In 2021, the Molded wood pallets market is predicted to increase at a rapid pace, with global revenues increasing by 3.4 percent year over year. According to a new FMI forecast, revenues from Molded wood pallets would nearly double between 2021 and 2031, reaching approximately US$ 4.5 billion in 2031, with a ten-year compound annual growth rate (CAGR) of 5.8%.
In 2021, demand for Molded wood pallets in Canada is expected to grow by roughly 5.1 percent year over year, with total sales valued at US$ 183.2 million.
Molded wood pallets are cleaned throughout the molding process and comply with the most strict phytosanitary rules for export, such as ISPM-15. Because food and pharmaceutical firms are concerned about using contaminant-free pallets, the study indicates that leveraging these companies will benefit Molded wood pallet manufacturers.
Manufacturers’ efforts to utilize a considerable proportion of wood waste as raw materials that would otherwise wind up in landfills are one of the primary development drivers. Furthermore, adopting environmentally responsible manufacturing processes that use less energy helps many sectors move closer to their sustainability goals. Molded wood pallets, on the other hand, are only intended for a single user and are not repairable. As a result, manufacturers are paying attention to potential techniques to help prevent landfills when things have outlived their usefulness.
Although full-sized Molded wood pallets continue to sell well, accounting for over 60% of market revenue, manufacturers are aiming to increase the production of half-sized pallets, which improves efficiency and saves costs for shippers of smaller loads. Small-scale businesses will gain from half-sized pallets, according to the study, because using recycled full-sized pallets loads them with more pallet space and weight than is necessary. Furthermore, half-sized, nestable Molded wood pallets are expected to account for a significant portion of market players’ profits in the future.
According to the survey, market stakeholders in the logistics and transportation industry have a plethora of opportunities due to rising industrial activity and the rapid expansion of trade agreements among various countries. Manufacturers are likely to explore additional options, with sustainability at the forefront of garnering attention, given recent improvements in the manufacturing and building industries. Manufacturers continue to place a high priority on keeping up with changing end-user trends and regulatory changes.
According to the analysis, the Molded wood pallets market has strong growth possibilities in EU5. A higher concentration of players in the region is developing as a strategic move, as are their efforts to boost sales and distribution through internet platforms. Furthermore, the Asia Pacific, particularly the eastern region, is likely to offer greater incremental prospects, owing to recent large expenditures in industrial sectors, which have predominantly boosted pallet adoption.