Posted On: 2021-04-06
The Saudi Arabia Pallet market grew at a considerable rate during the period 2017-2020 as a result of improvement in the Saudi economy supported by the growth in both, oil and non-oil sector- 6Wresearch
As a result of improvement in the Saudi economy supported by the growth in both, oil and non-oil sector, the Saudi Arabia pallets market grew at a moderate pace during the period 2017-2020. However, the ongoing pandemic COVID-19 slowed down the growth of the market during the year 2020 as a result of the decline in demand during the lockdown period across the country. Despite the slowdown in the market during the lockdown period, the pallets market began to recover in the latter part of the year on the back of reopening of commercial activities and thus, rising industrial and commercial demand for pallets. The continued positive performance of the non-oil sector such as the manufacturing and food & beverage industry, along with the continued government efforts to boost domestic production and rising food exports from the country, would enhance the pallet market revenues in Saudi Arabia during the forecast period.
According to 6Wreaserch, The Saudi Arabia pallets Market size is projected to grow at a CAGR of 5.3% during 2021-27. Owing to the government policies shifting in favour of economic diversification, open economy and encouraging private investment which would embark a positive influence on the industrial sector in the country, the market demand for pallets is anticipated to grow significantly over the coming years. Further, the government investment to increase international trade and the growing e-commerce sector would bolster the pallet market growth during the forecast period.
According to Alpana Tyagi, Senior Research Analyst, 6WResearch, “The wooden pallets segment accounted for the majority of the revenue share in 2020 and would continue to maintain its dominance during the forecast period on account of their superiority in terms of capacity to hold more weight. Furthermore, low cost, easy repair and reuse are some of the advantages of wood pallets, thus making them more preferable over the other form of pallets.
However, the highest growth is anticipated in plastic pallet market revenues as the plastic pallets could be used for a long time without breakage making them suitable for storage and reuse in warehouses. The durability of plastic pallets, along with sleek and splinter-free design makes them friendly for manual handling and thus are ideal for use on pallet wrapping machines.” Alpana further added.
According to Kajal Saraswat, Research Associate, 6WResearch, “The food and beverage sector currently represents the largest segment owing to the rising domestic, regional and international demand for Saudi food products, with seafood, dates and halal foods leading the way. Also, the demand for pallets from the transportation & warehousing sector is projected to post faster growth in the forthcoming period owing to the several investments in transport sectors being made to make Saudi Arabia the regional logistics hub.
“The Saudi Arabia pallets Market (2017-2027)" report provides an in-depth analysis with 13 figures with 9 tables, covered in 85 pages. The report estimates and forecasts the overall market by material type, end-user and regions. The report provides an unbiased and detailed analysis of the ongoing trends, opportunities/high growth areas and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.