The global corrugated pallets market size was valued at USD 1,380 million in 2021 and is estimated to reach an expected value of USD 2,110 million by 2030, at a CAGR of 4.8% during the forecast period (2022 - 2030).
Corrugated pallets (paper pallets) are pallets made of corrugated material, paper board sheets, and other paper materials except for wood. They are manufactured through various methods, including corrugated top decks & bottom decks, internal support cells, support blocks (manufactured by compressed corrugated material), honeycomb support blocks, corrugated runners, and built-up runners. The growth of the global food and beverage industry is predicted to increase demand for corrugated pallets to be employed in the food supply chain in numerous nations.
|Market Size||USD 2,110 million by 2030|
|Fastest Growing Market||Europe|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
Emerging markets like China, India, Argentina, and Brazil are propelling the food and beverage industry's overall expansion because of their rapid population growth and rising living standards. Additionally, the growth of the global food and beverage industry is predicted to increase demand for corrugated pallets to be employed in the food supply chain in numerous nations. Furthermore, according to estimates from the Food and Agriculture Organization of the United Nations, nearly one-third of the food produced for human consumption is wasted during international transit and handling, adding to the food shortage. Thus, corrugated pallets serve a significant role in food preservation because they strengthen the resistance to moisture and humidity, reducing mold formation and preventing other hygienic difficulties. This helps reduce wastage and fulfill the growing population's food demand.
With many countries in developing countries still being largely rural, economic growth in the coming future is expected to foster ongoing urbanization. An upsurge in population in these countries is expected to boost the demand for housing and commercial infrastructure. The Asian Development Bank estimates that between 2010 and 2020, Asia-Pacific would spend USD 8–9 trillion on infrastructure development to maintain its economy, which fuels the growth of the building and construction sector. Furthermore, by 2025, emerging markets are expected to account for 60% of global construction activity, according to Oxford Economics and Global Construction Perspectives. In addition, the rise in new housing projects in emerging economies is expected to offer lucrative opportunities for the construction sector. For instance, by 2025, China and India will need to build almost 270 million new dwellings to accommodate their expanding populations. These reasons highlight the necessity for environmentally friendly industrial packaging, such as corrugated pallets, which shield building supplies and machinery from atmospheric, magnetic, and electrostatic forces while in storage or transit. Thus, it is projected that expanding the corrugated pallets market will be driven by increased construction activities such as housing, commercial, and infrastructure projects in emerging nations.
Due to the enforcement of environmental policies, the corrugated pallets market is anticipated to witness a downturn. Bans and regulatory impositions are introduced on corrugated pallets that emit highly toxic solvents and volatile organic compounds (VOCs), which can be hazardous to health, causing nausea, vomiting, nose bleeding, fatigue, and dizziness. Thus, all these factors collectively are anticipated to hamper the market growth during the forecast period.
E-commerce retail channels are gaining popularity among households. The companies implementing non-recyclable materials in their packaging are witnessing strong criticism and public debate. In addition, plastic usage in packaging is perceived as the least sustainable form of packaging and always faces legal hurdles from environmental protection agencies and government authorities. To overcome such public debate, governments of various countries are implementing more stringent policies. Recently, the European Union enacted a policy mandating that by 2030, all plastics used on the market must be fully recyclable. Brands, merchants, and food processing industries are responding independently to this severe scenario by establishing their goals to replace the least sustainable packaging materials with fully recyclable materials. For example, shops in Iceland pledge to eliminate plastic packaging from their private label commodities by 2023. 100% recyclable corrugated packaging is one of the most effective natural alternatives to plastic packaging material. According to Eurostat, corrugated packaging has the highest recycling rate among all packaging materials. Market leaders in producing corrugated packaging products are continuously working to discover areas where corrugated materials might replace plastic and other less sustainable materials. All these factors collectively are anticipated to provide remunerative opportunities for market expansion.
Based on region, the global market share is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.
Asia Pacific accounted for the largest market share and is estimated to grow at a CAGR of 5.6% during the forecast period. Corrugated pallets protect the goods from atmospheric, magnetic, electrostatic, vibration, or shock damage. Asia-Pacific is anticipated to possess high growth potential, owing to increased developments related to corrugated pallets in emerging economies and rapid industrialization. An increase in the popularity of internet shopping in developing countries is expected to fuel the demand for corrugated pallets for the shipping of relatively small items. In addition, the rise in purchasing power of consumers, majorly in India, South Korea, and Japan, is expected to accelerate the market growth. Moreover, the surge in need for lightweight, flexible packaging among end users minimizes carbon footprints; improves logistics, convenience, & presentation; provides product protection, prevents contamination; and is cost-efficient. All such factors collectively drive the growth of the Asia-Pacific corrugated pallets market.
North America is the second largest region. It is estimated to reach an expected value of USD 400 million by 2030, at a CAGR of 3.9%. North America corrugated pallet markets include significant countries such as the U.S. and Canada. These countries have a large number of manufacturing facilities. Hence, the use of corrugated pallets in these countries has increased considerably, which boosts the market's growth in the region. The development of the global e-commerce industry, the need for inflatable packaging, and active participation by third-party logistic companies are the major factors driving the growth and development of the packaging and protective packaging market in North America. In September 2016, Pregis Corporation acquired Easypack Limited, a paper-based protective packaging company manufacturer, to expand its existing product portfolio and include a complete line of cushioning, block/brace, and paper void fill solutions in its product range. Prominent players in the market have heavily invested in R&D to enhance their technological base, diversify their product offerings, and expand their geographical outreach. Owing to the expansion of the product portfolio, the need for corrugated pallets increases parallels, thereby driving the market's growth.
Europe is the third largest region. In Europe, corrugated pallets are employed in multiple applications for corrosion protection, long-term storage of goods, and outdoor storage protection. Europe's corrugated pallets market is growing the global corrugated pallets market significantly, owing to an increase in the number of new entrants and the development of the warehousing industry. In Europe, corrugated pallet solutions are widely used in healthcare, food, beverages, and industrial applications. Numerous market players are adopting different business strategies to develop their business in Europe. For instance, in September 2016, Pregis Corporation acquired Easypack, a paper-based protective packaging company, to diversify its inflatable plastic packaging business. In addition, Europe is expected to witness significant growth in the near future, owing to growth in internet retailing and a rise in manufacturing activities. Moreover, change in lifestyle, eating habits, and retail patterns are expected to provide remunerative growth opportunities to the industry players.
The global corrugated pallets market share is segmented by several layers, end-use, and region.
Based on the number of layers, the global market is segmented into less than 3 layers of corrugated board (standard), 3-5 layers (robust), and more than 5 layers (extra robust for high dynamic and static capabilities). The Less than 3 layers segment accounted for the largest market share and is estimated to grow at a CAGR of 4.3% during the forecast period. Less than 3 layers of corrugated pallets are used for lightweight consumer goods products. These pallets can sustain low loads and are designed for carrying lightweight goods in the food & beverages, and pharmaceutical industries. Less than 3 layers of corrugated pallets are specially designed for lightweight goods. With the increase in trade relationships, goods are being transported to longer distances, and in such cases, goods need proper packaging solutions. The key factors driving the market growth are an increase in the transport of goods and a rise in demand for corrugated pallets from manufacturers & logistic companies. Opportunities lie in producing tough pallets using innovative techniques that can be used for extended periods.
The 3–5 layers segment is the second largest. 3–5 layers of corrugated pallets are designed for medium-weight consumer goods. These pallets can sustain moderate weight and a load of around 1,000 kg. The wall's 3–5 level thickness makes it possible to carry medium-load products. Demand for 3–5 layers of corrugated pallets from manufacturers that can carry a medium load is driving the market growth. Moreover, the rapid rise in imports and exports between various countries, which require superior packaging materials, is expected to boost the corrugated pallets market growth during the forecast period. In addition, corrugated packaging is gaining popularity as export and import packaging material, owing to its lightweight and ease of customization.
Based on end-use, the global market is segmented into electronics, food and beverages, agriculture, chemical and pharma, automotive, and others. The food and beverages segment accounted for the largest market share and is estimated to grow at a CAGR of 6.2% during the forecast period. The food & beverage industry always has its products on wheels being transported from one place to another or in storage in warehouses. In such cases, products require a strong support base for food & beverage storage. Corrugated pallets are used extensively for this purpose. The safety of wood products for direct food contact has long been an issue, as the wooden pallets may get moist over some time. Accumulation of moisture on pallets occurs owing to mishandling of food & beverages. Although cardboard and paper pallets are not as strong as wooden pallets, the latest innovations in corrugated pallets are proving beneficial compared to wooden pallets considering moisture absorption. Furthermore, an increase in the manufacturing of pallets that last long and can be recycled easily is anticipated to offer lucrative opportunities for market expansion.
The electronic segment is the second largest. The electronics industry includes selling goods or merchandise to retail industries, commercial spaces, institutional spaces, professional business use to wholesalers (wholesale businesses), and related subordinated services. In such businesses, corrugated pallets support the crates and racks. The demand for transporting electronic goods is increasing with the growth of the overall population. To support consumers' demand, wholesalers need to fill their stocks of goods. To support the automation system in electronic warehousing and the storage of goods, specially designed corrugated pallets are being used, propelling the market's growth. In addition, the growth of distribution channels is positively influencing the corrugated pallets market. Moreover, increasing sales of electronic products and overall electronics in hypermarkets and supermarkets are critical drivers of the global corrugated pallets market.
The agriculture segment is the third largest. The agricultural industry is growing beyond the domestic business. Moreover, an increase has been witnessed in trading agricultural products on other continents. To transport products far distances, the agricultural industry needs strong support and a carrying system, achieved by corrugated pallets solutions. The increase in demand for corrugated pallets in the agricultural industry is the key factor that boosts the market's growth. Farmers are getting global market exposure, and ease of trade across various countries has increased the demand for corrugated pallets from farmers and agricultural product manufacturers. The rapid increase in population and improvements in living standards have led to the growth of the agricultural industry across the globe, thereby boosting the demand for industrial packaging to distribute agricultural products across countries.