by Wood pallets are reusable platforms used for handling, storing, and transporting materials, goods and products in the warehouse as well as during transportation from production site to end users. Wood pallets provide strength, durability and remain non-corrodible as compared to other materials. They help reduce damage and breakage of transported goods. With efficient utilization and handling practices, the lifetime of a wooden pallet can extend up to 5-10 years, thus reducing replacement cost. Furthermore, availability of standardized sizes and designs makes them an universal mean of transport for most industries.
The global wood pallets market is estimated to be valued at US$ 26 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 key trends:
One of the major trends witnessed in the global wood pallets market over the past few years has been growing demand from transportation and logistics sector. Wood pallets are strongly preferred for transportation of industrial goods such as manufactured parts, food items, chemicals, electronics etc. durability and load bearing capacity of wooden pallets makes them ideal for transportation through various modes such as road, rail, ocean and air. As international trade volume witnesses steady rise coupled with expansion of e-commerce industry, demand from logistics sector is expected to remain high during forecast period. Furthermore, availability of reusable and recyclable wooden pallets aligns well with sustainability objectives of global supply chains, thus further promoting preference over alternative materials. Growing international trade is estimated to remain a key demand driver for wood pallets through 2031.
Porter’s Analysis
Threat of new entrants: Low capital requirement for manufacturing wood pallets poses moderate threat of new entrants. However, established players enjoy economies of scale.
Bargaining power of buyers: Large buyers such as food processing and chemical industries enjoy high bargaining power due to bulk purchase volume.
Bargaining power of suppliers: Wood as raw material has numerous suppliers globally, thereby exerting low bargaining power.
Threat of new substitutes: Plastic pallets pose potential substitution threat, though wooden pallets are preferred for their strength, moisture resistance and recyclability.
Competitive rivalry: Intense competition exists among major players to strengthen global distribution network and supply contracts with multinational companies.
Key Takeaways
The Global Wood Pallets Market Size is expected to witness high growth. Wood pallets find extensive application in shipping a wide variety of goods across industries such as food and beverage, chemicals and pharmaceuticals.
Regional analysis:
North America dominates the wood pallets market currently. High demand from retail and consumer goods sectors in the US and Canada boosts the regional market. Meanwhile, Asia Pacific is expected to depict the fastest growth led by rising manufacturing and international trade in China, India and other developing economies.
Key players:
Key players operating in the wood pallets market are Brambles Ltd, Schoeller Allibert Services B.V., DS Smith Plc, Falkenhahn AG, Cabka Group GmbH, Pallite Ltd., and CHEP Australia.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
