by Wood pallets are portable platforms used for storing and moving materials and products in logistics and warehousing applications. Wood pallets help in securely stacking goods and materials for shipment, storage, and transportation. They provide efficiency in material handling while reducing damage and product loss. Wood pallets are extensively used for shipment of goods across industries such as food and beverages, pharmaceuticals, chemicals, electronics, and e-commerce. With the growth of e-commerce industry, requirement for safe and effective logistics is rising significantly. E-commerce industry heavily relies on wood pallets for shipping products to customers.
The global wood pallets market is estimated to be valued at US$ 131 billion in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023-2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The increasing demand from e-commerce industry is a key driver contributing to the growth of wood pallets market. With the rising adoption of online shopping among consumers globally, e-commerce sales are experiencing substantial growth. According to India Brand Equity Foundation (IBEF), the Indian e-commerce market is expected to reach US$ 111.40 billion by 2025 from US$ 38.5 billion in 2017. Increasing e-commerce sales will boost the requirement for wood pallets for safe and organized packaging and shipment of products.
Another driver fueling the wood pallets market expansion is rapid growth of logistics industry. Logistic companies widely utilize wood pallets for transportation and warehousing of goods. Rising international trades and growing cargo traffic are augmenting logistic activities worldwide, thereby driving the demand for wood pallets in material handling applications.
Segment Analysis
The global wood pallets market is segmented into material type, application, and region. Based on material type, the market is segmented into hardwood and softwood. The softwood segment is dominating the market owing to its low cost and easy availability as compared to hardwood. Softwood raw materials such as pine, spruce and fir are widely used for manufacturing pallets.
PEST Analysis
Political: The wood pallets market is influenced by government regulations around deforestation and sustainability. Many nations have enforced regulations to promote use of recycled wood pallets.
Economic: Changes in global trade dynamics positively impact the demand for wood pallets for transportation and warehousing. The pandemic-driven surge in e-commerce boosted pallet demand from logistics companies.
Social: Rising awareness about environmental protection and sustainable material usage influence consumers and industries to use recycled wood pallets.
Technological: Advances in pallet pooling services facilitate easy sharing and return of pallets within supply chains. RFID and GPS tracking technologies help optimize pallet utilization.
Key Takeaways
Global Wood Pallets Market Size is expected to witness high growth.
Regional analysis comprises the North American region dominates the wood pallets market led by the USA. The region has a well-established pallet manufacturing industry and demands pallets for internal transportation and warehousing.
Key players operating in the wood pallets market are CHEP, PalletOne, John Rock, Millwood, United Pallet Services, and PECO Pallet. Key players focus on recycled pallet production to meet sustainability targets within supply chains of various end-use industries, including food and beverage, pharmaceuticals, chemicals and petrochemicals.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
