February 24, 2024
India Pallets Market

India Pallets Market is Estimated to Witness Significant Growth Owing to Rising Demand from Logistics Industries.

Pallets are platforms used for transportation and storage of commodities and goods in many industries like retail, logistics and food processing. Convenient packaging and easy handling of goods make pallets an integral part of supply chain logistics. Growing commodities transportation in India due to expanding retail networks, e-commerce growth and increasing exports is driving pallet demand. Pallets enable efficient unitization of loads for shipping, provide structural support and act as platforms for lifting and moving loads using forklifts and pallet jacks. The Indian pallets market is expected to grow rapidly owing to rapid growth of organized retail, e-commerce and third party logistics sectors in the country.

The Global India Pallets Market is estimated to be valued at US$ 1164.88 Mn in 2024 and is expected to exhibit a CAGR of 7.5% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the India Pallets market are UOP-A Honeywell Company, MPR Industries PLC, John Zink Company LLC, Zeeco Europe and Zeeco India, Gardener Denver, and Ro-Flo Compressors. These players are focusing on expanding their manufacturing footprint in India to cater to the growing domestic demand.
The key opportunities in the India pallets market include rise in online shopping and proliferation of organized retail outlets. Rapid growth of e-commerce has increased the demand for effective inventory management and storage solutions. Pallets enable efficient handling of goods during transportation and warehousing.
With growing India-EU bilateral trade and expanding pan-India logistic networks, pallet usage is witnessing significant surge. Manufacturers are investing in R&D to develop reusable and returnable pallet pooling systems to cater to global customers. Standard pallet sizes are helping pallet manufacturers to tap international markets.

Market Drivers

Rising demand from logistics industries is one of the key drivers for the India pallets market Growth. Expanding 3PL networks, growth of domestic freight transportation and investments in warehousing are fueling pallet consumption. As India seeks to improve its rank in the World Bank’s Logistics Performance Index, focus on supply chain automation and deployment of unit load carriers like pallets and containers is anticipated. This will drive significant growth in the Indian pallets industry over the forecast period.

PEST Analysis

Political: Government regulations around transportation safety and standards favor wooden pallets over alternative materials due to their durability and ability to withstand weight loads.

Economic: High GDP growth rate in manufacturing and construction industries is driving demand for pallets to transport raw materials and finished goods.

Social: Reduction in packaging waste is encouraging businesses to reuse wooden pallets multiple times rather than treating them as single-use items.

Technological: Pallet pooling and tracking services using RFID tags help optimize pallet utilization rates and reduce costs for companies.

Geographical concentration of India pallets market

The states of Maharashtra, Gujarat, Tamil Nadu account for over 40% of the total market value due to concentration of manufacturing and industrial activity. Port cities like Mumbai, Chennai and ports near ports near Ahmedabad seefe higher pallet usage due to extensive freight movement for exports and imports. The national capital region of Delhi is also a major consumer due to large warehouses and transport hubs catering to northern and central India.

Fastest growing region for India pallets market

The India pallets market Growth is growing fastest in states like Andhra Pradesh, Telangana, Karnataka driven by government initiatives promoting industrial infrastructure like special economic zones. Emerging clusters around Bengaluru and Visakhapatnam port are driving significant pallet procurement. Additionally, policy support for agriculture and food processing in states like Punjab, Haryana is boosting demand from warehouses and cold storage facilities.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it