How the Russian pallet market is developing
Despite the fact that prices have increased more than 2.5 times over the year, the Russian market of pallets is actively developing. Now about 230 million such pallets are used in the country, they are increasingly in demand in the logistics industry for the transportation of various goods, ranging from food to construction materials and large-size equipment. Pallets in this case serve as a universal transportation option, they help not only to transport, but also to stack and store goods.
According to official data, about 90% of manufacturers and transporters use pallets as an excellent substitute for traditional crates and drums. The main consumers of such packaging are the retail segment.
More often than not, manufacturers buy or rent pallets, and are compensated through the inclusion of these costs in the total cost of packaging for transportation. Once such containers lose their quality characteristics, they are repaired and resold for other needs. Pallet rental services are provided by operators who deal with logistics packaging, they are called pullers.
Mostly use pallets made of wood, less often prefer products made of plastic or other materials. The main advantage of pallets is the possibility of multiple use. In addition, they are environmentally friendly and fully comply with the principles of sustainable development. Pallets are easy to repair, thanks to which about 1% of products are renewed in total use during the year. This feature makes it possible to reduce container production. For example, approximately 30 million pallets will be produced in Russia in 2020.
It should be noted that the possibility of multiple use is attractive for consumers from an economic point of view. The fact is that the cost of making pallets has increased significantly recently. Lumber is used for their production, the price of which has risen. In addition, the pandemic has led to an outflow of labor, which also had an impact on costs. As a result, the cost of pallets is now at its highest level, making it difficult for companies to purchase products.
During 2020-2021, European countries saw record levels of demand for pallets, driven by the rapid growth of online commerce. At the same time, there was a shortage of lumber, which caused a rise in the price of packaging. This situation was reflected in the global market, and combined with domestic problems, prices in Russia increased by 2.5 times. However, the price increase is not a limiting factor for the segment – the demand for pallets is still high. In addition, the increase in online trade suggests that the demand for pallets will continue to grow.