Pallet Pooling

Pallet Pooling

Pallets are flat portable and rigid platforms that can carry loads. Different types of pallets are used to pile up, store, assemble, and transport goods. Pallets are most commonly used for transportation and material handling and are ideal for logistics, material storage & warehousing, supply chain, and more and play a key role in boosting the warehouse’s operational efficiency. Furthermore, pallet pooling is a shared and reuse model which is based on a circular economy, where the user doesn’t have to buy or exchange pallets, but rather rents them and outsources the full pallet management.

The pallet pooling market is expected to grow at a steady CAGR of around 6% during the forecast period owing to the rising focus on increasing supply chain efficiency. Furthermore, the market is anticipated to witness significant growth during the forecast period owing to the rising trend of supply chain outsourcing by organizations. Moreover, with the rising digitalization, globalization, and consumer demands, trade in the economies is increasing, which is further boosting the demand for the pallet pooling market. For instance, on Feb 2023, as per the European Commission, by 2030, the global middle class, also termed the consumer class, is expected to reach 4.8 billion people - that is 1.3 billion more people with increased purchasing power than today. The rise of the middle class in emerging economies and the increase in business models targeting people at the ‘bottom of the income pyramid’, are collectively making consumption patterns an increasingly important force - which is shaping the global production and logistics system.

• Based on pallet type, the market is segmented into block pallets, stringer pallets, double face pallets, double wing pallets, and solid deck pallets. The Block pallets and stringer pallets are the two of the most widely used pallets in the industry where block pallets are used for heavy goods shipments and where a multi-step supply chain is involved due to their durability and sturdiness, whereas stringer pallets are preferred due to its lightweight and inexpensive cost.
• Based on pallet material, the market is segmented into wooden pallets, plastic pallets, metal pallets, and cardboard pallets. Among these wooden pallets are by far the most common type of pallet in use today and hold the majority share of the market. This domination is attributed to the fact that wooden pallets are the most cost-effective and easily customizable type of pallets. Additionally, they are easy to recycle as well as can be refurbished into new wooden pallets, making them an eco-friendly option as well.
• Based on end-user industry, the market is segmented into FMCG, food and beverages, retail and distribution, pharmaceuticals, manufacturing, logistics and transportation industry, and others. The logistics and transportation industry generates the majority of the demand for the pallet pooling market owing to the booming logistics industry, the factors responsible for this growth are increasing consumer demand, rising last mile deliveries with increased e-commerce and online shopping which, has further lead to increased production of goods and trade activities. Furthermore, with logistics industry broadening the scope of their business from transportation and warehousing to more integrated systems such as inventory management, warehouse management, material handling, packaging, and supply chain management is further contributing to the growth of the logistics and transportation industry which in turn is benefitting the pallet pooling market.
• For a better understanding of the market adoption of pallet pooling, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, India, Japan, Australia, Rest of Asia-Pacific), Rest of World. Europe region holds a significant share of the pallet pooling market, the major factor contributing to this growth is, Europe is one of the biggest producers of timber, producing about 100 million cubic meters of timber, and 90% of pallets are manufactured from timber. Furthermore, there are almost 4 billion wooden pallets, that are in circulation in Europe. Moreover, pallets are an essential element of the existing logistics worldwide, and with the rapid rate of globalization and increasing consumption, there has been a surge in the transportation of products within and across countries and continents, thus increasing the demand for pallets. In addition, pallet pooling is becoming popular as it is an ideal solution for an automated supply chain, and helps in optimizing the transport flow and reducing associated costs. Also, pallet pooling simplifies the logistics operations for the producers. Moreover, pallet pooling presents cost-saving opportunities to the suppliers, as there is an associated cost that comes with owning pallets in terms of inventory and handling costs, maintenance costs, as well as costs that the suppliers have to incur after the delivery in transportation for getting those pallets back or charging more to their customers for those pallets which in turn decreases the operating margin and pallet pooling takes care of that. For instance, in May 2023, CHEP, a pallet pooling company announced that its new algorithm increases pallet recoveries in Europe by 500,000 units per year.
• Some of the major players operating in the market include Brambles Limited; Buckhorn; CABKA Group; Contraload NV; Demes Logistics GmbH & Co. KG; Eur-Pool System International; Faber Halbertsma Groep B.V., iGPS Logistics LLC; Litc-International; Loscam Australia Pty. Ltd.; and PPS Midlands Limited