Molded Wood Pallets Market

2021 Analysis and Review: Molded Wood Pallets Market by Size – Quarter Size Pallet, Half Size Pallet, Full Size Pallet for 2021-2031

Molded Wood Pallets Market Snapshot

The molded wood pallets market is expected to witness a soaring growth in 2021 with worldwide revenues up 3.4% year over year. A new forecast by FMI estimates that molded wood pallets revenues will nearly double between 2021 and 2031, reaching nearly US$ 4.5 billion in 2031 at a ten-year compound annual growth rate (CAGR) of 5.8%

The demand for molded wood pallets in Canada is estimated to increase by nearly 5.1% year on year in 2021, while total sales will reach a valuation of US$ 183.2 million.

Key Points Covered in Molded Wood Pallets Market

  • Market estimates and forecast 2014-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on Molded Wood Pallets and How to Navigate
  • Recommendation on Key Winning Strategies

2014-2020 Molded Wood Pallets Market Outlook Compared to 2021-2031 Forecast

The global market for molded wood pallets is expected to increase at a volume growth rate of 5.2% during 2021-2031 in comparison to the 1.9% CAGR registered during 2014-2020. Expansion of the market can be attributed to the high demand for e-commerce shipments, logistics, building & construction which is expected to fuel the demand for molded wood pallets.

Wood pallets are the first line of defense for ensuring the packaging is safe enough to ship products to the destination. A high quality wooden pallet is best suitable to lift high volume of products during transit, resulting in cost optimization that might occur during damage or if it is contaminated.

It also prevents any injury that might occur to the labor from overload. Shippers select pallet that meets the global shipping needs in an efficient way. Shipments that are short on space and in need of full and fractional sized pallets drive the growth of the molded wood pallets market. Rather than focusing on less cost, shippers focus on packaging that is stiff, high tensile strength, durable, low weight and temperature resistant.

How is International Trade Favoring Growth in the Molded Wood Pallets Market?

Solid wooden packaging material trade between different countries is regulated by the ISPM-15 act. This regulation requires a packaging material with thickness of more than 6 mm, to be treated for transition between two countries. This regulation aims to prevent the spread of diseases and insects that could negatively affect plants or the environment.

According to  U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS), a particular standard has been set for packaging materials that include wood. Regulated woods must be treated and marked as fine quality. In North America, a bilateral agreement between the U.S. and Canada permits pallet transition between both the countries without compliance with ISPM-15, which is expected to increase trade flow between both the countries.

Food Safety Modernization Act increased FDA responsibility in terms of sanitization of pallets along-with inspection of food products. Regulations on the transportation of wooden packaging material are expected to increase the global demand for molded wood pallets, as their shipment does not require any post-treatment.

How Will Digitization Affect the Sales of Molded Wood Pallet?

Shipment efficiency and safe transportation play crucial roles in the supply chain. As far as the manufacturing point of view is concerned, secure packaging is imperative to enhance the quality of shipment.

Introduction of RFID tags for pallet tracking enables easy operations of safe monitoring systems and automatic inventory & warehouse management. The consumption of pallets is expected to increase in the upcoming years with the growing usage of RFID tags in the global pallets industry.

The electronics industry resulted in considerable changes in the packaging industry, thus, piquing manufacturers’ interest towards the use of RFID tags in pallets. Increase in the usage of packaging solutions, which provide convenience, as well as better efficiency than other pallets, is expected to fuel demand for molded wooden pallets.

How is Recycling of Old Pallets Impacting Molded Wood Pallets Manufacturers?

Molded wood pallets or press wood pallets are ISPM-15 compliant, which makes them better preferred over other pallets. Solid wooden pallets, when shipped, should fulfill the standards of National Wooden Pallet & Container Association ensuring safe transportation. The global demand for molded wooden pallets is expected to increase during the forecast period, owing to the characteristics of products in terms of reusability and recyclability.

As the pallets are recyclable, they can be made with other wooden pallet’s residue or by-products. This factor triggers an increment in consumption of molded pallets. In addition, wooden chips and residues are mixed with the help of adhesives or other chemicals to produce screw-less and edgeless pallets.

According to Interreg Europe, a European regional development fund, wood of amount 1,793,748 ton per year is recycled and out of that 62% of the recycled wood are of packaging industry. European government and association provide 22 million euro every year to co finance all the collection and recycling activities.

What is the Primary Trend Affecting Sales of Molded Wood Pallet?

In spite of the fact that molded wooden pallets provide efficient transport and storage space saving features, the change in temperature and scratches may impact the quality of the whole supply chain.

As a solution to this problem, manufacturers in the market have come up with pallet covers, which provide insulation along with high tensile strength and flexibility. Insulated pallet prevents UV rays, odor transfer, resist punctures. The insulated pallet covers act as an ultra-radiant barrier and also an insulating bubble layer.

During transportation, insulated pallet blankets provide protection to the entire container against extreme temperatures. Molded wood pallets can also be used with pallet covers, as wooden material is more prone to fire in case of very high temperatures.

What is the Impact of COVID-19 on the Molded Wood Pallets Market?

Since the outbreak of COVID-19 pandemic, there has been a major change in prices, availability of raw materials and supply chain activity. Pallet availability has become an even greater issue for the manufacturers to keep the supply chain running smoothly.

State mandated lockdowns caused downhill as productions were ceased. Even there was a decline caused in the growth of the building & construction as consumers became self-dependent and started rushing to buy materials for to-do-it-yourself projects.

These factors created a negative impact on the demand of molded wood pallets. But with the relaxations in the government rules there has been a slow growth in the GDP of the end users such as manufacturing industry, logistics & transportation, building & construction which anticipates an increase in sales of molded wood pallets.

Country-wise Insights

How is the Molded Wood Pallets Market Set to Fare in the Canada?

According to FMI research, the Canada market is forecast to expand at a rate of 6.4% during 2021-2031. It also is estimated to hold a market share of 31.1% in North America in 2021. In Canada, import of wood packaging materials is carried under strict guidelines to protect the Canadian ecosystems from non-native pests. To avoid all risks, domestic manufacturing of wood packaging is on the rise. The Canada market is projected to grow rapidly because of the increasing number of major key players and expansion of the product line in the country.

Why are Key Players Willing to Invest Million Dollars in India Market?

The market in India is growing steadily backed by the presence of numerous small scale companies and big scale companies who are ready to expand their reach across the globe. India is one of the fastest growing markets for logistics owing to expanding E-commerce facilities. Thus, the consumption of molded wood pallets in India is expected to increase at a promising growth rate of 7.4% CAGR, during the assessment years.

According to Indian logistics & supply chain association, the logistics industry in India will be driven by favorable initiatives such as “make it India” and expansion of e-commerce logistics. This will increase the potential for application of molded wood pallets in various sectors such as industrial, agricultural, warehousing, e-commerce shipment, building & construction and many others.

How is the Evolving Manufacturing Industry Aiding Sales in China?

Transformation across industries, specifically in the manufacturing sector, in China can be attributed to the country’s remarkable economic growth registered in the last few decades. The China market is estimated to hold a market share of 65.7% in East Asia and is estimated to have a year-on-year growth of 4.1% in 2021.

According to the World Bank national accounts data, China has a packaging manufacturing output of 3,853.8 Bn in 2020 which was estimated as 0.8% increase from 2019. Manufacturing industry that uses wood fiber are characterized as the most use of packaging as it accounts to 26% of the overall GDP of China.

Key players from some of the established pockets in Europe and North America are looking for better investment options to expand their global presence. This will help in the progression of the sales of molded wood pallets in China.

Why are Molded Wood Pallets Manufacturers Are Eyeing North Africa to Strengthen Their Position?

Molded wood pallets demand in Northern Africa is expected to rise at nearly 6.3% CAGR over the forecast period. Companies operating business to consumer market have significantly grown during the later stage of COVID-19 pandemic to help consumers purchase essential items. In response to this, logistics and transportation industry made key developments to cope up with the demand which in turn is anticipating to cover over 25.5% of the Middle East and African molded wood pallets market by the year 2031.

Category-wise Insights

What is the Size that is Most Commonly Preferred in a Molded Wood Pallets?

By size, full size pallets hold a dominant share of 73.8% in 2021 across the globe. Molded wood pallets irrespective of size provide much strength to hold any product of any weight. Despite the size, it is quite lightweight and takes up very little space in the warehouse. On the other hand, half size molded wood pallets are estimated to create an incremental opportunity of US$ 303.6 Mn by the next decade.

What are the Top Selling Molded Wood Pallets Product Type?

Nestable/Stackable pallet’s revenue totaled US$ 1.5 million in 2021 with a market share of 62.1% in 2021 and it forecasted to expand 1.7 times than its current market size by the year 2031.

As per the FMI analysis, the use of nestable/stackable pallet maximize the usage of space in warehouse and it is economical compared to the other product types. This type of pallet is preferred by manufacturers so that when pallets are not in use they can fit together in a perfect way avoiding any wastage of space.

Why Is the Logistics & Transportation Industry Gaining Traction?

Logistics & Transportation segment in the molded wood pallets market is anticipated to grow at a robust 6.2% CAGR over the forecast period.

According to the International Finance Corporation, logistic firms that majorly operate in storage, transit, and flow of goods have been negatively impacted during the onset of Covid-19 pandemic. Supply chains within domestic and international borders were disrupted due to the stringent government regulations.

But with slow relaxations in the regulations and the need to transport essential items, there has been a slow and steady growth in the logistics and transport industry, which is directly affecting the sales of molded wood pallets.

The logistics & transportation segment is forecast to register a gain of 210 bps of current value share, and expand 1.9 times its current market value, by 2031-year end.

Competitive Landscape

Companies operating in molded wood pallets market are aiming at strategic collaborations and strategic partnerships with other manufacturers to expand their product portfolio.

  • In 2020, Litco International Inc. committed in ensuring that all the molded wood pallets will be limited for reuse to avoid usage of damaged pallet in the safe transit of packaged products.
  • In 2020, Acorn pulp group signed up a deal with Southern Moulded Pulp and Moulded Fibre Technologies to buy their art molded fiber manufacturing machine that ensures smooth production of the molded wood pallets.

Scope of the Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2014-2020

Market Analysis

USD Million for Value and Units for Volume

Key Regions Covered

North America, Latin America, Europe, Asia Pacific, Middle East & Africa, and Oceania

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, China, Poland, India, Russia, Brazil, Mexico, Australia, GCC Countries, Northern Africa.

Key Segments Covered

Product Type, Size, End Use, Region

Key Companies Profiled

  • Litco International Inc,
  • Millwood, Inc,
  • Snyder Industries, Inc,
  • Custom Equipment Company Inc,
  • The Nelson Company,
  • Beacon Industries Ltd,
  • NKA Paletten GmbH,
  • Brambles Ltd,
  • Engelvin Bois Moule S.A,
  • Nefab Group,
  • Presswood International BV,
  • ENNO Marketing Pvt Ltd,
  • CABKA Group GmbH,
  • Schoeller allibert services b.v,
  • Loscam Australia pty ltd,
  • Craemer GmbH,
  • Kronus Group,
  • Linyi Kunpeng Wood Co., Ltd,
  • JP Pallets,
  • Taik Sin Timber Industry Sdn Bhd

Report Coverage

Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Highlights from Report

  • What is the Current Valuation of Molded Wood Pallets Market?

    The current valuation of the molded wood pallets market in 2021 is estimated to be US$ 2.6 billion.

  • Which Is the Most Lucrative Market for Molded Wood Pallets?

    Europe currently leads the global market for molded wood pallets. Sales of molded wood pallets in North America, Europe and East Asia together account for more than 74% of the global sales throughout the forecast period.

  • Which Is the Top-Selling Molded Wood Pallets by Size?

    In terms of size, full size pallets are expected to outpace other segments and estimated to reach nearly US$ 3.4 billion, by 2031.

  • Why are Molded Wood Pellets Preferred across Diverse Industries?

    Continuous improvement in the manufacturing of packaging solutions is intended to meet the customer demand for improved packaging and stringent government policies. The expansion of the logistics & transportation industry across the globe is fueling the demand for molded wood pallets.

  • Which Are Some of the Leading Companies Offering Molded Wood Pallets?

    Some of the leading companies offering report Litco International Inc, Millwood, Inc, Snyder Industries, Inc, Custom Equipment Company Inc, The Nelson Company, Beacon Industries Ltd, INKA Paletten GmbH, Brambles Ltd, Engelvin Bois Moule S.A, Nefab Group and among others. These players are estimated to hold nearly 20% to 30% share in the global molded wood pallets industry.

  • Which Product Type Is Accountable for Driving Sales of Molded Wood Pallets?

    Nestable/Stackable pallet is the most lucrative segment and is expected to outbid others during the forecast period. The consumption of the target segment is estimated to reach 451 thousand Units, by 2031.

  • What are the Key Factors Driving Molded Wood Pallets Sales?

    The key factors driving the industry are lightweight and cost-effectiveness of molded wood pallets. Also, the ISPM-15 exemption for molded wood pallets to increase international trade acts as a boosting factor in increasing the growth of the industry.

  • What Are the Key Trends Prevailing in the Molded Wood Pallets Market?

    Introduction of insulated pallet covers that provide insulation together with needed strength and flexibility has resulted into growing demand for molded wood pallets. Also, there is efficient improvement through digitization in pallets during pandemic.

Molded Wood Pallets Market by Category

By Product Type:

  • Nestable/Stackable
  • Rackable Pallets

By Size:

  • Quarter Size Pallet
  • Half-size Pallet
  • Full-size Pallet

By End Use:

  • Manufacturing
    • Food & Beverages
    • Chemicals
    • Automotive
    • Pharmaceuticals
    • Others
  • Logistics & Transportation
  • Building & Construction

By Region:

  • North America
  • Latin America
  • Europe
  • South Asia
  • East Asia
  • Oceania
  • Middle East and Africa (MEA)

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