Demand revival at retailers is driving pallets growth, says Exzod India
Mumbai, 18 August 2023: The retail space is advancing at a faster pace leading to shoppers adopting experiences that allow them to make purchases in the most convenient ways possible. Pallets are utilized in the retail industry to transport goods from distribution centres to stores. The products that are commonly transported using pallets in the retail industry include clothing, consumer electronics, toys, and home appliances.
For EXZOD India, a leading player in pallets manufacturing, sale, and Annual Maintenance Contract (AMC) services, the pallets are at the centre of the logistics and supply chain channel and will continue to offer opportunities, with an upsurge in the share of organized retail and e-commerce.
According to Nitin Kalla, founder & MD, of EXZOD India, “The rapidly expanding e-commerce industry is driving India’s demand for pallets, and the pallet businesses make sure to deliver exceptional results. In order to move inventory closer to customers and allow faster delivery, there has been a perceptible shift towards the development of more warehouse facilities across the nation. In an e-commerce-driven atmosphere where customer expectations for quick order delivery have increased, no one wanted a shortage of pallets to halt trade or even delay deliveries by one day.”
“Businesses now demand their pallet suppliers to actively contribute to enhancing the sustainability of their supply chains due to the growing focus on environmental responsibility across all sectors. As for the sustainability requirements of retailers, industry efforts have set wooden pallets up for success,” added Nitin Kalla.
The wooden pallet market is currently experiencing substantial growth due to the increasing demand for packaging and logistics services in industries such as retail and e-commerce. Future Market Insights projects a compound annual growth rate (CAGR) of 5.4% between 2022 and 2032, with the market value expected to reach US$3.8 billion. Several factors contribute to this growth, including the rising preference for environmentally friendly and sustainable packaging options, according to the report.
Knight Frank India has released its flagship report titled ‘India Warehousing Market Report – 2023’, which assessed warehousing leasing across 8 primary markets and 17 other secondary markets in India. In the financial year 2023, the top 8 markets experienced a historic high in demand, reaching 51.3 million square feet of warehousing space. The CAGR from FY17-23 has been 24%. Notably, Mumbai, Bengaluru, and Kolkata witnessed a historically high volume of transactions in FY23. The surge in activities from the Third-party logistics (3PL), manufacturing, and retail sectors has contributed to the increased demand for warehousing, the report said.