Paper Pallet Market

Paper Pallet Market Outlook till 2032

When compared with earlier years’ sustainability awareness is propelled to a greater extent which is anticipated to drive demand for economic solutions. Ample government support measures are available to flourish various industries over the forecast period. Unlike conventional metal or wood pallets, paper pallets are made from paperboard or molded paper pulp. Instead of heavy wooden and metal pallets, users are shifting towards efficient and cost-effective pallets which can carry as much weight as the other pallets and are suited for every need.

The paper pallets are easy to dispose of. They are completely clean and have no impurities, which makes them ideal for transporting mainly FMCG goods. Another benefit of the paper pallet is its low prices. In recent years, these pallets have gained massive demand across various sectors due to their reusability and recyclability properties. Moreover, manufacturers are also coming up with numerous technological innovations to increase their consumer base. Apart from this, a rising need for safe and efficient transportation alternatives is expected to raise the demand for pallets in the coming years.

The global paper pallets market is valued at USD 671.28 Million in 2022. The market is further expected to increase and surpass the value of USD 1157.56 Million by end of 2032. The industry is anticipated to grow with a CAGR of 5.6% in the forecast period.

Report Attributes	Details
Market size (2022 A)	USD 671.28 Million
Base Year for Estimation	2022
Forecast duration for this research	2022-2032
Forecasted Market value (2032 F)	USD 1157.56 Million
Global Market Growth rate (2022-2032 E)	CAGR of 5.6%
Key Companies Profiled	DS Smith Smurfit Kappa Group YOJ Pack-Kraft DNA Packaging Systems Eltete Malaysia Sdn Bhd Green Label Packaging Sonoco Honey Shield Emballeurs

What drives demand for the paper pallet industry?

Urbanization is now more than ever-growing at a rapid pace likely to give impulses to the market. A result of enhanced personal incomes and expenses on housing and living are anticipated to drive the market in the forecast years. The manufacturers are focusing on innovations and improvement in the quality of the products.

Pallets are required in the transportation and shipment of goods and materials, the pallets keep the product steady and safe during transport, thus protecting the product from damage. Pallets are made up of various materials such as plastics, wood, metal, and paper pallets. Nowadays, these are widely used in transportation. Unlike metal, wooden and plastic pallets, paper pallets are lightweight and are less expensive as compared to other pallets.

Many companies are investing in paper pallets, as they are a great alternative to plastic and wooden pallets in both, time and cost-effective solutions. Consumers are also increasingly concerned with environment-friendly packaging and prefer such pallets over wooden and plastic pallets.

Ultimately, due to the flexibility in design, size, and shape, combined with many environmental and economic benefits, the market may surge in the near future. Moreover, these pallets provide better cube efficiency and yield in better fill rates in transports and shipments. This factor is expected to drive the global market soon.

Regional Outlook

The regional demand for paper pallets varies across the world. North America has a giant market in the manufacturing of goods in various sectors such as cosmetics, food, medicines, etc. as well as a well-established and large retail industry. The North American paper pallet market is expected to experience growth in the near future.

The Asia-Pacific region also represents opportunities for growth of the market during the forecast period. This is due to the growing retail sector in the countries such as China and India. Increased consumer acceptance of packaged products is also driving the market. According to research, an increase in the demand for shelf-ready packaged products and a surge in the need for safe transportation of products will drive the market of paper pallets.

Segment wise Insights

On the basis of runners, the four-way paper pallets hold a major share of the market. The segment is anticipated to hold a share of more than 50% in this market in the forecast period/ These pallets allow the forklift entry from any side of the pallet which simplifies the distribution and storage of material.

Based on the type of material the cardboard section is dominating this market in terms of volume. While corrugated paper packaging is likely to gain a major share in the future years owing to the safety of packaged material and the demand for cost-effective packaging solutions. The demand for sustainable packaging is anticipated to drive the demand for this segment in the forecast years.

Based on the end-use industry, the healthcare sector is leading in the present scenario owing to the demand for chemically treated pallets to eliminate the risk of infections. This is likely to foster demand for paper pallets in the forecast period.

Competitive landscape

Development in logistics and the ever-increasing e-commerce sector is anticipated to open many lucrative opportunities for paper pallet manufacturers in the forecast period. The key companies are focusing on enhancing their capacity for paper production. These companies are investing in the increment of their portfolio.

• In 2020, KraftPal has taken lifecycle assessment study which intended to compare corrugated boxes with wooden pallets, and found that the cardboard pallets are eco-friendlier in loading. This study is noteworthy as it signifies the probable gain for paper pallets in forecast years to come.
• DS Smith established the fiber pallet with USD 3 Billion investment that intended to enhance the packaging and logistics which is likely to expand the company’s operations into European markets.

Key Segmentation

• On the basis of End-use as :

  • Shipping
  • Medical Industry
  • Food & Beverages Industry
  • Personal Care industry
  • Shipping & Logistics
  • Other

• On the basis of the Material Type as :

  • Corrugated
  • Cardboard
  • Kraft

• On the basis of the Type of Pallet as :

  • Stringent
  • Block
  • Flush
  • Perimeter base

• on basis of Runner Options as :

  • 2-way runner option
  • 4-way runner option

• On the basis of Region :

  • North America
  • Latin America
  • Europe
  • Japan
  • Asia Pacific excluding Japan (APEJ)
  • Middle East & Africa (MEA)