Steady market growth between 2014 and 2018 reflected a rate of nearly 4.5%. Today, lightweight, 100% recyclable, and customisable paper pallets are being touted as competitive to the hardwood pallets.

Initially positioned as a cost effective alternative to return trip costs associated with wooden pallets, paper pallets are witnessing an increased rate of adoption. The FMI study has projected this market to register a compound annual growth rate (CAGR) of 6% over the forecast period of 2019 to 2029.

This strong growth outlook is majorly attributed to complementarities of paper pallet with the light weighting trend. Adoption of paper pallet is on a slight yet constant rise owing to its resilient structure and complete recyclability. Cost efficiency would remain an add-on, according to the report.

Through 2029, the current market value of paper pallets is expected to double. The electrical and electronics industry is expected to be a prominent end-use industry owing to demand for shelf-ready paper pallets for displaying bestsellers such as smartphones, tablets, and laptops. Besides, lucrative opportunities within the cosmetics and personal care sector are another factor expected to boost the growth of the paper pallet market.

According to the report, depending on load lifting and storage conditions, two-way paper pallets are more economic for manufacturing and provide good strength for load lifting. However, the key limitation of two-way pallet is that it offers less flexibility and constraint of load lifting from all directions. Market players are addressing this limitation by developing four-way pallets.

Analysis on the basis of pallet structure reveals that hybrid pallet market is witnessing growth over the recent past. Along with the combined benefits of honeycomb and corrugated pallet for load carrying, hybrid pallet ensures buckle-free load lifting.

In contrary to their wooden and plastic counterparts, paper pallets do not require chemical processes to maintain their shelf life, which will boost their preference in the long run, the report stated.

The study also identified that paper pallets are highly resistant to fungal and bacterial impact and thus ISPM-15 compliance is not mandatory for their usage. Advancements in engineering technologies and paper pallet designs have also been translating into improved load carrying capacity. End users are thus expected to initiate a shift from traditionally used pallets to more sustainable paper pallets.