World pallet market growing at 4.9% CAGR to 2020 driven by wooden pallets

According to the 2016 global pallet market report by ReportsnReports, a key growth driver is the increase in manufacturing output as revival of the manufacturing sector and projected economic expansion worldwide will boost demand in the materials transport segment.

The MAPI (Manufacturers Alliance for Productivity and Innovation) Foundation anticipates manufacturing production to outpace GDP during 2015-2016. The output in the manufacturing sector has increased over the last three years after a fall in 2008-2009. The manufacturing production will grow at 3.6% in 2016 and 2017. The uptick in manufacturing and resultant need to transport materials, including exports will drive the demand for pallets.

The analysts forecast global pallet market to grow at a CAGR of 4.90% during the period 2016-2020. The global pallet market analyst says one trend which will propel market growth is vertical integration by companies. The demand for lumber used for manufacturing pallets is high in the construction and furniture industries. Sawmills are unable to meet the growing demand. As a result of the shortage of lumber in the market, pallet manufacturers find it difficult to complete their orders. Therefore, the supply of raw materials to pallet manufacturers has been adversely affected. Pallet manufacturers such as Arrington Lumber and Pallet and Associated Pallet are vertically integrating and investing in logging and sawmills. This enables them to offer high-quality pallets at an economical price.

The recent increase in manufacturing output is the primary driving force behind the growth in pallet market. The growth in manufacturing sector and the resultant need to transport materials, including exports, will propel the demand for pallets during the forecast period. The Americas is expected to dominate the global pallet market in 2020 by accounting for a market share of almost 45%. Growth in the manufacturing sector, a rebound in the housing and construction sectors, and an increase in industrial output and exports are some of the factors that will contribute to the growth of the pallet market in the Americas during the forecast period.

The wooden pallets segment accounted for an estimated 91% share of the market in 2015 to become the major contributor in the global pallet market. Wood pallets are strong, durable, inexpensive, highly customizable, and are available in a variety of sizes and strengths. This segment of the market is thriving as the majority of the consumers prefer wood pallets owing to their versatile and cost-effective nature. The majority share of the demand for wood pallets comes from the food and beverage and consumer goods industries.

The following companies are the key players in the global pallet market: Brambles, LOSCAM, ORBIS, Rehrig Pacific, and Schoeller Allibert. Other prominent vendors in the market are: Buckhorn, CABKA Group, The Corrugated Pallets, Craemer Holding, Euro Pool System International, Faber Halbertsma Group, Falkenhahn, Greystone Logistics, HTR Paletten-Service, INKA Paletten, IPG Intelligent Packaging Group, Jinyuan Group Wuhu Zhongshan Wood Packing, Kamps Pallets, Litco International, Millwood, PalletOne, PECO Pallet, Prioridades Ecológicas, RM2 International, and Tianjin CIMC Logistics Equipment