PUBLISHER: Bonafide Research & Marketing Pvt. Ltd. | PRODUCT CODE: 1237875
PUBLISHER: Bonafide Research & Marketing Pvt. Ltd. | PRODUCT CODE: 1237875
Pallets are horizontal, portable platforms that are attached to various superstructures and a bottom deck. They are manufactured with materials like wood, fiberboard, and plastic. Pallets facilitate transportation and shipping of goods, utilising material handling equipment like cranes, front loaders, conveyors, and lift trucks. They are considered tertiary packaging that offers efficient storage and handling by acting as a stable base for materials and products. Nowadays, pallets are available in various sizes and configurations, which can be broadly categorised into stringer and block pallets. In Europe, the most commonly used pallet size is the 1200x800mm pallet, also known as the "Euro pallet." This pallet size is standardised according to European Pallet Association (EPAL) standards, which ensures consistency in pallet size and construction across Europe. The Euro pallet is made of either hardwood or softwood and can hold up to 2,000 kilograms. The Euro pallet's popularity is due to several factors, including its standardization, compatibility with European material handling equipment, and ease of international transportation. Many European companies prefer to use the Euro pallet because it can be easily transported between countries without having to worry about size or compatibility issues. Other types of pallets used in Europe include the UK standard pallet (1200x1000mm), which is used in the United Kingdom and Ireland, as well as plastic and metal pallets, which are becoming more popular due to their durability and reusability. However, the Euro pallet remains the most commonly used pallet in Europe.
According to the research report, "Europe Pallet Market Outlook, 2028," published by Bonafide Research, the market is projected to reach USD 25.31 billion by 2028. In Europe, pallets are used for the transportation and storage of goods across various industries, such as retail, food and beverage, pharmaceuticals, and logistics. In Europe, wooden pallets are the most commonly used type of pallet, followed by plastic and metal pallets. The use of sustainable and eco-friendly pallets, such as recycled plastic and wood pallets, is also growing in the region due to increasing environmental concerns. The European pallet market is highly fragmented, with many small and large players operating in the market. Some of the key players in the market include Brambles Limited, Euro Pool System International BV, Falkenhahn AG, PGS Group, and Schoeller Allibert Services B.V. These players are focusing on innovation, research and development, and strategic partnerships to expand their market share and enhance their product offerings.
Based on the countries, the European pallet market is segmented into six major countries, including Germany, the UK, France, Spain, Italy, and Russia. Among them, Germany is leading the market with more than 25% market share by 2028. The European countries are extensively focusing on reuse, recycling, and degradable packaging; besides, the European Union (EU) released its new "Circular Economy Action Plan" on March 11, 2020, under which they set a target of having all the EU market use reusable and recyclable materials by 2030 in an economically viable manner. Such favourable initiatives are further expected to increase the penetration of reusable plastic pallets in the region. The war in Ukraine has claimed a new collateral victim in Europe: the market for wooden pallets, crucial in the packaging, handling, and storage of goods. According to the European Pallet Association (EPAL), more than 600 million of its pallets and 20 million of its box pallets are in circulation. The EPAL and the railroad association UIC have reached a fundamental agreement on mutual pallet recognition. Both organisations will be working in the near future on an agreement that will facilitate the unrestricted exchange of both pallets between the users of a common pallet pool.
The European pallet market is primarily driven by the increasing global standards of good transportation operations. Apart from this, there has been a huge demand for plastic pallets from the chemical, dairy, wine and spirits, steel, and electrical industries. This can be attributed to their lightweight, durable, and pocket-friendly nature. Furthermore, the significant development in the logistics and transportation sectors has also increased the demand for pallets. They are extensively used for improved and safe transportation of goods and materials, which also offers optimum protection and delivery of the product. Europe has one of the largest pallet pools in the world. Pallets with goods are delivered, and an equal number of empty pallets are collected back at that time. However, exchanging pallets is not always a smooth process, as all the pallets need to be picked up and returned after unloading palletized goods at one location. To avoid receiving fewer pallets back, a mobile application named the Pallet Check Express has been developed. This application helps optimise pallet exchange by documenting details such as time, date, exchange location, and the number of pallets. Such techniques are expected to make the pallet exchange process simple and time- and money-saving, which will propel market growth in the forecasted period. Food and beverage will lead the market in terms of end user in 2022.
The pallet market has grown exponentially with the rise in global trade and shipping. As the world becomes even more closely knit, the pallet market is expected to expand even further. Due to the presence of various small and major producers who compete against one another in terms of price and quality, the pallet market is fragmented. Corrugated pallets are becoming more popular as a sustainable packaging option as a result of the development of green consumption. Established businesses have been developing the strength of corrugated pallets for a variety of purposes, and the pallets have been gaining acceptance. Based on the material type, wood pallets are dominating the overall market in 2022 and are expected to continue their dominance by the end of the forecast period. The majority of pallets used in Europe are made from wood, mainly because it is an easily available material. Plus, it is cheaper and easier to repair, recycle, or reuse compared to alternatives such as plastic and steel.
For instance, Euro pallets are pallets that are predominantly used in Europe. They date back to the 1960s, when European railway companies collaborated to develop a standard pallet to ease cargo loading. The European Pallet Association (EPAL) was founded in 1991 to oversee standardisation and push for quality control. It follows a strict set of specifications. These include pallet sizes, design, type, number of nails per pallet, and timber used. EPAL standardisation has enabled pallet pooling, simplifying the freighting of goods while keeping shipping costs affordable. Standardization also enables pallet repairs. Makers of pallets that meet EPAL requirements are authorised to use their logo. The logo eases identification when making logistical, loading, and repair decisions. Furthermore, based on pallet types, block pallets are expected to dominate the market during the forecast period, whereas non-rental applications will lead the market in 2022.
Pallet Earth is changing the way the region moves, challenging the world's traditional supply chain infrastructure and the use of wooden pallets with its new generation of sustainable and trackable pallets. In the wake of the pandemic, fruit and vegetable producers are facing new challenges, such as sharp increases in fuel costs, sea freight rates, and a range of sustainability issues. It has never been more important to harness technology to help improve efficiencies across the supply chain. The pallet design supports both sustainability and cost benefits across the supply chain. The pallets' innovative nesting allows for an economical return to the point of origin, reduces the cost of return legs to one-quarter of that of polled pallets, and reduces CO2 emissions by 8 kg per pallet.The unique interlocking feature enables increased volumes to be moved-safely moving 50 pallets at a time compared to 13 stacked wooden pallets. Goods are also protected with an internal steel frame that provides strength and stability to protect goods during transit, and air holes help keep fresh produce fresh.
In Europe, the regulations and licencing requirements for pallets can vary depending on the country and the specific use case. For instance, the International Standards for Phytosanitary Measures No. 15 (ISPM 15) regulation applies to wood packaging materials used in international trade. Under ISPM 15, wood pallets that are used for international shipments must be heat-treated or fumigated to prevent the spread of pests and diseases. The European Pallet Association (EPAL) is an organisation that sets standards for the manufacture, repair, and inspection of wooden pallets in Europe. Companies that use EPAL pallets must follow specific guidelines for quality control and repair to ensure that the pallets meet the organization's standards. Further, pallets used in the food and beverage industry must meet strict food safety regulations to prevent contamination and ensure the safety of the products being transported. These regulations may include guidelines for materials, cleaning procedures, and handling practices. Some countries in Europe have regulations governing the use of certain materials for pallets, particularly with regards to their environmental impact. For example, there may be restrictions on the use of certain chemicals or treatments for pallets. On the other hand, certain industries may have specific regulations governing the use of pallets. For example, the pharmaceutical industry may require pallets to be made from certain materials to prevent contamination, while the automotive industry may have requirements for pallets used in the transport of heavy or oversized parts.
Major Companies present in the market:
DS Smith, Smurfit Kappa group, Conitex Sonoco, Cabka Group GmbH, Menasha Corporation, Falkenhahn AG, UFP Industries, Inc, Schoeller Allibert Services B.V., Brambles Limited, Craemer Holding GmbH, KraftPal Technologies Ltd., Tranpak Deliver Innovation, Elsons International
Considered in this report
Aspects covered in this report
Countries covered in the report:
By Material Type:
By End Use:
By Application Type:
By Structural Design Type
The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Pallet industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.
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