Study: US demand for pallets to reach 1.5 billion units in 2012
22/07/2008 - 13:20
US demand for pallets is forecast to advance more than one percent annually through 2012 to 1.5 billion pallets valued at $16.8 billion. Pallets made from wood - primarily lumber - will continue to account for the largest share of the US pallet market, while plastic pallets will experience the most rapid gains in demand. These and other trends are presented in Pallets, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm
Wood pallets are forecast to account for almost 80 percent of demand in 2012.
Demand for wood pallets is projected to increase at a rate just below that of the market average, however. Demand increases will be restrained by the growth of pallet refurbishing services. These services prolong the lifespans of existing pallets, reducing demand for new pallets. Environmental concerns about the waste generated by damaged and discarded pallets will also drive continued use of pallet refurbishing, as users seek to reduce the environmental impact of pallet consumption by trying to reuse and refit pallets, rather than disposing of them at the earliest opportunity.
Demand for plastic pallets is projected to advance 2.4 percent per year to over 130 million pallets in 2012. Plastic pallets are easy to clean, and meet US and international phytosanitary requirements for shipping, making them ideal for product shippers with neither the time nor resources to continually sterilize pallets. Plastic pallets can last a long time without requiring time-consuming repairs, and can be easily recycled once they have reached the end of their product lifespan. This durability will restrain demand growth for plastic pallets, as they do not need to be replaced as often as pallets made from such materials as lumber. Gains in plastic pallet demand will also be tempered by their high cost relative to lumber pallets.
Manufacturers will continue to account for the largest share of demand for new pallets, totaling 78 percent of the market in 2012. Providers of warehousing and other storage services will post two percent annual gains in pallet demand through 2012. These companies, which manage pallets and coordinate the shipping and handling of materials from original manufacturer to end user, will need new pallets to expand their operations and more effectively serve existing customers. These firms serve as third-party storage and shipping agents for manufactured goods; thus they rely on the prompt and efficient delivery of pallets to maximize their profits, and will need large stocks of them to meet demand for their services.
