July 21, 2024
Pallet Market

Composite Wooden Pallet Market Surging Demand for International Trade of Machinery and Equipment

The composite wooden pallet market is estimated to be valued at US$ 57.0 Bn in 2022 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Composite wooden pallets are commonly used in the transportation and logistics industry for shipping heavy materials over long distances. They are made from multiple wooden slats and blocks that are typically compressed and held together without metal fasteners. This makes them durable enough to withstand heavy weights but also inexpensive and lightweight compared to metal pallets. They are extensively used for inter-company and international shipments of machinery, electronic goods and bulk commodities. Many manufacturing and ecommerce companies rely on composite wooden pallets to efficiently store and transport inventory and products.

Market Dynamics:
Growing international trade volumes, particularly between Asia, North America and Europe is a key driver boosting demand for composite wooden pallets. As globalization increases cross-border shipments of manufactured goods, consumer products and industrial machinery, the need for affordable and re-usable packaging solutions like pallets has also risen significantly. Additionally, the surge in e-commerce activities along with rising omnichannel retailing is prompting companies to frequently transport goods from warehouses to distribution centers. This has further accelerated pallet procurement over the forecast period.

The expansion of the automotive, pharmaceutical and food processing industries across emerging nations has also amplified pallet utilization for transportation of machinery, raw materials and finished products. Rapid industrialization and the “China plus one” strategy of diversifying manufacturing footprints are augmenting pallet demands. Growing multi-modal transportation solutions that use intermodal containers, trucks and ships is another driver that is expected to propel market growth over the next few years.

Segment Analysis
The global pallet market is dominated by wooden pallets which accounted for over 60% of the market share in 2022. Wooden pallets are preferred for their high durability and load bearing capacity. They can withstand heavy weights and rough handling during transportation. Though wooden pallets have higher initial costs, their reuse and repair cycle allows lower overall costs for users over time.

PEST Analysis
Political: Fluctuations in timber and wood prices due to changes in environmental policies can impact the production and costs of wooden pallets.
Economic: The growth of e-commerce and food & beverage industries is driving the demand for pallets globally, supporting the growth of the pallet market.
Social: Users are becoming increasingly environmentally conscious and prefer sustainable pallet solutions that can be recycled or reused.
Technological: Innovations in pallet materials allow for development of more durable plastic and corrugated pallets that provide alternatives to wooden pallets.

Key Takeaways
The global Pallet Market Share is expected to witness high growth, exhibiting CAGR of 5.9% over the forecast period 2023-2030, due to increasing investments by e-commerce companies and growth of cold chain logistics. The market size is projected to reach US$ 57.0 Billion in 2022.

Regional analysis indicates North America is expected to dominate the pallet market, accounting for over 35% share due to strong presence of pallet manufacturers and users in US and Canada. Asia Pacific is identified as the fastest growing region owing to industrialization and developments in cold chain infrastructure in major economies like China and India.

Key players operating in the pallet market are Brambles Limited, LOSCAM, Rehrig Pacific Company, CABKA Group, PECO Pallet Inc, The Corrugated Pallet Company, Falkenhahn AG, Millwood Incorporation, Litco International Inc, and Schoeller Allibert. The market is highly competitive with these players focusing on sustainable pallet solutions and automation technologies to gain market share.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it