Wood Pallets Market to Witness High Growth Owing to Rising Construction and Industrial Production Activities
Wood pallets are flat panel structures used extensively for storing and transporting goods in the industrial, wholesale and logistics sectors. Used materials include wood, plastic, metal and corrugated paper. Wood versions have advantages including strength, sturdiness and easy availability driving their continued widespread adoption. Products carried on wood pallets range from raw materials, components to finished goods across industries like food & beverage processing, pharmaceuticals, chemicals, electronics and construction materials.
The global wood pallets market is estimated to be valued at US$ 45 Bn in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023-2033, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The wood pallets market is expected to witness high growth owing to rising construction and industrial production activities. Construction sector growth stimulates demand for wood pallets to transport cement, steel, tiles and other building materials. Expanding manufacturing base particularly in Asia Pacific and Middle East & Africa also drives pallet requirements for shipping intermediate and final goods within and outside regions. Rising international trade volumes augment inter-country and inter-continental transportation needs which wood pallets fulfil efficiently. Further, rapid growth of e-commerce has boosted pallet pool requirements for order fulfillment and delivery logistics. Growing cold chain infrastructure for temperature-sensitive pharmaceuticals and foods increases specialized wood pallet adoption.
SWOT Analysis
Strength: Wood pallets are cost effective and durable for handling heavy loads during transportation and storage. They are structurally sturdier than other alternatives. Wood pallets can withstand loads up to 2,200 pounds during shipping and storage and can be repaired easily if damaged.
Weakness: Wood pallets have a higher chance of breakage compared to plastic pallets. They also require more maintenance and repairs compared to other alternatives. Since they are made from natural materials, wood pallets are susceptible to weather damage if exposed to moisture or sun.
Opportunity: There is growing demand for sustainable and recyclable packaging materials from industries. Wood pallets can be reused and recycled multiple times reducing waste. The e-commerce boom has increased the demand for efficient logistics and transport packaging solutions like wood pallets.
Threats: Stringent government regulations regarding the usage of raw wood to curb the spread of pests and diseases poses compliance challenges. Growing popularity of plastic, metal, and corrugated pallets pose replacement threat to traditional wood pallets.
Key Takeaways
Global Wood Pallets Market Size is expected to witness high growth.
The market in North America is the largest with the U.S. being the dominant player. Stringent regulations in the U.S. and Canada ensure wood pallets meet safety, quality and recyclability standards. The Asia Pacific market is experiencing fastest growth with China emerging as a major manufacturing hub.
Key players operating in the wood pallets market are Falkenhahn AG, PalletOne, Schoeller Allibert Services B.V., Craemer Holding GmbH, Cabka Group GmbH, LOSCAM, Rehrig Pacific, Edwards Timber Company Inc, Shinohara Inc, and The Nelson Company.
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