Summary

Pallet usage is anticipated to be strong during the anticipated years in the Asia-Pacific area. Pallets made of wood and plastic are the most commonly used in the region for large-scale goods exports and imports. In the foreseeable future, it is projected that countries like Japan, China, and India will have the most developed marketplaces. The sustainability idea has also been a defining feature of the Asia Pacific pallet market. It is possible to identify finished markets that prefer products with longer lifespans, which encourages local manufacturers to expand along these lines. Furthermore, it has been observed that pallet manufacturers collaborate on related initiatives. The square pallet (1100mm x 1100mm) and the rectangular pallet (1200mm x 1000mm) are the two most common pallet sizes in Asia, and ISO approves both. On the other hand, the 1200 x 1000-mm pallet is more appropriate for export from Asia-Pacific to Europe and the United States because these dimensions fit well with both regions' systems. Furthermore, the region also witnessed investments augmenting the market's growth. For instance, in January 2021, Morgan Stanley India Infrastructure, an infrastructure-focused fund, invested USD 25 million in LEAP India (Leading Enterprise in Advanced Pooling). LEAP India is a major player in the country's pallet pooling market. It focuses on expanding the company's assets from 4 million to 6 million units, including pallets, large foldable containers, crates, and utility boxes.

According to the research report, "Asia-Pacific Pallet Market Outlook, 2028," published by Bonafide Research, the market is anticipated to add USD 11.47 billion from 2023 to 2028. Factors such as rapid development in the automotive and packaging industries and the growing demand for effective and advanced pallets are anticipated to propel the growth of the Asia-Pacific pallet market. Besides, the presence of numerous medium-to-large players in the region is also attributable to rapid revenue growth. Several companies globally are trying to provide sustainable solutions to the market. For example, the supply chain management firm Yelopack offers smart logistic solutions on the basis of shared pallet and package services to industrial customers with a presence in countries such as China, South Korea, Russia, Japan, Malaysia, and Singapore. The company adopted the AFFINITY polyolefin elastomer (POE) in its current plastic pallets in 2021. The adoption of this technology, which is offered by Dow, permits Yelopack to intensify the lifespan of its pallets by nearly 150%, plummeting its carbon footprint.

Asia-Pacific is the fastest-growing region for the wood packaging industry because wooden pallets and boxes are increasingly being adopted by distribution centers, production units, and manufacturing units because of their cost-effectiveness. Wooden pallets have a lower average cost than plastic pallets and are also fully recyclable. The introduction of stackable pallets will also help reduce the cost of floor spacing and improve space utilisation for end-users. Based on the material type, wood pallets are projected to lead the market in the upcoming time period. Factors contributing to the increased requirement for pallets on a global scale include higher end-user demand, particularly from emerging economies like China and India.

Furthermore, the automobile industry has also experienced a boost as economies move from recession into recovery, and as this trend looks set to continue, it places additional demand on the pallet industry to provide appropriate transportation solutions. The same is also the case for the packaging industry. The environment and the requirement to operate on a more environmentally friendly level are also likely to have an impact in the near future. As demand for safe, more effective, and easier transportation solutions continues to rise, the pallet industry is taking advantage of the opportunity to expand into new territories and emerging markets. This is particularly true of the leading manufacturers. As the need for a more sustainable option becomes ever more important, the plastic pallet industry is likely to experience further large-scale growth in the medium to long term. On the other hand, the region's consistently increasing market growth for the food and beverage industry is also contributing to increased pallet demand.

In the case of COVID-19, APAC is highly affected, especially India. The severity of the consequences and impact are entirely dependent on the transmission of the novel coronavirus. Various governments in the region are taking serious actions to limit the spread by imposing lockdowns, which are slowing down import and export activities and leading to a slowdown in logistics operations. This factor is anticipated to severely impact the growth of the regional market. However, due to vaccination and fewer restrictions, businesses are resuming across the region. The introduction of COVID-19 vaccines by governments has alleviated the situation, resulting in an increase in business activity across the region. Moreover, logistics companies involved in the transportation of vaccines are among the top consumers of thermal pallet covers, as vaccines are temperature-sensitive and require ambient atmospheres for storage. Thus, this factor is significantly boosting the market's growth.

The pandemic has spurred the development of the e-commerce industry. Therefore, customers get access to a wide range of products, such as essential goods, convenience products, and safety goods. It has also allowed businesses to continue their operations despite limitations and restrictions on industrial and transportation activities. With the growth of the e-commerce industry across the region, the logistics operations are expected to gain significant growth, which, in turn, will drive the growth of the thermal pallet covers market in APAC. With the new features and technologies, vendors can attract new customers and expand their footprints in emerging markets. Pallet demand is predicted to skyrocket as the e-commerce industry continues to grow at an unprecedented rate. The COVID-19 pandemic has increased people's interest in e-commerce platforms, especially in nations like India, where they were previously less common. As a result of the increased use of e-commerce platforms, supply chains have been forced to create transportation and logistics in order to control the flow and cost of departing and incoming commodities. Online orders are smaller and more frequent, necessitating more assets for inventory management. As a result, there is a demand for pallets for e-commerce-based logistics, which propels the pallet market forward.

The type of pallet that is most commonly used in the Asia-Pacific region can vary by country and industry. However, some of the most commonly used pallet types in the region include the Asia pallet, also known as the Japanese pallet, which is a popular pallet size in Japan and other countries in the region. It measures 1100x1100mm and is typically made of wood. The Australian pallet, also known as the Australian standard pallet, is commonly used in Australia and measures 1165x1165mm. It is made of either hardwood or softwood and can hold up to 2,000 kilograms. The ISO pallet is a standardised pallet size that is used globally. It measures 1200 x 1000 mm and is made of wood or plastic. It is commonly used in industries such as food and beverage, pharmaceuticals, and retail. Plastic pallets are becoming increasingly popular in the Asia-Pacific region due to their durability, reusability, and ability to meet hygiene standards. They are commonly used in industries such as pharmaceuticals, electronics, and food and beverage. In some cases, custom pallets may be used in the Asia-Pacific region to meet the specific needs of certain industries or applications.

Some common regulations and requirements that may apply include the International Standards for Phytosanitary Measures No. 15 (ISPM 15) regulation, which applies to wood packaging materials used in international trade. Under ISPM 15, wood pallets that are used for international shipments must be heat-treated or fumigated to prevent the spread of pests and diseases. Many countries in the Asia-Pacific region have their own national standards for pallets, which may vary in terms of materials, size, and design. Companies that use pallets in these countries must ensure that their pallets meet these national standards. Pallets used in the food and beverage industry must meet strict food safety regulations to prevent contamination and ensure the safety of the products being transported. These regulations may include guidelines for materials, cleaning procedures, and handling practices. Some countries in the Asia-Pacific region have regulations governing the use of certain materials for pallets, particularly with regards to their environmental impact. For example, there may be restrictions on the use of certain chemicals or treatments for pallets. Certain industries may have specific regulations governing the use of pallets. For example, the pharmaceutical industry may require pallets to be made from certain materials to prevent contamination, while the automotive industry may have requirements for pallets used in the transport of heavy or oversized parts.

Pallet Association:
• Asia Pallet Pooling (APP): This is a pooling service for plastic pallets in the Asia-Pacific region that offers a standardised platform for the efficient movement of goods. The APP operates in several countries, including Japan, South Korea, and Australia.
• Asia Pacific Pallet Pooling Alliance (APPA): This is a collaboration between several pallet pooling companies in the Asia-Pacific region that aims to promote the use of pooled pallets and containers as a more sustainable and cost-effective alternative to single-use packaging.
• Japan Pallet Rental Corporation (JPR): This is a major pallet rental company in Japan that operates a network of pallet rental and pooling services across the country.
Recent Developments:
• Loscam, a leading provider of pallet and container pooling solutions in the Asia-Pacific region, has recently expanded its operations in Southeast Asia by opening a new pallet repair and retail facility in Vietnam. The new facility is part of the company's strategy to strengthen its presence in the Vietnamese market and improve its service offerings to customers in the region.
• PalletBiz, a Denmark-based pallet manufacturer and supplier, has recently opened a new factory in India. The new factory will help the company expand its production capabilities and improve its ability to serve customers in the Indian market.
• Satyam Industries, an Indian pallet manufacturer, has recently invested in new machinery and equipment to expand its production capacity and improve the quality of its pallets. The company has also launched a new range of sustainable pallets made from recycled materials in response to growing demand for environmentally friendly solutions in the region.
• Tasman Logistics Services, an Australian logistics company, has recently acquired a new automated pallet system to improve the efficiency and speed of its warehouse operations. The new system will help the company handle a larger volume of pallets and improve its ability to serve customers in the region.

Major Companies present in the market:
DS Smith, Smurfit Kappa group, Conitex Sonoco, Cabka Group GmbH, UFP Industries, Inc, Schoeller Allibert Services B.V., Brambles Limited, Loscam, Tranpak Deliver Innovation

Considered in this report
• Geography: Asia-Pacific
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Asia-Pacific Power Tools market with its value and forecast along with its segments
• Country-wise Power Tools market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:
• China
• Japan
• India
• Australia
• South Korea

By Material Type:
• Wood
• Plastic
• Metal
• Corrugated
• Others

By End Use:
• Food and Beverages
• Chemicals
• Pharmaceuticals and Healthcare
• Automotive
• Transportation & Warehousing
• Consumer goods and Retail
• Engineering
• Agriculture
• Others

By Application Type:
• Rental
• Non-rental

By Structural Design Type
• Block
• Stringer
• Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Pallet industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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