Paper Pallet Market Is Estimated To Witness High Growth Owing To Rising Demand For Sustainable Packaging

The paper pallets market is expected to be at USD 1.21 billion by 2024 and should show a CAGR of 4.5% during the forecast period 2024-2031, according to key data in a new report published by Coherent Market Insights’ Paper Pallets Market’ Paper is driven primarily by bark growth.

Demand for sustainable and eco-friendly packaging solutions from various end-use sectors such as food and beverage, pharmaceuticals, chemicals and others. Paper pallets have many advantages over traditional wooden pallets, such as moisture resistance, durability, and recyclability. We also help companies Achieve sustainability goals Not to mention the packaging is reusable and recyclable. In addition, strict government regulations regarding the use of plastic and wood have fueled an increase in demand for paper pallets in recent years.

Key Market Trends: Corrugated pallets are gaining more popularity in the market due to their higher strength and weight bearing capacity. A corrugated cardboard pallet can effectively carry a load of 2,000 pounds and protects against moisture and contamination. The corrugated design also allows for excellent ventilation during transport.

Paper Pallet Market Opportunities: Corrugated paper pallets are gaining importance for transportation and storage of lightweight and low-density products. They provide advantages over wood pallets such as lightweight, low cost of transportation, moisture resistance and recyclability. Their increasing adoption from industries such as food and beverages, pharmaceuticals and consumer goods is creating growth opportunities for paper pallet manufacturers.

Reusable paper pallets are an emerging opportunity as they provide sustainability benefits over single-use pallets. Being lightweight, reusable paper pallets reduce freight costs for companies. Manufacturers are introducing enhanced designs that allow paper pallets to withstand multiple product life cycles through repairs and replacement of damaged components. With environmental regulations promoting reusable packaging, demand for reusable paper pallets is expected to rise in the coming years.

Key Market Takeaways: The global paper pallet market size was valued at USD 1.21 Billion in 2024 and is anticipated to witness a CAGR of 4.5% during the forecast period, owing to growth in e-commerce and durables industries.

On the basis of type, corrugated segment is expected to hold a dominant position, accounting for over 50% market share, due to its lightweight and protection from moisture.

By capacity, below 1,000 kg segment holds the largest share currently however, 1,000-1,500 kg segment is expected to witness fastest growth during the forecast period due growing demand from FMCG vertical.

On the basis of region, North America is expected to hold a dominant position over the forecast period, owing to strong presence of key players and packaging companies in the US.

Competitor Insights:Key players operating in the paper pallet market include Ecolution Inc., Cascade Inc., OX-EURO-TRANS-PAL, Conitex Sonoco, Greenpack industries, CTP Trans Paleta, Rogge Multimodal Group amongst others. The market has presence of both global and local manufacturers with intense competition among all players.

Recent Developments: In June 2023, Smurfit Kappa – one of the world’s largest paper pallet suppliers – announced plans to construct two new paper pallet plants in the United States and Germany. Meanwhile, other leaders like Polar Pallet and GL Packaging have carried out capacity expansions and facility upgrades. Analyst’s project that paper pallet production capacity worldwide will increase by 15-20% through 2024 with these ongoing manufacturing investments. The additional capacity will help suppliers better serve multinational customers and capture opportunities in emerging markets. More information in full report.