countries play a key role in the growth of this global market

as one of the largest consumers and producers of plastic pallets. Leading countries such as

China, India, and Japan have a huge demand for plastic pallets due to the rapid growth of the

logistics and e-commerce industry.

• China: Due to its large manufacturing industries, China has urgent need for efficient

warehousing tools. Increased exports and improved logistics infrastructure have led the

plastic pallets to quickly gain a special place in this country.

• India: The growth of e-commerce and the emergence of large logistics companies such

as Flipkart and Amazon have increased the need for modern and efficient warehousing

in this country. Considering its climate conditions, plastic pallets with high resistance

to moisture and weather conditions are an ideal choice for this market.

• Japan: Japan’s automotive and electronics industries need modern transportation tools.

The country’s high-quality standards have led to an increased demand for plastic pallets

with advanced design.

• Middle East and Iran: Given the growth of the oil and gas, petrochemical, and food

industries in this region, the increasing demand for modern warehousing and

transportation tools is paving the way for the development of this field. Moreover, with

the rapid growth of logistics infrastructure and increasing export volumes, these

countries have turned to using plastic pallets. The durability and resistance of these

pallets in high temperature is also one of the main factors in their use in this region.

Europe: Focus on recyclable, environmentally-friendly products and sustainable development

European countries are leading the use of plastic pallets due to their emphasis on

environmental protection and sustainable development. European companies are looking to

replace wooden pallets with recycled plastic ones to reduce their carbon trace.

The good news is that all pallets and pallet boxes produced by Persian Sanat can be

manufactured with recycled materials. This commitment to using recycled materials helps

companies achieve their sustainability goals while reducing their environmental trace.

Among European countries, Germany and France have created a large market for plastic

pallets due to their advanced logistics infrastructure and strict environmental laws. Germany

is particularly leading in the production of recyclable and lightweight plastic pallets. With the

growth of e-commerce and the need to ship goods quickly, plastic pallets are being used as

an effective and sustainable solution in warehouses and distribution centers in the UK too.

One of the most significant key developments in Europe in the field of production and

consumption of plastic pallets is the use of new technologies such as RFID in these pallets to

track goods and improve supply chain management. This approach not only increases

productivity but also reduces operating costs.

Based on the points raised, the plastic pallet market has many opportunities for growth and

maturity in different regions of the world. While Asia and the US have focused on innovation

and productivity, Europe has taken a sustainable and environmentally-friendly approach.

Despite the challenges, The Middle East and Iran also have great potential to develop this

industry. It can be said that as the transportation and warehousing industry continues to

evolve, plastic pallets will play an unparalleled role in increasing efficiency and reducing

costs.