Molded wood pallets are expected to grow at a quick rate in 2021, with global revenues rising by 3.4 percent year over year. Molded wood pallet revenues are expected to nearly double between 2021 and 2031, reaching roughly US$ 4.5 billion in 2031, according to a recent FMI prediction, with a ten-year compound annual growth rate (CAGR) of 5.8%.
Molded wood pallet consumption in Canada is predicted to increase by 5.1 percent year over year in 2021, with total sales of US$ 183.2 million.
Molded wood pallets are thoroughly cleaned during molding and meet the most stringent phytosanitary export regulations, such as ISPM-15. The study suggests that leveraging these companies will help Molded wood pallet makers because food and pharmaceutical companies are worried about adopting contaminant-free pallets.
One of the main development drivers is manufacturers’ efforts to use a significant part of wood waste as raw materials that would otherwise end up in landfills. Furthermore, implementing ecologically responsible manufacturing techniques that utilize fewer energy aids many industries in achieving their sustainability objectives. Molded wood pallets, on the other hand, are only meant for one user and cannot be repaired. As a result, manufacturers are looking into possible techniques to assist avoid landfills when products have outlived their usefulness.
Although full-sized Molded wood pallets continue to sell well, accounting for more than 60% of market revenue, producers are striving to enhance half-sized pallet production, which improves efficiency and reduces costs for shippers of smaller loads. According to the study, small firms will benefit from half-sized pallets because utilizing recycled full-sized pallets adds more space and weight to their pallets than is necessary. Furthermore, half-sized, nestable Molded wood pallets are predicted to account for a large share of future profits for market players.
According to the poll, market participants in the logistics and transportation business have a multitude of prospects as a result of increased industrial activity and the rapid expansion of trade agreements with other countries. Given recent advancements in the manufacturing and construction industries, manufacturers are likely to explore further possibilities, with sustainability at the forefront of their considerations. Keeping up with shifting end-user trends and regulatory changes continues to be a top focus for manufacturers.
According to the research, the EU5 market for molded wood pallets offers significant growth potential. A greater concentration of players in the region is emerging as a strategic move, as are their efforts to increase sales and distribution via online platforms.
Furthermore, owing to recent huge investments in industrial sectors, which have primarily promoted pallet adoption, the Asia Pacific, particularly the eastern region, is projected to offer greater incremental changes.