Pallets India and MEA Market Intelligence

*This report was last updated in Q4 2018. Please click on request customization if you are looking for an updated version of this report

Report Coverage

  • Global Wooden Pallet Market
  • Global Plastic Pallet Market
  • Stringer Pallets vs. Block Pallets
  • Pooling Supply Market Trends
  • Key Pallet Innovations
  • Recent M&As and Capacity Expansions

Production Size

Production Size North America

1.45 Bn Units

Production Size Europe

1 Bn Units

Production Size Asia Pacific (APAC)

1.75 Bn Units

Table of contents

  1. Executive Summary
  1. Global Pallets Market
  1. Regional Pallets Market
  1. Trends and Innovations
  1. Supplier Analysis
  1. Overall Cost Breakdown
  1. Industry Best Practices

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Reginal Market outlook on Pallets in India and MEA

The MEA and APAC, which are majorly dependent on imports for pallet production, have reduced their import quantities over the past few quarters. This is expected to cause gradual price increase for pallets in the long term.

The pallet market is expected to be dominated by APAC, which currently holds 34% market share and expected to reach 40% market share by 2021. Growth is attributed to large demand from F&B, pharmaceutical segments.


MEA Pallet Market Outlook

The logistic sector in the UAE is expected to expand at 4–5% over the next five years, thereby driving pallet demand in the Middle East. However, in North Africa, growth is expected to remain constrained, owing to low manufacturing activity.

The MEA contributes to 10% of the global pallets market, with UAE and South Africa being the major demand regions, due to efficient trade traffic and logistical capability.

Supply in MEA has been affected by the global decline of lumber supplies. Imports from Australia and Eastern Europe have increased to cater to growing demand in MEA.Another major factor leading to constrained supply is the manual production process. This has also led to poor quality pallets, thereby leading to low prices

Several investments in transport sectors are being made to make Saudi Arabia the regional logistics hub. Therefore, buyers can look for opportunities to make Saudi Arabia their sourcing hub for the Middle East by engaging with poolers, such as MECS Group.

South Africa is the highest ranked African country in the Logistics index, making it one of the key pallet demand regions in Africa. However, the demand is expected to be constrained in the upcoming years, owing to slowdown of economic growth.


APAC Pallet Market Outlook

Lumber supply levels in Asia are expected to be boosted by the increased imports from Canada and Australia. This is expected to lower prices in the next few quarters.

The growing sentiment to shift to pallet pooling by buyers in APAC is expected to marginally constrain pallet growth in the near term in APAC. China is expected to be the key growth region in APAC, growing at 11–12% until 2021.

The APAC market demand for pallets is expected to be led by China (growing at 11–12% until 2021) and India (growing at 13–14% until 2021), due to surge in demand for pallet pools in the next 5–7 years.With only 20–30% of retail goods being shipped on pallets, currently, it is expected that the market will witness a dramatic change in the pallet pooling attains popularity


India Pallet Supply Base Outlook

Apart from pallet manufacturers, buyers can consider engaging with LEAP India, which has been involved in several investments over the past year to expand pallet count from 1 million to 4.5 million and increasing the market share to 50% in India.

Manual pallet production process in India leads to low production capacities. However, pallet supply base is highly fragmented in India, thereby providing buyers with better opportunities for diversifying volume.


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