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Why are pallets so hot right now?

April 12, 2023

The global pallets market is an often-overlooked feature of the economy. The trend toward sustainable packaging, the emergence of plastic pallets, and the growth of the e-commerce industry all point to a strong upward trajectory for the size of the pallet market. By 2030, IndexBox reports that the industry is expected to reach 58 billion. The last reported figure from 2022 has estimated its value at 7.3 billion.

Sustainability or efficiency?


One of the biggest trends driving the pallet market is the growing emphasis on sustainable packaging. Companies are under increasing pressure to reduce their carbon footprint and minimise waste, and pallets play an important role in achieving these goals. Wooden pallets are biodegradable and can be recycled or repurposed, making them a sustainable choice for companies looking to reduce their environmental impact.


At the same time, plastic pallets are becoming increasingly popular due to their durability and resistance to damage. According to the Exactitude Consultancy report, the Asia Pacific region accounts for almost half of the global demand for plastic pallets, with China and India leading the way. These countries are rapidly developing and are driving the popularity of plastic pallets in the region.

Global e-commerce


Another major driver of the pallet market is the growth of e-commerce. With more and more consumers shopping online, companies need to find ways to move products quickly and efficiently through the supply chain. Pallets are an essential part of this process, allowing goods to be stacked and transported easily. In addition, the rise of automation in industries such as warehousing and distribution means that there is an increasing need for standard-sized pallets that can be easily handled by machines.


In Australia, pallet sizes are standardised to ensure compatibility with shipping containers and transport trucks. The most common pallet size in Australia is the 1165mm x 1165mm square pallet, which is the standard size used by major retailers and manufacturers. However, other sizes are also available, including the 1200mm x 1000mm pallet, which is popular in the Asia-Pacific region and is suitable for exporting to Europe and the United States.

Shopping online, locally


Another significant factor contributing to the growth of the pallet market is the rise of online grocery shopping in Australia. With the COVID-19 pandemic accelerating the adoption of e-commerce, many consumers have shifted their grocery shopping online. This has led to an increase in the volume of perishable goods being transported, such as fresh produce, dairy, and meat products. Pallets are essential for the transportation and storage of these goods, as they help maintain the quality and freshness of the products during transit. As a result, the demand for pallets in the grocery industry has seen a significant surge, further boosting the growth of the pallet market in Australia.


Ultimately, the pallet market is a vital and growing part of the global economy. As sustainability and e-commerce continue to drive demand, the market is expected to grow significantly in the coming years. For companies looking to invest in this sector, the rise of plastic pallets and the standardisation of pallet sizes offer exciting opportunities for growth and profitability. Contact us at Cooperage Pallets today to discover how pallets can work for you.