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Report Forecasts Global Pallet Sales Growth of 5% through 2017, China to Lead the Way
Activities in the News
Date Posted: 4/1/2014
Not surprisingly, China will experience the largest gains of any national market in the world and will account for over one-fifth of total global unit demand in 2017, according to a report on global pallet sales growth published by The Freedonia Group. This report projects global sales to climb 5% annually through 2017 to 5.1 billion units, an acceleration from the relatively sluggish pace of the 2007-2012 period.
According to analyst Zoe Biller, “Pickup in manufacturing activity will spur across-the-board gains, especially in large, mature regional markets such as North America and Western Europe.”
This report also predicts that stock growth will be fueled by a larger global economy requiring more pallets to accommodate greater shipping requirements, as well as increased utilization of pallets in developing markets, especially Asia and most notably China.
The publisher stated in a press release, “Going forward, greater numbers of potential pallet users will strive to become more competitive on a global scale by improving operating efficiencies and reducing product damage in shipments through the use of pallets. The Asia/Pacific region, led by China, will post the strongest unit sales increases of any regional market, averaging 8.1% per year through 2017. This region will also overtake North America to become the largest regional market by 2017, when it will account for one-third of the global total.”
Although the report indicates a surge in demand for plastic pallets, overall the total market will remain dominated by wooden pallets and packaging. Some companies will shift to plastic because of their perceived advantages when it comes to cleanliness and reducing contamination risks for food, beverage and drug products, according to Freedonia. However, because of their low cost, wooden pallets will continue to dominate product sales in most areas, representing more than nine-tenths of 2017 global unit demand.
For more information on the report or to buy a copy, visit the web site at www.freedoniagroup.com.