February 25, 2024
India Pallets Market

India Pallets Market Demand Is Expected To Booming By Growing Logistics Industry

India pallets market has become an important part of the logistics industry in India as pallets help in easy handling, stacking, transportation and storage of goods. Pallets are wooden platforms used for storing and moving materials and products within warehouses and factories. They are ideal for industries like food & beverage, chemicals, pharmaceuticals, engineering products etc. The growing logistics industry in India due to increased trade activity has boosted demand for more warehouses, distribution centers and container freight stations which in turn has increased the usage of pallets in transportation and storage of goods.

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: Key players operating in the India pallets market include UOP-A Honeywell Company, MPR Industries PLC, John Zink Company LLC, Zeeco Europe and Zeeco India, Gardener Denver, and Ro-Flo Compressors.

Growing demand: Increased e-commerce activity along with growth of FMCG, food processing and manufacturing industries has augmented the demand for warehouse infrastructure thereby boosting the usage of pallets for storage and transportation purposes in India.

Global expansion: Major pallet manufacturers are expanding their operations in India to gain from opportunities in logistics, warehouses, container freight stations associated with growth in manufacturing and retail sectors. Investments in automated pallet handling equipment are on the rise.

Market key trends

Adoption of reusable plastic pallets: With the aim of reducing costs and environmental footprint, pallet users are increasingly adopting reusable plastic pallets made from recycled plastic that have a longer lifespan than wooden pallets. This trend is especially prominent in pharma and FMCG industries.

Porter’s Analysis

Threat of new entrants: Entry barriers to India pallets market Demand manufacturing are low due to the availability of raw materials easily and capital required is moderate.
Bargaining power of buyers: Buyers have high bargaining power due to the availability of numerous pallet manufacturers in India providing substitutes.
Bargaining power of suppliers: Suppliers have moderate bargaining power as pallet manufacturers require standard raw materials like wood that is easily available. Switching cost for suppliers is low.
Threat of new substitutes: Threat of new substitutes is moderate as there are other packaging materials available like cardboard boxes, shrink wrap films but pallets have wider application in manufacturing, transportation and warehousing.
Competitive rivalry: Competition is intense between established pallet manufacturers.

Geographical regions: Currently North India accounts for around 35% of the total India pallets market in terms of value led by states like Delhi, Uttar Pradesh, Haryana which are major manufacturing and transportation hubs.

The southern region particularly states of Tamil Nadu, Karnataka and Telangana is growing at the fastest pace attributed to rapid industrialization and investments in manufacturing, automotive sectors. Major ports like Chennai, Kochi and development of industrial clusters are propelling demand for pallets in these states.

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