South America Pallets Market Outlook, 2028

A pallet is a horizontal portable platform attached to a superstructure and a bottom deck. It is used as tertiary packaging to facilitate the transportation and shipping of goods and materials using various materials handling equipment, such as cranes, lift trucks, front loaders, and conveyors. Several standardised pallets with different sizes and configurations are available on the market. A pallet is a lightweight, cost-efficient structure used to lift and place heavy goods on trucks, ships, and planes by forklift. The South American pallet market is primarily driven by the growing retail and automotive sectors. On account of this, manufacturers require pallets for the safe transportation of products from one location to another. They also store several pallets in tall stacks with minimal floor space in the warehouse. Additionally, the growing construction and infrastructural activities have increased the need for pallets to offer improved efficiency of transport equipment and faster turnaround of delivery vehicles. Pallets also allow shippers to stack multiple heavy items on a single pallet to avoid damaging the products.

According to the research report, South America Pallet Market Outlook, 2028, the market is anticipated to grow at a 7.63% CAGR from 2023 to 2028. The South American pallet market is highly fragmented, with many small and large players operating in it. Some of the key players in the market include Brambles Limited, Jabil Packaging Solutions, Inc., PalletOne, Inc., and RM2 International SA. These players are focusing on research and development, strategic partnerships, and geographic expansion to enhance their market position and product offerings. Pallets are used in various industries in the region, including food and beverage, pharmaceuticals, logistics, retail, and more. They are essential tools for storage, handling, and transportation of goods, and they provide a safe and efficient means of moving goods within supply chains. In the food and beverage industry, pallets are used for transporting and storing goods such as grains, fruits, vegetables, and processed food products. In the pharmaceutical industry, pallets are used for the storage and transportation of drugs and other medical supplies. In the retail industry, pallets are used to transport and store products such as electronics, clothing, and household goods. According to the report, the market is segmented into various end users, including food and beverages; chemicals; pharmaceuticals and healthcare; automotive; transportation and warehousing; consumer goods and retail; engineering; agriculture; and others. Among them, the food and beverage segment is leading the market, followed by transportation and warehousing.

Furthermore, the South American wood pellet market is expected to register significant growth in the coming years owing to the escalating cost of fuel and increasing awareness campaigns regarding the benefits of these pellets, including a lower rate of carbon emissions, which are expected to propel the growth of the wood pellet market in South America. Rising concerns over climate change effects and increasing carbon emissions in the main countries such as Brazil and Argentina have derived from the use of wood pellets; also, the production capacity of wood pellets in Chile is rapidly increasing due to low manufacturing costs. Brazil and Argentina are two of the leading producers of wood pellets, made of industrial round wood and sawdust. The rapid rate of production of wood pellets across the South American region will be a major growth factor for wood pellets in South America. Moreover, the outbreak of coronavirus has impacted economic growth across all industries globally. However, things are getting back to normal, and extra efforts are being taken by every country, which is further expected to register strong growth in the economy over the upcoming years.

The growth is attributed to the increasing demand for pallets in various end-use industries, the rise of e-commerce and retail activities, and the growing need for efficient and safe material handling. In South America, there is a growing trend towards sustainable and eco-friendly pallets, which has led to an increased demand for pallets made from recycled materials such as recycled plastic and wood. Pallets are also commonly used in logistics and transportation, where they provide a means of moving goods efficiently from one location to another. They are used in warehouses, distribution centers, and transportation hubs to move goods between trucks, trains, and other modes of transportation.

Overall, pallets are widely used in South America and play a crucial role in many industries and supply chains in the region. In South America, the type of pallet that is most commonly used can vary by country and industry. However, some of the most commonly used pallet types in the region include:

• Brazilian pallet: The Brazilian pallet is a popular pallet size in Brazil, and it measures 1000x1200mm. It is typically made of wood and can hold up to 2000 kilograms.
• ISO pallet: The ISO pallet is a standardised pallet size that is used globally and is also commonly used in South America. 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.
• Custom pallets: In some cases, custom pallets may be used in South America to meet the specific needs of certain industries or applications.
• Other types of pallets: Other types of pallets, including plastic and metal pallets, are also used in South America. However, wooden pallets are still the most commonly used type of pallet in the region.

Furthermore, 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, including pallets. 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 South America 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. Some countries in South America 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 Associations:

• The Brazilian Association of Wooden Pallet and Packaging Manufacturers (ABIMCI): This is the largest association of pallet and packaging manufacturers in Brazil, which represents companies involved in the production and distribution of wooden pallets, crates, and other packaging materials.
• National Association of Pallet Manufacturers and Repairers (ANIMAR): This is an association of pallet manufacturers and repairers in Argentina that aims to promote the use of high-quality pallets and improve industry standards in the country.
• Asociación Southoamericana de Paletas y Embaljes de Madera (ALAPE): This is a South American association of wooden pallet and packaging manufacturers that represents companies in several countries, including Argentina, Brazil, Chile, and Mexico.

Recent Developments:

• Fabrimar: Fabrimar, a Brazilian pallet manufacturer, has recently invested in new technology and equipment to improve its production processes and enhance the quality of its pallets. The company has also expanded its product offerings to include new pallet designs and sizes in response to changing customer needs.
• Marini Madeiras: A Brazilian wood products company, Marini Madeiras, has recently opened a new pallet manufacturing facility in So Paulo. The new facility has state-of-the-art equipment and machinery to improve the efficiency of production and increase the company's capacity to serve customers in the region.
• PalletOne: PalletOne, a US-based pallet manufacturer with operations in several countries, including Brazil, has recently acquired a new pallet plant in Argentina. The acquisition is part of the company's strategy to expand its presence in the South American market and better serve its customers in the region.
• Sanco Comércio e Indstria: Sanco Comércio e Indstria, a Brazilian pallet manufacturer, has recently launched a new line of pallets made from recycled plastic. The new pallets are more sustainable and environmentally friendly than traditional wooden pallets, and they have been well-received by customers in the region.

Major Companies present in the market:

Conitex Sonoco, Cabka Group GmbH, Menasha Corporation, UFP Industries, Inc, Schoeller Allibert Services B.V., Brambles Limited, Loscam, Tranpak Deliver Innovation

Considered in this report

• Geography: South America
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• South America 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:

• Brazil
• Argentina
• Colombia

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.