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India Pallets Market Will Grow At Highest Pace Owing To Transportation And Logistics Sector Growth

Leena Shedmake
India Pallets Market Will Grow At Highest Pace Owing To Transportation And Logistics Sector Growth

The India pallets market has been gaining high traction over the years owing to growing demand across various end-use industries such as food and beverages, chemicals and pharmaceuticals, construction, and transportation and logistics among others. Pallets are widely used for storing, transporting and handling of materials across warehouses, production facilities, distribution centers and throughout the supply chain. Some key advantages of using pallets include ease and speed of handling, reduction in material handling costs, better inventory management and increased safety. The growth of the transportation and logistics industry has been a major driver behind the demand for pallets in India.

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 footprint and product portfolio in India to tap the market potential.

The growing demand from the food and beverages industry has been a major factor driving the demand for pallets in India. Factors such as changing consumption patterns, rising disposable incomes and growing middle class population are fueling the growth of the food processing industry in the country.

Technological advancements in pallet designs catering to industry-specific requirements, automation in pallet manufacturing processes and introduction of smart pallet rental systems are expected to offer new growth opportunities for pallet manufacturers and suppliers over the coming years.

Market Trends

Two key trends being witnessed in the India pallets market include growing preference for recyclable and reusable plastic pallets and surging adoption of pallet rental services. With rising sustainability concerns, plastic pallets made from recycled content are gaining popularity compared to wooden pallets. Pallet rental services help reduce capital costs and ensure constant pallet supply, which has boosted their adoption.

Market Opportunities

Growing investments in warehouses, distribution centers and expansion of tier-II and tier-III cities are expected to open up new growth avenues for pallet manufacturers and suppliers. There exists high opportunity to export Indian-made pallets to other developing economies in the Middle East, Africa and Southeast Asia regions.

Impact of COVID-19 on India Pallets Market

The COVID-19 pandemic has significantly impacted the growth of India pallets market. During the pre-COVID times, the market was growing at a steady pace owing to increasing industrial and manufacturing activities in the country. However, the imposition of lockdowns severely disrupted the supply chains and hampered production as factories were shut down to curb the spread of the virus. This led to a major decline in demand for pallets from key end-use industries like food and beverages, automotive, pharmaceuticals, chemicals etc. Movement of goods was also restricted during the peak pandemic phase, which further negatively impacted the pallet market.

As the lockdowns are being gradually lifted now and economic activities are resuming, the pallet market is witnessing signs of recovery. However, the demand is yet to reach the pre-COVID levels. The impact of second and third waves also needs to be carefully monitored. To sustain growth in the post-COVID era, manufacturers will have to focus on optimizing costs, enhancing supply chain resilience, digital transformation, and adapting to changes in consumer behavior and demand patterns. Strategic partnerships and collaboration within the supply chain are crucial. Emphasis on hygienic and reusable plastic pallets can boost demand from pharmaceutical and food processing industries.

Geographical Regions with Highest Market Concentration in India

The India pallets market Growth in terms of value is highly concentrated in Western and Southern regions of the country. States like Maharashtra, Tamil Nadu, Karnataka and Gujarat account for more than 50% of the overall market revenue. This is due to presence of major automotive, industrial equipment, FMCG, pharmaceutical and chemical hubs in these states. The thriving manufacturing sector and strong demand from end-use industries drive higher pallet consumption. Cities like Mumbai, Chennai, Bengaluru and Ahmedabad have emerged as top pallet consuming centers.

Fastest Growing Regional Market

The Northern region comprising states like Uttar Pradesh, Haryana, Punjab, Delhi NCR is emerging as the fastest growing regional market for pallets in India. With government initiating policies to promote 'Make in India' and industrial corridor projects, massive investment is flowing into this region to set up manufacturing units. Rapid urbanization and growing e-commerce sector are also propelling pallet demand. For instance, the National Capital Region (NCR) around New Delhi saw an exponential rise in warehouses and distribution centers post COVID, augmenting pallet requirements

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Leena Shedmake
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