South Africa Corrugated Pallets Market

Market Overview

The South Africa corrugated pallets market size witnessed significant growth in the past and is expected to grow at a CAGR of 3.8% 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.

Highlights

• Less than three layers dominated the market by the number of layers.
• Food and Beverages dominated the market by End-User.

Market Dynamics

South Africa Corrugated Pallets Market Drivers

Significant Development in the Food and Beverage Industry

In South Africa, the growth of the food and beverage industry is being propelled by emerging economies, which are experiencing population growth and improved living standards. This leads to a higher demand for corrugated pallets across various countries in the food supply chain. Additionally, the Food and Agriculture Organization of the United Nations highlights that a substantial amount of global food production, around one-third, is wasted during transportation and handling, resulting in food shortages. Corrugated pallets are essential in addressing this issue and meeting the increasing food demand by effectively preserving food. They offer reliable protection against moisture and humidity, preventing mold growth and addressing hygiene concerns, thus minimizing food waste.

South Africa Corrugated Pallets Market Restraints

Adoption of Strict Regulations for Organic Volatiles

In South Africa, enforcing environmental regulations will decrease the corrugated pallets market. Restrictions and regulatory actions are being introduced to control the emission of toxic solvents and volatile organic compounds (VOCs) from corrugated pallets, which can adversely affect health, including symptoms like nausea, vomiting, nosebleeds, fatigue, and dizziness. Consequently, these factors are predicted to hinder the market’s growth during the specified period.

South Africa Corrugated Pallets Market Opportunities

Greater Attention Paid to Sustainable Packaging Options

In South Africa, households have a growing trend towards an increased preference for e-commerce retail channels. Companies that utilize packaging materials that cannot be recycled are facing significant criticism and public scrutiny. The use of plastic in packaging is widely acknowledged as the least environmentally friendly option and often faces legal challenges from government authorities and environmental protection agencies. However, due to its complete recyclability, corrugated packaging has emerged as a viable and environmentally conscious substitute for plastic packaging materials.

Regional Analysis

The South African corrugated pallets market is witnessing significant growth in recent years. The increasing adoption of corrugated pallets in various industries, such as food and beverage, pharmaceuticals, and logistics, is driving market expansion. Additionally, the rise in e-commerce activities and the need for efficient and sustainable packaging solutions fuel the demand for corrugated pallets in the region. The South African government's focus on implementing environmentally friendly practices and regulations further supports the growth of the corrugated pallets market in the country.

Segmental Analysis

The South African 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 3.3% over the forecast period.

It is further segmented by application into electronics, food, beverages, agriculture, chemical and pharma, automotive, etc.

Food and Beverages dominated the market and are expected to register a CAGR of 5.0% over the forecast period.

Recent Developments

• October 2022- Toppan (TYO: 7911), a global leader in communication, security, packaging, décor materials, and electronic solutions, has developed new polypropylene (PP) mono-material barrier packaging with exceptional heat and water resistance, making it appropriate for retort sterilization.
• April 2022- SDR Ventures is delighted to announce that Kamps, Inc. has purchased L&R Pallet Service, Inc. (“L&R Pallet” or “the Company”) (“Kamps”). SDR served as L&R Pallet’s sole sell-side counsel throughout the sale process.