Plastic Pallets Market Size, Share & Trends Analysis Report By Material (High Density Polyethylene, Low Density Polyethylene), By Type (Nestable, Rackable, Stackable), By Application, By Region, And Segment Forecasts, 2023 - 2030

Plastic Pallets Market Size, Share & Trends Analysis Report By Material (High Density Polyethylene, Low Density Polyethylene), By Type (Nestable, Rackable, Stackable), By Application, By Region, And Segment Forecasts, 2023 - 2030

Plastic Pallets Market Growth & Trends

The global plastic pallets market size is anticipated to reach USD 11.20 billion by 2030, registering a CAGR of 5.6% from 2023 to 2030, according to a new report by Grand View Research, Inc. The global pallet market has been witnessing a considerable upsurge in growth from the past few years on account of steady growth in manufacturing activities globally. The increasing popularity of e-commerce has resulted in the growth of logistics activities and, in turn, surged the demand for pallets worldwide. Furthermore, increasing penetration of organized retail is expected to drive the demand for pallets as these are widely used in retail spaces for the loading and unloading of heavy merchandise and as a base structure for Point of Purchase (POP) display.

Pallets are commonly made by using wood, plastic, metal, and corrugated paper material. Among these, wooden pallets are majorly utilized by end-use companies owing to their low cost and high strength. Furthermore, plastic pallets are anticipated to witness high demand in the coming years as they are easy to clean, lightweight, majorly made from recycled plastic, and safe and hygienic for applications in the food and pharmaceutical industries.

Food and pharmaceutical are the major end-use industries of plastic pallets. In both industries, sanitation, and safety are given prime importance and therefore, plastic pallets are increasingly replacing wooden pallets. In the processed food industry, large volumes of raw materials are handled, stored, and transported on a daily basis and plastic pallets are majorly utilized for material handling throughout the manufacturing and transportation process.

The numerous manufacturers are shifting towards the manufacturing of plastic Pallets. For instance, in November 2022, Avery Dennison Label and Packaging Materials plan to change its original wooden pallet (the European size is 1200 x 800mm) to a plastic pallet for material packaging. The aim is to reduce 819 tons of carbon emissions in the supply chain every year, also plastic pallets inhibit microbial damage to products during transportation, thereby reducing waste

However, the demand for plastic pallets is significantly growing from end-use industries, however, several factors such as the high cost of plastic pallet and their sustainability issues are limiting their widespread penetration. It is estimated that wood Pallets cost approximately 33% lower than plastic pallets. In the U.S., a new 48”*40” GMA wooden pallet costs around USD 8-10, whereas a recycled 48”*40” pallet costs around USD 4 to USD 5. On the other hand, similar-sized reusable plastic Pallet cost around USD 20 to USD 25. Plastic Pallets are made from petroleum-based plastic resins such as HDPE, PP, LDPE, and others, whereas wood pallets are made from considerably cheaper softwood lumber.

Plastic Pallets Market Report Highlights

• High-density polyethylene (HDPE) material segment held the largest share of 68.2% in the global plastic pallet market in 2022 and is likely to retain its leading position by 2030. The HDPE is known for its versatility and is commonly utilized for making various products including bottles, automotive parts, furniture, and construction products
• Nestable Pallet accounted for the largest share of 43.7% in the type segment by value, in 2022. Nestable Pallet is lightweight and thus are easy to handle, however, these are not considered ideal for heavy-duty applications owing to their lesser strength as compared to other pallet types
• Asia Pacific was a key region in the global plastic pallet market with the highest share of 32.9% in 2022. The market is expected to advance at the fastest CAGR of 6.5% during the forecast period owing to the increasing product demand from manufacturing sectors in India, China, and Japan

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