Molded wood pallets are 35% lighter than conventional hardwood pallets and are durable enough for reuse, which increases their preference over other molded wood pallets.
As per a new study by Future Market Insights (FMI), molded wood pallets sales will increase at 5.8% CAGR between 2021 and 2031, enabling overall valuation to surpass US$ 4.5 Bn by the end of the assessment period.
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These pallets are made by molding 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 molded wood pallets.
The global demand for molded wood pallets is expected to increase owing to an increment in the growth of sustainable and cost-effective products. Molding process wood chips, particles, and other residues 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 sanitization during manufacturing make molded wood pellets cost-effective, as well as lighter when compared to wooden pallets.
Key Takeaways from Molded Wood Pallets Market
- The demand for nestable/stackable pallets in the packaging industry has increased exponentially in past few years. This growth can be attributed to the increasing shipments oversees. This segment is expected to create incremental opportunity of US$ 1,084.5 Mn in coming decade.
- Molded wood pallets of full size is gaining traction among end users. This segment is forecast to increase by 240 bps of current market share and reach up to 76.3% in 2031.
- Increasing logistics & 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 molded 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 also is increasing at a rapid pace on account of the expansion of the manufacturing sector.
Impact of COVID-19 on Molded Wood Pallets Market
COVID-19 pandemic has impacted various business environments. The social distancing and workplace shutdowns created new challenges to the business world that continues to adapt to the current challenges and operate in the post-Covid situation. Molded wood pallets play a crucial supporting role in the smooth running of the supply chain.
According to Litco International Inc, despite decelerating activities across various industries, the demand for pellets continued to rise on account of increasing logistic shipments.
With the social distancing and hygienic workplace rules, the demand for the sanitized workplace has been ramped up. Molded wood pallets are gaining traction due to the said conditions which allow retailers to have minimum contact with the product by directly loading the product into the pallet.
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Molded Wood Pallets Market Landscape
Litco International Inc., Millwood Inc, Snyder Industries, Inc, Nefab Group and among others are the prominent players in the global molded wood pallets market. The tier 3 players in the market hold 70-80% in the global molded wood pallets market. In conclusion, key players contribute almost 20-30% of the global demand.