(MENAFN- GlobeNewsWire - Nasdaq) U.S. Wood Pallets Market Expected to Surpass USD 2.98 Billion by 2032, Growing at a 4.72% CAGR Amidst Rising Adoption of Sustainable Packaging SolutionsAustin, Sept. 08, 2025 (GLOBE NEWSWIRE) -- Wood Pallets Market Size & Growth Analysis
According to SNS Insider, the global Wood Pallets Market was valued at USD 13.22 billion in 2024 and is projected to reach USD 19.11 billion by 2032, growing at a CAGR of 10.07% over the forecast period (2025–2032). The U.S. market accounted for USD 2.06 billion in 2024 and is expected to reach USD 2.98 billion by 2032, expanding at a CAGR of 4.72%.
This expansion is primarily fueled by the fast emerging e-commerce business, the worldwide expansion of supply chains, and the growing need for green and affordable shipping solutions. Wood pallets are still the top preference in every major industry owing to their strength, recyclability, and lower carbon footprint compared to plastic or metal alternatives.
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Market Overview
Wood pallets are the workhorse of the worlds logistics and warehousing providing a uniform and reliable surface for the movement and storage of goods. Rising demand driven by strong manufacturing, lift of cross-border trade and automation in distribution centres are propping up demand.
Strong infrastructure, developed logistics networks, and an established pallet recycling system continue to support the U.S. market's dominance of North America. Overseas sustainability trends are causing businesses around the world to invest in reconditioned or heat-treated pallets that comply with international shipping regulations (ISPM 15). Also, the transition toward circular economy practices is leading to the adoption of pallet pooling systems, enabling businesses to cut down costs and environmental impact.
Major Companies in the Wood Pallets Market Include:
Brambles Limited Pallet One Inc. Millwood Inc. Falkenhahn AG PECO Pallet Cabka Group Loscam Rehrig Pacific Company Schoeller Allibert UFP Industrial CHEP ORBIS Corporation Craemer Holding Kronus Group Nelson Company Myers Industries IGPS Logistics CABKA IPS LPR – La Palette Rouge Tasler Inc.
Segmentation Analysis
By Product Type, Softwood Pallets Led the Market With 57% Share in 2024
Softwood pallets are a predominantly used product, holding more than 57% of the overall share, as they are lightweight, inexpensive and are easily handled throughout the supply chain. They are commonly used in food, retail and e-commerce logistics when high-throughput or one-way pallets are needed. Stringent waste reduction/circular economy legislations particularly in Europe and North America are compelling manufactures to adopt recycled pallets.
By Product Type, Block Pallets Held Largest Share of Around 60% in the Market
Block pallets account for the largest market share of approximately 60% owing to superior strength, durability and can be handled from all four sides using a forklift. Engineered pallets are gaining traction as the fastest growing sector, driven by increasing adoption of tailor-made, lightweight, and high-performance pallets.
By Entry Type, Four-way Pallets Accounted for 65% Market Share
Four-way pallets led the market with over 65% share as they provide better operation efficiency by permitting a forklift to enter all 4 sides. Their flexibility makes them increasingly popular in logistics centres, ports, and in large scale warehouse systems.
By End-Use Industry, Food & Beverages Segment Led the Market by Over 30% Share
The food & beverages industry accounts for over 30% of the market share, considering the over-whelming dependence on palletized handling for packaging, storage, and transportation of fresh produce. Retail and e-commerce are also creating huge demand for low-cost pallet solutions. Pharmaceuticals & healthcare is the fastest-growing sector driven by tighter hygiene requirements, global distribution of vaccines and medicines, and rapid growth cold chain logistics.
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By Region, Asia Pacific Led the Market with Around 39.29% Share in 2024; North America is the Fastest Growing Region in the Market
Asia Pacific held the largest Wood Pallets Market Share in 2024, around 39.29% 2024 due to the large manufacturing and export base in the region, notably in China, India, Vietnam, and Indonesia. There is electronics, automotive and textiles epicentres in the region that goes global, meaning large volume palletized shipping to facilitate cross-border trade.
The North American region is the fastest-growing market. driven by stringent safety regulations for the transportation of food and pharmaceuticals, as well as the expansion of cold chain logistics.
Exclusive Sections of the Wood Pallets Market Report (The USPs):
ENVIRONMENTAL COMPLIANCE METRICS – Drawn from Section 4.2 & 4.3, this metric helps you understand how wood pallet manufacturers are aligning with stringent environmental and trade regulations. Increasing pressure to reduce deforestation, adopt circular economy practices, and meet sustainability certifications (FSC or PEFC) is shaping production and export strategies across regions. CAPACITY UTILIZATION RATES – Referencing Section 4.1, capacity insights reveal whether the industry is operating under strain or surplus. Post-pandemic recovery and fluctuating demand across logistics, warehousing, and retail have caused capacity volatility. This metric helps in identifying investment or consolidation opportunities in key manufacturing hubs. SUPPLY CHAIN DISRUPTION INDEX – Derived from Section 4.1 & 4.3, this index tracks the impact of raw material shortages (timber/logs), trade tariffs, and geopolitical instability. It helps stakeholders identify vulnerable links in the pallet supply chain, especially in regions with heavy reliance on imported wood or limited sawmill capacity. TECHNOLOGICAL ADOPTION RATE – Highlighted in Section 4.4, automation in pallet manufacturing and the rise of smart pallets (with RFID/IoT tracking) show increasing tech penetration. This helps investors and suppliers spot gaps in digitization and automation across developing regions and SMEs. CUSTOMER PAIN-POINTS & END-USER INSIGHTS – Pulled from Section 4.6, these insights reflect dissatisfaction around high repair costs, lack of standardization, and return logistics. This data helps businesses refine value propositions and develop new service models (like pallet pooling) to meet evolving customer expectations.
Recent Developments:
In 2025 , AllCargo Gati announced a new phase of logistics park expansions in India, focusing on sustainability through solar-powered operations and electric vehicle integration. Supported by India's National Logistics Policy, the expansion will reduce costs and improve pallet-based cargo handling across e-commerce and industrial supply chains. In 2025, New Sanjali Cargo Terminal India's first private Gati Shakti cargo terminal was inaugurated at Sanjali, near Ahmedabad, on the Western Dedicated Freight Corridor. This development enhances multimodal logistics efficiency, offering faster rail-to-road cargo transfers. Such infrastructure upgrades significantly boost pallet usage in bulk goods and containerized trade movements.
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Wood Pallets Market Report Scope
| Report Attributes | Details |
| Market Size in 2024 | USD13.22 Billion |
| Market Size by 2032 | USD 19.11 Billion |
| CAGR | CAGR of4.71% From 2025 to 2032 |
| Base Year | 2024 |
| Forecast Period | 2025-2032 |
| Historical Data | 2021-2023 |
| Report Coverage | Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook |
| Key Segments | . By Wood Type -Softwood Pallets, Hardwood Pallets, Recycled Wood Pallets
. By Product Type- Stringer Pallets, Block Pallets, Engineered Pallets;
. By Entry Type -Two-Way Pallets, Four-Way Pallets;
. By End-Use Industry -Food & Beverages, Pharmaceuticals & Healthcare, Retail & E-commerce, Logistics & Transportation, Automotive, Chemicals, Manufacturing & Industrial Goods, Others (Agriculture, Construction Materials, etc.) Polymers, Adhesives & Sealants |
| Regional Analysis | North America (US, Canada, Mexico), Europe (Germany, France, UK, Italy, Spain, Poland, Turkey, Rest of Europe), Asia Pacific (China, India, Japan, South Korea, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (UAE, Saudi Arabia, Qatar, South Africa, Rest of Middle East & Africa), Latin America (Brazil, Argentina, Rest of Latin America) |
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