2.4 Bn Units
0.5-0.6 Bn Units
Category Intelligence on Pallet Pooling Europe covers the following
How is the market outlook for pallet pooling in Europe?
Pallet Buying versus Pallet Pooling
Though pallet demand is expected to steadily grow in the next 3-5 years, raw material (lumber) supply is expected to be constrained thereby causing constrained supply of pallets in Europe
Pallet market is expected to be dominated by APAC which currently holds 34 percent market share and expected to reach 40 percent market share by 2021. Growth is attributed to large demand from F&B, pharmaceutical segments
Global Pallet Market Outlook (2017-2021F)
Wooden pallets are expected to continue dominating pallet market due to their cost effectiveness. However, adoption of plastic pallets can be beneficial in longer run as they offer better life and flexibility to tracking technologies
In spite of the transition by some companies from wooden pallets to plastic pallets, majority of the market will continue to employ wooden pallets due to their low cost and sustainability features
Wooden pallet pooling contributes ~90 percent of the global pallet pooling due to their cost efficiency over plastic pallets. However, demand for washable, hygienic and insect-free pallets may drive demand for plastic pallets in the future.Pooling pallets reduces the pressure of expenditure by eliminating huge payments of pallet procurement making it a cost efficient approach for sourcing pallets. However, adoption is mostly witness in Europe and North America where the preference for pooling is above 70 percent.Global wooden pallet pooling service market is expected to grow at 8-9% primarily driven by rapid industrialization and increasing global trade. Strict cleanliness standards in the pharmaceutical industry is also a major driver for growth of pallet pooling services
North America leads the global consumption owing to strong manufacturing sector and presence of global pallet pooling companies. North America and Europe are expected to remain dominant until 2021.Pooling services in APAC are expected to witness a gradual uptrend in the near term driven by its growing industrialization rate Food and FMCG are expected to be the major end use segments for Pallet Pooling services
European lumber prices have continued to rise over past few months and are expected to rise in coming quarters. Therefore, it would benefit to gradually explore opportunities in plastic pallet adoption which provide better performance
Western Europe contributes to majority of the demand due to concentration of industrial activity. Newer plastic pallets like Rackpal, North American Pallet, Eco Pal are all highly efficient pallet designs aimed to serve markets predominantly catered by wooden pallets
European Wooden Pallet Pooling Growth Prospects
Preference for Block Pallets
Lack of Innovation
Euro wooden pallets are fairly standard product and have very little scope for innovation. This has caused the penetration of Plastic and composite pallets which can be embedded with smart features like tracking capability, lightweight, longer life, etc.
The UK pallet industry is facing challenges with Brexit resulting a decline in demand for new pallets. Germany and Belgium experienced a gradual price decline past year, as a result of lower timber and fuel costs; against a fairly consistent demand.
Automation on the Move
Government Favors Pallet Pooling
Thin Margins among Suppliers