The Europe corrugated pallets market size witnessed significant growth in the past and is expected to grow at a CAGR of 4.5% during the forecast period (2023-2030).
Corrugated pallets, also known as paper pallets, are not made of wood but are constructed from corrugated materials, paper board sheets, and other paper-based components. They are produced using different manufacturing techniques, including corrugated top and bottom decks, internal support cells, honeycomb support blocks, corrugated runners, compressed corrugated material for support blocks, and built-up runners.
The utilization of corrugated pallets in Europe spans various applications, including corrosion protection, long-term storage, and outdoor storage protection. The European market for corrugated pallets is experiencing notable growth within the global market, driven by the increasing number of new entrants and advancements in the warehousing industry.
In Europe, emerging markets are playing a significant role in the growth of the food and beverage industry. These markets are witnessing population growth and improved living standards, driving the demand for corrugated pallets across different countries in the food supply chain.
Additionally, the Food and Agriculture Organization of the United Nations reports that a substantial amount of food, approximately one-third, is wasted globally during shipping and handling, leading to food shortages. Corrugated pallets are essential for food preservation to tackle this problem and meet the increasing food demand. They provide improved resistance to moisture and humidity, preventing mold growth and addressing hygienic concerns, thus reducing food wastage.
In Europe, the corrugated pallets market is projected to face a downturn due to the implementation of environmental regulations. Restrictions and regulatory actions are being enforced on corrugated pallets that emit toxic solvents and volatile organic compounds (VOCs), which can adversely affect health, including symptoms like nausea, vomiting, nosebleeds, fatigue, and dizziness. Consequently, these factors will hinder the market's growth during the predicted period.
Households are increasingly favoring e-commerce retail channels. Companies that employ non-recyclable materials in their packaging are facing significant backlash and public scrutiny. Plastic in packaging is widely recognized as the least environmentally friendly option and often encounters legal obstacles from government authorities and environmental protection agencies. Governments in various countries are implementing more stringent policies to tackle these concerns. Corrugated packaging has emerged as a viable natural substitute for plastic packaging materials, given its 100% recyclable nature.
The Europe corrugated pallets market is segmented into several layers and applications.
The number of layers is further segmented into less than three years, 3-5 layers, and more than five layers.
Less than three layers dominated the market and are expected to register a CAGR of 4.0% over the forecast period.
It is further segmented by application into electronics, food and beverages, agriculture, chemical and pharma, automotive, and others.
Food and Beverages dominated the market and are expected to register a CAGR of 5.7% over the forecast period.
The Europe corrugated pallets market is segmented by country: Germany, France, The UK, Italy, Spain, Rest of Europe. The Rest of Europe dominated the market with a CAGR of 3.9% during the forecast period.
The Europe corrugated pallets market demonstrates significant growth prospects within the region. Factors such as the expansion of the manufacturing sector, growing emphasis on sustainable packaging solutions, and increasing adoption of e-commerce platforms contribute to the market's development. Additionally, stringent environmental regulations and initiatives promoting recycling and waste reduction drive the demand for corrugated pallets. Europe's strong focus on sustainability and eco-friendly practices further boosts the market, positioning it for continued growth and innovation in the corrugated pallets industry.
In Europe, corrugated pallets find wide-ranging applications in sectors such as healthcare, food, beverages, and industrial settings. Market players in the region are implementing diverse business strategies to expand their presence. For example, Pregis Corporation acquired Easy Pack, a company specializing in paper-based protective packaging, in September 2016, aiming to enhance its inflatable plastic packaging business. Europe is anticipated to witness substantial growth in the coming years, fueled by the expansion of internet retailing and increased manufacturing activities. Furthermore, changes in lifestyle, eating habits, and retail patterns are expected to create favorable opportunities for industry players.
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