Chile Plastic Pallets Market Report and Forecast 2024-2032

Chile Plastic Pallets Market Size

The Chile plastic pallets market attained a volume of 704.3 thousand units in 2023. The market is estimated to grow at a CAGR of 6.3% during 2024-2032 to reach a volume of 1,215.7 thousand units by 2032.

Chile Plastic Pallets Market Outlook

• In 2023, Mexico’s freight and logistics market accounted for USD 128.10 billion.

• In 2022, the food and beverage sector in Chile accounted for 15.2% of the country’s exports at USD 15 billion, an increase from 13.5% at USD 12.8 billion in 2021. 

• In 2022, polyethylene and polypropylene, which account for 71% of total plastic production in Chile were the most recycled plastics.

Chile Plastic Pallets Market Growth

The plastic pallets market in Chile is witnessing an increasing demand from end-use sectors including food and beverages, construction, and pharmaceuticals due to its advantageous features such as durability, hygiene, and recyclability. Plastic pallets are commonly used in logistics for transporting furniture, including flat-packed pieces, assembled items, and bulky goods such as mattresses and sofas.

The logistics sector in Chile is largely driven by the rising demand for commodities, boost in trade, and the need for effective supply chain solutions. In 2023, Chile exported USD 94.9 billion worth of goods, increasing from USD 68.7 billion in 2019. Chile’s top export partners were China with 39.4% share followed by the United States with 13.9% of the market.

Further, Chile has a developed food processing industry that generates USD 23.3 billion annually and is forecast to grow by 35 percent by 2030. Moreover, there are growing opportunities for exporting food products in the country. In fact, Chile is the third-largest market in South America for U.S. agricultural products.

Figure: Logistics Performance Index (LPI) of Chile, 2018 and 2022

Key Trends and Developments

Rising online deliveries; expansion of construction sector; significant foreign trade; and growing demand for plastic pallets made from recycled material are the key trends impacting the Chile plastic pallets market growth

Jan 16, 2024

IFCO, the world’s leading provider of reusable packaging containers (RPCs), announced the launch of Dora, a revolutionary reusable plastic pallet. Purpose-designed for RPC compatibility and available through IFCO’s circular model pooling system, Dora fits seamlessly into existing fresh grocery supply chain operations, ensuring long-term higher logistics efficiency and sustainability gains for suppliers and retailers.

The expansion in online food deliveries aids the demand for plastic pallets

Plastic pallets are durable, offer better hygiene, and are impervious to liquids, soil, odours, and other contaminants. Online food delivery has boosted the use of plastic pallets. In 2022, online ordering accounted for 23% of all restaurant orders, a significant increase from 2019.

Plastic pallets can be employed in sustainable construction projects

Plastic pallets reduce waste and promote sustainability. As of 2024, Chile boasts 290 Leadership in Energy and Environmental Design (LEED) certified buildings, making it the 2nd largest in Latin America. The construction sector in Chile is estimated to reach USD 46.3 billion in 2024, increasing from USD 42.2 billion in 2019. Being an eco-friendly material, it has significant opportunities in the construction sector.

Foreign trade growth drives the growth of plastic pallets market

Plastic pallets are often made of high-quality plastics and 100% recycled materials, creating lucrative opportunities in green logistics. Plastic pallets reduce storage volume substantially, which is beneficial for logistics and trading. As of 2024, Chile’s foreign trade accounted for 75% of its GDP. The growing demand for high-quality and durable packaging in trading supports the growth of plastic pallets market.

Rising demand for plastic pallets made from recyclable materials

Plastic pallets offer substantial environmental benefits due to their recyclability and the possibility of being produced from recycled plastics. This recycling capability contributes positively to sustainability efforts by reducing the demand for virgin plastic and diverting plastic waste from landfills. As of March 2024, according to the Chilean Plastics Pact (Pacto Chileno del Plástico), Chile consumes approximately 990,000 tons of plastic annually, recycling 8.5% of this waste which can be used as a feedstock for plastic pallets.

Chile Plastic Pallets Market Trends

Plastic pallets are designed using strong, non-porous materials like polypropylene (PP), high-density polyethylene (HDPE), copolymer blends, and other plastics. These pallets are long-lasting, versatile, and hygienic, making them ideal for end use markets, like food service and the medical and pharmaceutical sector. Chile is a significant importer and exporter of pharmaceutical products. During 2019-2023, Chilean export of pharmaceuticals accounted for 6.5% of total imports. In 2023, its FOB value was USD 203.645 million, with 55% of exports corresponding to Saval, Synthon, and Bago Laboratories. During 2023, total pharmaceutical product imports in Chile in CIF value stood at USD 2,246.774 million.

Chile’s main agricultural exports include fresh fruit, dairy, salmon, wine, pork, poultry, and forestry products. The growing Chilean export market aids the demand for plastic pallets due to their durability and hygienic benefits. Plastic pallets are light weight, offering cost savings during transportation, especially for exports, where weight is a crucial factor.

Chile Plastic Pallets Industry Segmentation

“Chile Plastic Pallets Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Nestable

• Rackable

• Stackable

• Others

Market Breakup by Material

• High-Density Polypropylene (HDPE)

• Polypropylene (PP)

• Others

Market Breakup by End Use

• Food and Beverages

• Construction

• Pharmaceuticals

• Consumer Durables

• Petroleum and Lubricants

• Others

Chile Plastic Pallets Market Share

Based on type, stackable accounts for a significant share of the market

Stackable pallets are typically used to carry heavier loads and are widely adopted in warehousing, processing, and manufacturing environments. The Port of Talcahuano has two warehouses and 33,000 sq m of storage space, while Port of Iquique has nine warehouses, and the Port of Arica has warehouses spanning 28,000 sq m.

Rackable pallets are designed with solid plastic top and are typically found in a standard 48x40 size. Due to the heavy-duty nature, rackable pallets have a longer shelf life and more reusable.

Based on end use, the food and beverage sector is a major contributor to the Chile plastic pallets market revenue

In 2023, Chile had 98,890 food processing companies. According to Foreign Investment Agency of Chile, about 54% of the food produced in Chile is set aside for domestic consumption, and 46% is exported to over 180 countries worldwide. The presence of a significant food export environment in Chile is catering to a demand for plastic pellets for logistics purposes.

The expansion of e-commerce sector in Chile is contributing to the growth of consumer durables market. In 2022, cosmetics and body care products contributed to 26% of the total products purchased online. Pallets are widely adopted in warehouses as it allows for easy stacking and arrangement, allowing for the efficient use of vertical space.

Leading Players in the Chile Plastic Pallets Market

The market players are focusing on providing products at competitive prices and high quality, with improved customer service, product support, and performance features.

Pallet Plastico SpA

Pallet Plastico is dedicated to the marketing of new and used plastic pallets, addressing the diverse needs in merchandise handling and logistics. Founded in 1995, the company serves a range of industries, including industrial, agricultural, fishery, mining, transport, and logistics.

Polychem - Industrial Plastics Company Ltd.

Founded in 2000, Polychem is a company dedicated to engineering development and innovation in polyethylene products. Committed to constant innovation, the company meticulously analyzes client needs to develop tailored products. Polychem operates factories in Puerto Montt and Santiago, enabling effective production and distribution of its products across Chile.

SANYLOP Ltda.

SANYLOP Ltda. is a company established to address packaging challenges in various industries, particularly excelling in the provision of reconditioned pallets. Founded in 2004, SANYLOP Ltda. operates within Chile, addressing packaging needs across various sectors.

Cabka N.V.

Headquartered in Germany, Cabka specializes in pallets and large containers made from recycled plastic. Cabka operates six production sites in Germany, the U.S., Belgium, and Spain, the company employs over 700 specialists, including engineers, logisticians, and materials technicians.

Other notable players operating in the Chile plastic pallets market are Brambles Limited (CHEP), Matriplast, Soliplast S.A., and IFCO SYSTEMS GmbH, among others.

Key Highlights of the Report