Molded Wood Pallets - Sustainable & More

Innovation in Molded Wood Pallets Market to Gather Pace, as ‘Pallet Polling Programs’ Thrive in End-use Industries

  • 2019-07-18
  • REP-GB-6215
  • 41 Tables
  • 95 Figures
  • 226 pages
  • Format: PDF/PPT/Excel

  • US$5,000
  • US$7,500
  • US$10,000

Molded Wood Pallets - A Stepping Stone to Sustainable Logistics

Although a wide range of factors continue to influence the modern logistics supply chain, a number of components, machines, and systems that make up the holistic chain still lack optimal efficiency and environmental regulation compliance. As stakeholders explore alternative solutions, pallet manufacturers are turning to sustainable process to convert wood waste, damaged logs, and even agriculture residues into molded wood pallets. Their efforts have been complemented and encouraged by a cross-industry emphasis on recycling and sustainability. 

The pallet industry has been a stakeholder, and a collaborator, in the broader concerted efforts to streamline and strengthen product shipments. Over the years, a slew of developments, regulations, and challenges have impacted the industry uniquely. Future Market Insights (FMI), in its new study, examines these factors in detail, offering a lucid analysis of a market that can create sustained opportunities for the stakeholders.   

molded wood pallet snapshot

Molded Wood Pallets Market – Key Research Findings

  1. The global molded wood pallets market size in 2018 was approximately US$ 2 Bn.
  2. The molded wood pallets market is projected to grow at approx. 3%, during the next ten years.
  3. The ISPM-15 safety measure regarding wooden pallets, which requires hardwood pallets to be heat treated, is expected to boost the molded wood pallets market growth. Molded wood pallets are heat treated and in compliance with the measure.
  4. The molded wood pallets market is dominated by the usage of full size pallets as they are an appropriate choice for industrial packaging as well suitable for retail displays.
  5. Europe and Asia Pacific are expected to remain leading regions in terms of market value share, cumulatively accounting for more than half of the global molded wood pallet share.
  6. In the United States, full size pallets are preferred as compared to quarter size pallets and half size pallets.
  7. Manufacturers in the pallets market are shifting towards providing sustainable and convenient products.
molded wood pallet market full size pallet

Key Factors Shaping the Global Molded Wood Pallets Market

Manufacturers’ Preference: ISPM-15 Exempted Molded Wood Pallets

ISPM-15 is a measure for packaging of wooden materials of thickness greater than 6mm, for shipment between two countries. The measure is developed by International Plant Protection Convention (IPPC) to prevent the spread of diseases and insects that could negatively affect the ecosystem. More than 85 countries have adopted the measure, which states that wooden pallets should be heat treated at a certain temperature and pressure. Molded wood pallets are compliant with the ISPM-15 measure and consequently don’t require post-heat treatment.

Increment in Export/Import to boost the Molded Wood Pallets Market Growth

To enhance the quality of shipment and provide optimum packaging to the consumer, manufacturers use compact pallets. Decrement in transportation cost, as well as reduction in storage & warehousing space creates demand for molded wood pallets.

Key market trends imply that the global pallet market is driven by the demand for cost-effective and convenient packaging solutions. Manufacturers and distributors in the molded wood pallets market are focusing on cost-effective logistic products as well as improvisation in production capabilities.

Market Inclination towards Recycled Product Manufacturing

Molded wood pallets are 35% lighter than conventional hardwood pallets, and are durable enough for reuse, which increases their preference over other wood pallets. Convenient manufacturing process, less material sourcing requirement, and sanitization during manufacturing makes them cost-effective. Apart from cost-effectiveness and lightweight of molded wood pallets, utilization of recycled material is the driving factor for manufacturers in the pallets industry.

  • Flexibility in Choosing Raw Material: The raw materials used for making molded wood pallets are hardwood & softwood chips, bamboo shavings, wooden residues, agricultural residues, and wheat straws, among other forms of wooden particles. Manufacturers also use old wooden pallets and recover them in the form of molded wood pallets.
  • Cost-reduction through Software Analysis: Litco International Inc. uses software analysis for cost & storage space saving, which enables manufacturers to maximize transportation of pallets.

Introduction of Insulated Pallet Covers

Manufacturers in the market came up with pallet covers that provide insulation together with required strength and flexibility. Insulated pallet covers resist punctures, block light, prevent UV and odor transfer, act as an ultra-radiant barrier, as well as an insulating bubble layer. Introduction of insulated pallet covers is expected to trigger the molded wood pallets market growth in the upcoming years.

Unravelling the Growth of the Molded Wood Pallets Market

Nestable molded wood pallets are easy to handle and require less storage space as compared to other pallets, be it plastic or wooden pallets. The demand for nestable pallets is more in logistics & transportation industry as compared to other end-use industries. The molded wood pallets market is expected to expand at a moderate growth rate during the forecast period.

Increment in Trade among Emerging Regions is expected to Increase Consumption

The European region is expected to account for a major market share in the global molded wood pallets market. The developing countries in South & East Asia will lead in terms of growth rate and incremental opportunity during the forecast period. Emerging countries such as India and China, are expected to represent higher incremental opportunities in their respective regions.

Molded Wood Pallets Market Structure Analysis

  • Manufacturers in the molded wood pallets market maintain their strategic focus on providing pallets with high strength, along with the utilization of wooden residue.
  • Diversification in the product portfolio according to size and product type is a key strategy for manufacturers to expand their business operations in the molded wood pallets market.
  • Key tier 1 players in the molded wood pallets market include Litco International Inc. and INKA Paletten GmbH.
  • North America and Europe are estimated to account for noticeable consumption of sustainable products during the forecast period.

Molded Wood Pallets Market – Preference for Compact and Sustainable Drives Demand

Pallets have evolved over time and use, and a wave of ‘going green’ has been impacting the industry in recent years. Subsequently, engineered wood pallets have garnered significant traction as a viable alternative to conventional pallets in terms of weight, cost-effectiveness, compactness, and sustainability. In addition to taking up one-third of the space of wooden pallets, molded wood pallets are compliant with ISPM-15 and do not require extensive heat treatments, thereby paving the way for increased adoption in international trade activities. As industries as well as consumers continue to shift their focus towards bio-based products, molded wood pallets market is likely to witness a steady growth in the future.

Big gains in manufacturing and warehousing activities along with rapid replacement of worn pallets with newer units are expected to provide growth prospects to market players. However, it is imperative to note that, the emerging trends of pallet pooling programs to reduce wasted material and the cost of continually procuring new pallets can stymie the degree of opportunities. Consequently, to align with the evolving trends, manufacturers are directing their investments in improving the product properties relative to reusability and recyclability.

Asia Pacific’s Thriving Warehouse Industry: Opportunities Abound

Manufactured according to a guaranteed pest-free process, molded wood pallets are suitable for worldwide exportation, as they are exempt from ISPM 15/NIMF 15, colloquially known as the “wheat stamp.” While Europe market for molded wood pallets continues to account for greater share with strong presence of key stakeholders, market consolidation in Asia Pacific is expected to offer distinct lucrative opportunities. Considering the warehousing industry in the region, which has been visibly growing in recent years, molded wood pallet manufacturers are likely to instate new production plants in developing countries. Availability of higher resources and affordable workforce in the region will further lead to realignment of these strategies.

Trends Influencing the Molded Wood Pallets Market

As most industries are taking a closer look at improving their sustainability practices, pallet manufacturing and distribution have come under increased scrutiny. With flexibility of choosing raw materials that are about 97% recyclable and plant-based, molded wood pallets have captured significant attention from a wide range of end-use industries. However, these pallets can’t be repaired, and are ideal for just one-way shipping. Manufacturers are thus continuously working on enhancing their reusability and for the advancement of the concept of circular economy. These factors further intensified when Litco International, Inc.’s molded wood pallets achieved ‘Cradle to Cradle’ recertification in 2018, signifying improvement in all five quality attributes and overall environmental impact.

Considering the nature of product, high levels of heat or cold can become a real issue during the shipping process of various products, especially pharmaceuticals. Therefore, molded wood pallet manufacturers are introducing insulated pallet covers to improve the viability and quality of whole supply chain. While many standard models meet most packaging and shipping needs, a number of manufacturers are offering a molded wood pallets in range of sizes to fit many applications. Aligning with overall supply chain strategy also remains key focus area of the manufacturers to make new strategic moves.

Full-sized pallets remain top-selling category

Adoption of Half-sized pallets increases

Nestable pallets sales grow significantly

Rackable pallets to witness high adoption

Logistics & transportation remains top end user

Use in manufacturing sector increases rapidly

How Growth will Unfold

Ensuring that products loaded onto the base remain free from damage, molded wood pallets have become a pallet of choice in number of end-use industries. As use of conventional pallets contributes to environmental degradation, the focus has shifted to adopting recyclable raw materials and manufacturing without the use of screws and nails. Implementation of regulatory norms on sustainability and recyclability, which was once an afterthought, are expected to gain prominence in the coming years. Therefore, molded wood pallet manufacturers should be looking at a period of sustained demand.

While constant developments in logistics & transportation continues to significantly impact manufacturers’ bottom lines, they are tapping into potential opportunities in rapidly expanding building & construction and F&B manufacturing sectors. In the view e-commerce penetration and increasing online populace, market players are working on building effective distribution strategies. In addition to launching new websites and mobile apps to facilitate the online purchase, manufacturers are incorporating new response mechanisms and allowing buyers to pre-order bulk and truckload quantities of products.

 Molded Wood Pallets Market

* This data is only a representation. Actual data may vary and will be available in report.

Click Here To Know How The Growth Will Unfold

Custom Market Research Services

FMI offers custom market research services that help clients to get information on their business scenario required where syndicated solutions are not enough.


Molded Wood Pallets – Sustainable & More

A recent market study published by FMI on the molded wood pallets market includes global industry analysis 2014-2018 & opportunity assessment 2019-2029, and delivers a comprehensive assessment of the most important market dynamics. After conducting thorough research on the historical as well as current growth parameters of the molded wood pallets market, the growth prospects of the market are obtained with maximum precision.

Molded Wood Pallets Market Taxonomy

The global molded wood pallets market is segmented in detail to cover every aspect of the market and present complete market intelligence to the reader.

By Product

  • Nestable/Stackable Pallets
  • Rackable Pallets

By Size

  • Quarter Size Pallets
  • Half Size Pallets
  • Full Size Pallets

By End Use

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

By Region

  • North America
  • Latin America
  • Europe
  • South Asia
  • East Asia
  • Oceania
  • MEA

What's Included

The report commences with the executive summary of the molded wood pallets market, which includes a summary of the key findings and statistics of the market. It also includes dominating segments in the global molded wood pallets market, along with key facts about wooden molded wood pallets. It also includes graphical representation of the segments according to the market size and growth rate.

Readers can find the detailed taxonomy and the definition of the molded wood pallets market in this chapter, which will help them understand the basic information about the molded wood pallets present in the market. This section also highlights the inclusions and exclusions, which help the readers understand the scope of the molded wood pallets market report.

The report provides key market trends that are expected to impact market growth significantly in the upcoming years. The section also includes the product development trends in the molded wood pallets market.

This section includes the key factors affecting the market in negatively or positively, regulations related to pallet usage. The section also includes product adoption analysis and pallet pooling system across the world, along with TAM, SAM, and SOM Analysis.

This section explains the global market value & volume analysis and forecast for the molded wood pallets market in the forecast period 2014-2029. This chapter includes the detailed analysis of the historical molded wood pallets market, along with an opportunity analysis of the future. Readers can also find the absolute opportunity for the current year (2019 – 2020), and an incremental opportunity for the forecast period (2019 – 2029).

This section highlights the average pricing analysis of quarter size, half size, and full size molded wood pallets in different regions throughout the globe. The weighted average for manufacturer-level pricing is analyzed in this section.

This chapter explains the key macro-economic factors that are expected to influence the growth of the molded wood pallets market over the forecast period. Along with macroeconomic factors, this section also highlights the opportunity analysis for the molded wood pallets market. This chapter also highlights the key market dynamics of the molded wood pallets market, which include the drivers and restraints. Moreover, readers will understand the key trends followed by the leading manufacturers in the molded wood pallets market. This section also covers the Porter’s Analysis as well as the PESTLE analysis for the global molded wood pallets market.

Based on product type, the molded wood pallets market is segmented into nestable/stackable and rackable pallets. In this chapter, readers can find information about key attractive segments during the forecast period.

Based on molded wood pallets size, the molded wood pallets market is segmented into quarter size pallet, half size pallet, and full size pallets. In this chapter, readers can find information about key attractive segments during the forecast period.

This chapter provides details about the molded wood pallets market on the basis of end use, and has been classified into manufacturing & warehousing, logistics & transportation, and building & construction. The manufacturing & warehousing segment is further divided into sub-categories.

This chapter explains how the molded wood pallets market is expected to grow across various geographic regions, such as North America, Latin America, Europe, South Asia, East Asia, Oceania, and Middle East & Africa (MEA).

This chapter includes a detailed analysis of the growth of the North America molded wood pallets market, along with a country-wise assessment that includes the U.S. and Canada. Readers will also find some of the key points on the basis of estimated market size and consumption of molded wood pallets.

Readers can find detailed information about several factors, such as the pricing analysis and the regional trends, which are impacting the growth of the Latin America molded wood pallets market. This chapter also includes the growth prospects of the molded wood pallets market in the leading LATAM countries such as Brazil, Mexico, Argentina, and the Rest of Latin America.

Important growth prospects of the molded wood pallets market based on the product, size, and end user industry in several countries, such as Germany, the UK, France, Spain, Italy, BENELUX, Russia, and the Rest of Europe, are included in this chapter.

India, Indonesia, Thailand, and Malaysia are the leading countries in the South Asia region that are the prime subjects of assessment to obtain the growth prospects of the South Asia molded wood pallets market in this chapter. Readers can find detailed information about the growth parameters of the South Asia molded wood pallets market during the period 2019-2029.

This chapter highlights the growth of the molded wood pallets market in East Asia by focusing on China, Japan, and South Korea. The section also highlights data points regarding the growth of the molded wood pallets market in the East Asian region.

Australia and New Zealand are among the leading countries in the Oceania region, which are the prime subjects of assessment to obtain the growth prospects of the Oceania molded wood pallets market, in this chapter.

This chapter provides information about how the molded wood pallets market will grow in major countries in the MEA region, such as GCC Countries, South Africa, Turkey, Northern Africa, and the rest of MEA, during the forecast period 2019 - 2029.

In this chapter, readers can find detailed information about the tier analysis and market concentration of the key players in the molded wood pallets market along with their market presence analysis by region and product portfolio.

This chapter includes a list of acronyms and assumptions that provide a base to the information and statistics included in the molded wood pallets report.

This chapter helps readers understand the research methodology followed to obtain various conclusions as well as important qualitative and quantitative information about the molded wood pallets market.

How the research was conducted?

Primary Research

  • C - Level Executives
  • Marketing Directors
  • Product Managers 
  • Business Development Officers 
  • Production Managers
  • Procurement Heads
  • Sales Executives
  • Distributors
  • Traders 
  • Raw Material Suppliers
  • Industry Experts
  • End Users
  • Current Market Dynamics and Challenges
  • Yesteryear Trends 
  • Market Characteristics
  • Market Performance and Growth Quadrants
  • Competition Structure and Market Structure
  • Strategic Growth Initiatives
  • Near-term and Long-term Market Growth Prospects
  • Market Segment Splits and Authenticity
  • Opinions on Market Projections and Validity of Assumptions

Secondary Research

  • Industry Publications
    • World of Chemicals
    • Chemical Weekly
    • Chemical Engineering World, etc.
  • Industry Associations
    • National Wooden Pallet & Container Association 
  • Factiva
  • Company Press Releases
  • Annual Reports and Investor Presentations
  • Research Papers
  • Government Websites and Publications
  • Trade Websites

Primary Interview Splits

Primary Interview Splits molded wood pallet market split by designations

Primary Interview Splits molded wood pallet market split by stakeholders

To Learn More About our Comprehensive Perspective on Molded Wood Pallets Market,

Get in touch

Harish Tiwari

Global Head - Business Development

Akshay Godge

Client Partner - Global Business Development

COVID -19 : Impact Analysis

Request the coronavirus impact analysis across industries and markets

Request Covid -19 Impact

Our Clients


See how our work makes an impact.

At FMI, we design strategies that are adaptive, impactful, and implementable.

Request Sample Ask An Analyst Request Methodology