As per a new study by Future Market Insights (FMI), moulded wood pallets sales will increase at 5.8 percent CAGR between 2021 and 2031, enabling overall valuation to surpass $4.5 billion by the end of the assessment period.
These pallets are made by moulding wood waste, wood by-products, and damaged logs, which have decreased their cost of manufacturing. Also, they require less energy than the manufacturing of other pallet types. These factors are expected to increase the demand for moulded wood pallets.
The global demand for moulded wood pallets is expected to increase owing to an increment in the growth of sustainable and cost-effective products. Moulding process wood chips, particles, and other residues all increase the strength of pallets. They do not contain screws or cutting edges, which makes these pallets suitable for any type of product.
Convenient manufacturing process, less material sourcing requirement, and sanitisation during manufacturing make moulded wood pallets cost-effective, as well as lighter when compared to wooden pallets.
- The demand for nestable/stackable pallets in the packaging industry has increased exponentially in recent years. This growth can be attributed to the increasing shipments overseas. This segment is expected to create incremental opportunity of $1,084.5 million in the coming decade.
- Moulded wood pallets of full size are gaining traction among end users. This segment is forecast to increase by 240 bps of current market share and reach up to 76.3 percent in 2031.
- Increasing logistics and transportation have fuelled the demand in the packaging industry. This segment is forecast to expand 1.9 times the current market share during the forecasted period.
- Across the global market, consumption of moulded wood pallets is expected to remain high in the European and North American countries due to the presence of key players and the availability of technologically advanced and innovative packaging solutions.
- Demand in the East Asian countries is also increasing at a rapid pace on account of the expansion of the manufacturing sector.
The COVID-19 pandemic has impacted various business environments. Social distancing and workplace shutdowns created new challenges to the business world, which continues to adapt to the current challenges and operate in the post-Covid situation. Moulded wood pallets play a crucial supporting role in the smooth running of the supply chain.
According to Litco International, despite decelerating activities across various industries, the demand for pallets continued to rise on account of increasing logistic shipments.
With social distancing and hygienic workplace rules, the demand for sanitised workplaces has increased. Moulded wood pallets are gaining traction due to the said conditions which allow retailers to have minimum contact with the product by directly loading it into the pallet.
Litco International, Millwood, Snyder Industries and Nefab Group, amongst others are the prominent players in the global moulded wood pallets market.
The tier three players in the market hold 70-80 percent in the global moulded wood pallets market. In conclusion, key players contribute almost 20-30 percent of the global demand.