Enjoy complimentary customisation on priority with our Enterprise License!
The US pallet market is estimated to grow by 222.89 million units at a CAGR of 2.86% between 2022 and 2027. The growth of the market depends on several factors, including high applications of pallets in shipping and load-handling sectors, high penetration of the e-commerce industry in the US, and rising demand for plastic pallets.
To learn more about this report, Download Report Sample
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The high applications of pallets in shipping and load-handling sectors are notably driving market growth. These are a common type of goods or material or load-handling equipment that provide the required support during their transportation. As an integral part of supply chain management in various end-user industries, pallets are used for different tasks involving the storage, loading, and unloading of goods. Some of the common end-user industries include industrial goods and services, automotive, food processing, electrical and electronics, and others. The growing demand for material handling and, in turn, shipping and load-handling in these industries will drive the growth of the market in focus during the forecast period.
Moreover, the US, which is a highly developed economy, has a high per capita household income that will boost the demand for and consumption of various consumer products, including packaged products. The high disposable income will encourage consumers to try premium food and beverage products. The changing pattern of consumer preferences and rising demand from the processed food industry and other industries, such as industrial goods, are expected to drive the demand which in turn, will drive the market growth and trendst during the forecast period.
The adoption of reusable pallets is one of the emerging market trends. Reusable pallets are manufactured using durable materials and can be used more than once. They do not warp, shrink, or splinter easily and can handle the harshest of climatic conditions. Owing to this, reusable lumber products are used by companies while shipping fragile products. They are also designed to withstand rough handling, which is typical in a logistics system. The logistics industry has been increasingly using reusable pallets to cut costs and avoid wastage.
Traditional pallets require a large amount of storage space, however, reusable pallets take up less space as the logistics company requires fewer pallets. The use of reusable products thus helps in saving space in warehouses. Additionally, manufacturers and logistics companies can reduce their overall environmental impact by using reusable pallets. Hence, such factors will help in fueling the market growth during the forecast period.
Environmental concerns related to the use of pallets are major challenges impeding market growth. Environmental concerns over the use of plastic pallets constitute a significant challenge to the market. Plastic pallets are more durable, but their production processes are highly energy-intensive and contribute to greenhouse gas emissions. Pallets made of plastic cannot be repaired. As a result, only new plastic pallets can be used to repair damaged pallets. Plastic pallet recycling is an energy-intensive process that may raise the carbon footprint; on the other hand, disposing of damaged plastic products increases the volume of non-recyclable solid waste.
Heavy machinery in the supply chain or during transit can damage wooden pallets. A wooden pallet may be substantially functional even after it is broken. Splinters from damaged wooden pallets may still shred or pierce product packaging due to their rough surfaces and edges. When a wooden pallet is destroyed, the sawdust, splinters, and wood fragments left behind might contaminate food products with foreign objects. Another significant issue associated with the use of wooden products is growing environmental concerns over deforestation, rising carbon footprint, and wastage of scarce natural resources. Thus, the aforementioned factors related to the use of pallets will negatively impact the growth of the market in focus during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth and forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
CABKA Group GmbH - The company offers products such as grids, fences, inflow plates, temporary fence bases, material handling, big containers, slides, plastic shells, and other related products.
The market research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the wood segment will be significant during the forecast period. Wooden pallets are the most widely used type of pallet owing to their higher price performance, reliability, and easy availability. Wood is stiffer and more affordable and can be easily fabricated into different sizes as needed. Composite wooden product available in the market are competitively priced and are available in different shapes, which can make the transportation and storage of goods easier.
Get a glance at the market contribution of various segments Request a PDF Sample
The wood segment was valued at 1,234.86 million units in 2017 and continued to grow until 2021. Wooden pallets are being increasingly adopted by production units, distribution centers, and manufacturing units because of their cost-effectiveness. Recycled wooden products tend to be drier than new wooden pallets, which helps to strengthen the pallets, thus making them almost as durable as new products. Wooden pallets are strong, highly customizable, and available in a variety of sizes and strengths. They can be used for carrying goods weighing 1,500-3,000 pounds (lbs). In addition, wooden pallets can be repaired when they get damaged. Most of the demand for wooden pallets comes from the food and beverage, pharmaceutical, chemical, and consumer goods industries. Wooden products are widely used to pack, transport, and deliver food products such as fruits and vegetables, fish and seafood, oil, cheese, and dairy and bakery products. Many companies of wooden pallets have also started offering innovative products, such as half, quarter, and stackable pallets. This, in turn, is likely to fuel the market growth during the forecast period.
The market thrives on efficiency, catering to diverse industries like manufacturing, agriculture, and logistics. Platforms facilitate the transition of goods, utilizing material handling equipment such as forklifts and pallet jacks for stacking and storage optimization. With a focus on sustainability, environmentally friendly pallets made from recyclable materials meet government regulations and industry standards. Integration of automation and Artificial intelligence (AI) streamlines warehousing operations, meeting optimal efficiency amidst a reliance on online shopping. From order fulfillment processes to deliveries, the organized system optimizes warehouse space while meeting customer expectations. Across industrial sectors, including automotive, pharmaceuticals, and Food and beverage industry (F&B), pallets play a pivotal role in enhancing productivity and minimizing the risk of product damage.
The market research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Pallet Market In US Scope |
|
Market Report Coverage |
Details |
Page number |
136 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.86% |
Market growth 2023-2027 |
222.89 mn units |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.31 |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Arrington Lumber and Pallet Co., Brambles Ltd., CABKA Group GmbH, Edwards Wood Products, General Pallets Inc., Greystone Logistics Inc., iGPS Logistics LLC, Indoff Inc., Kamps Pallets Inc., Larson Packaging Co., Litco International Inc., Menasha Corp., Millwood Inc., Myers Industries Inc., Nelson Co., PECO Pallet, Rehrig Pacific Co., Sonoco Products Co., UFP Industries Inc., and Universal Package |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market growth analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.