Wood and Plastic - Materials of Choice
Wood and plastic will remain the material of choice for manufacturing pallet pooling. Pallet pooling derived from wood continues to capture a higher demand share as compared to other materials such as steel and composites.
Further, the sales of wood pallet pooling will surpass the US$ 6 Bn mark during the latter half of the forecast period. Preferred for its durability and cost efficiency, disposable plastic pallet pooling is likely to witness notable upsurge in its revenue share in the global pallet pooling market in the near future.
Developed Regions Capture over 60% Share
By capturing a collective share of over 60% of overall consumption, North America and Europe continue to lead the pack in the global pallet pooling market. The growth potential in these developed regions is primarily attributable to the burgeoning digital commerce ecosystem and surging industrial output.
The U.S. and France lead the developed regional pallet pooling markets of North America and Europe, respectively. On similar grounds, market players are also tapping white spaces in Asia, particularly Japan and ASEAN countries, where the pallet pooling market will register revenue of around US$ 2 Bn by 2029 end.
RFID Tags for Improved Supply Chain Management
Market players are integrating radio frequency identification (RFID) tags with plastic pallets for efficient supply chain monitoring as well as proper management of pallet transportation and supply. With information stored in a microchip and transmitted via a transponder, RFID tags ensure traceability throughout the entire supply chain, right from the distribution or rental service centers to the end-use customers. Intelligent Global Pooling Systems (iGPS) Logistics LLC, for instance, was the first pallet company to incorporate RFID tags into its pallets to simplify its supply chain management.
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How Growth will Unfold
As warehouses are an integral aspect in the fast-moving consumer goods (FMCG) industry, the adoption of pallet pooling in this end-use industry will remain prominent over the next decade. In 2019, pallet pooling worth US$ 2.2 Bn was consumed by the FMCG industry.
Players in the pallet pooling are also dedicating a significant slice of their investments in the food & beverage and pharmaceutical sectors. The usage of pallet pooling in both these industries is expected to capture nearly half of overall demand.
FREQUENTLY ASKED QUESTIONS ABOUT PALLET POOLING MARKET
Which market dynamics will affect the growth of the pallet pooling market?
Pallet producers are relying on automated loading/unloading of pallets to increase the efficiency of pallet pooling. Tracking chips (RFID) are being embedded in pallets as most end users need their products to be tracked. With growing government regulations for the development of a circular economy, increase in the recovery, reuse, and recycling of pallets is a positive trend. All this factors are responsible for driving the growth of the global pallet pooling market.
Which application area holds potential growth opportunities for market players?
While the FMCG sector continues to influence growth strategies, as it holds significant share in the global pallet pooling market, the demand for hygienic pallets is growing. Hygiene pellets are experiencing significant momentum in pharmaceutical and food & beverage industries. The food & beverage industry is projected to lead market growth, owing to increasing packaged food consumption in North America and Europe.
Which region will lead the global sales of pallet pooling?
North America remains at the forefront of the global pallet pooling market, owing to increasing number of warehouse operators who prefer pallet pooling for the transportation of materials as well as packaged food, which is highly consumed in the region. North America, followed by Europe, is anticipated to have prominent share in the pallet pooling market, owing to the increasing number of industrial activities.
What is the degree of competition in the pallet pooling market?
The global pallet pooling market has a limited number of market participants, and thus, is highly consolidated. In the current scenario, company leaders such as CHEP (subsidiary of Brambles), Faber Halbertsma Group, and Euro Pool Group hold a prominent share of the total revenue in the pallet pooling market space.
PALLET POOLING MARKET TAXONOMY
- Other Metals
- Food & Beverages
- North America
- Latin America
- South Asia
- East Asia
- Middle East & Africa