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Pallet Market Analysis Canada - Size and Forecast 2024-2028

Pallet Market Analysis Canada - Size and Forecast 2024-2028

Published: Jul 2024 136 Pages SKU: IRTNTR76079

Market Overview at a Glance

$1.81 B
Market Opportunity
5.97%
CAGR
5.27
YoY growth 2023-2024(%)

Canada Pallet Market Size 2024-2028

The Canada pallet market size is forecast to increase by USD 1.81 billion, at a CAGR of 5.97% between 2023 and 2028. The e-commerce industry in Canada is experiencing significant growth and this surge in online shopping has led to a corresponding increase in the demand for efficient and reliable shipping solutions. One such solution is the use of pallets in load-handling and shipping sectors. Pallets are essential for securely transporting and storing large quantities of goods. In particular, there is a rising trend towards the use of recyclable plastic pallets, which offer numerous benefits over traditional wooden pallets. These pallets are more durable, lighter, and easier to clean, making them an ideal choice for the e-commerce industry's increasing demand for streamlined and sustainable logistics solutions. Additionally, the use of recyclable plastic pallets reduces waste and contributes to a more eco-friendly supply chain.

What will be the Size of the Market During the Forecast Period?

Pallet Market in Canada Size

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Market Dynamics

The market is a significant sector in the logistics and transportation industry, encompassing various types of pallets made from wood, plastic, corrugated paper, metal, and other materials. These pallets play a crucial role in the transportation and warehousing of goods, particularly in industries such as food and beverages, chemicals and pharmaceuticals, construction, and retail. Wood pallets continue to dominate the market due to their durability and cost-effectiveness. However, plastic pallets are gaining popularity due to their lightweight and reusable nature. Corrugated pallets and molded pulp pallets are also gaining traction as sustainable alternatives to traditional pallets.

Pallet tracking technologies have become increasingly important in ensuring efficient supply chain management and reducing losses. Five-year intervals and macroeconomic indicators significantly impact the pallet market, particularly in industries such as logistics & transportation, food & beverage, chemical, and pharmaceutical. The transportation equipment segment is a major consumer of pallets, followed by warehousing. The construction industry also utilizes pallets extensively for the transportation and handling of building materials. The market for pallets is expected to grow steadily in the coming years, driven by the increasing demand for efficient and sustainable logistics solutions.

Key Market Driver

One of the key factors driving the market growth is the high applications of pallets in the shipping and load-handling sectors. Pallets are referred to as goods or material or load-handling equipment that offers the required support during their transportation. Pallets are extensively used for various tasks including the storage, loading, and unloading of goods, and have become an important part of supply chain management in different industries.

Moreover, services, automotive, food processing, and electrical and electronics are some of the common end-user industries of the pallets. The increasing demand for material handling coupled with shipping and load-handling across various industries is expected to positively impact the market. Hence, such factors are expected to drive the market during the forecast period.  

SIgnificant Market Trends

A key factor shaping the market growth is the rising popularity of pallet tracking technologies. The main factor which determines the material handling and transportation costs in any supply chain is the efficiency of logistics and warehousing operations. Many market players in the manufacturing of pallets are increasingly focusing on customizing the pallets as per the needs of the customers to stay ahead of the competition. 

Additionally, several factors such as the use of cost-effective and time-saving material handling equipment are vital for enhancing the operational efficiency of logistics operations. Furthermore, many logistics companies are integrating new and advanced tracking technologies such as radio-frequency identification (RFID), sensors, and tags in pallets in order to monitor the entire supply chain process. Hence, such factors are expected to drive market growth during the forecast period.

Major Market Challenge

Fluctuating lumber prices and shortage of raw materials are one of the key challenges hindering the market growth. The price volatility of lumber is significantly impacting the market growth in Canada. There is an increase in lumber prices in Canada, especially in June 2023, due to wildfires which have raised concerns about disruptions in the supply chain. This market fluctuation of lumber has become unpredictable and is negatively affecting retailers and consumers alike.

Furthermore, factors such as scarcity in the availability of wood and lumber due to the increased demand for wood products across various industries resulted in competition for timber resources which fuelled the fluctuation of lumber prices in the market. In addition, several environmental regulations and sustainable forest management practices may hamper the supply of lumber. Hence, such factors will hinder the market growth during the forecast period.

Customer Landscape

The market research report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

Pallet Market in Canada Share by Geography

Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Alberta Pallet Co. Ltd: The company offers pallets such as custom pallets, recycled pallets, new pallets, heat-treated pallets, and combination pallets.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

  • 204 Pallet and Packaging Inc
  • Bluewater Pallet Inc.
  • Canada Pallet Source
  • Dominion Pallet and Crate Ltd.
  • EASTERN ONTARIO PALLETS LTD.
  • Enviro Pallet Recovery Ltd.
  • Niagara Pallet
  • Pallet Management Group Inc.
  • Pallet Renew
  • Paramount Pallet
  • S and B PALLETS LTD.
  • Trican Packaging Inc.
  • UFP Industries Inc.
  • United Pallets and Crates INC.
  • Universal Pallets
  • Verbeek Pallet Supply Co. Ltd.
  • Weston Forest
  • Windsor Pallet Ltd.
  • Woodbridge Pallet

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

What is the Largest Growing Segments in the Market?

The wood segment is estimated to witness significant growth during the forecast period. There is an increasing adoption of the wood pallet segment across various industries due to its several advantages such as higher price performance, reliability, and easy availability.  Additionally, the main advantage of wood is that it is stiffer and more affordable and can be easily fabricated into different sizes as per the end-users requirement. Composite wood pallet segments are extensively used as it facilitates transportation and storage of goods and they are available in different shapes but are comparatively expensive when compared to other segments.

Pallet Market in Canada Size

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The wood segment was the largest segment and was valued at USD 4.54 billion in 2018. There is increasing adoption of the wood pallet segment across production units, distribution centers, and manufacturing units due to their cost-effectiveness. Additionally, this segment is extensively used in several industries including agriculture, food and beverage, pharmaceuticals, manufacturing, and logistics, for storing and transporting goods. Furthermore, wood pallets are mainly utilized for packing, transporting, and delivering food products such as fruits and vegetables, fish and seafood, oil, cheese, and dairy and bakery products. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

  • Product Outlook
    • Wood
    • Plastic
    • Corrugated paper
    • Metal
  • End-user Outlook 
    • Food and beverages
    • Chemicals and pharmaceuticals
    • Retail
    • Transportation and warehousing
    • Others

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Market Analyst Overview

In Canada, the pallet market caters to diverse industries such as food and beverage manufacturing, electrical and electronic equipment, and military transportation and storage. Pallet pooling and the use of reusable pallets like softwood, hardwood,  Block wooden pallet, Stringer wooden pallet, and Engineered molded wood pallet are common practices. Different types, such as Europallet Wooden Pallet, plastic pallets, metal pallets, and even cardboard pallet are utilized based on specific needs, including forklift compatibility and handling of temperature-sensitive products. Warehousing companies implement various pallet storage systems like single-deep, double-deep, drive-in, pallet flow, and push back racks, enhancing operational efficiency. Automated identification technologies streamline logistics while addressing environmental concerns through sustainable pallet solutions. The Canadian pallet market thrives on innovation to meet stringent trade regulations and ensure reliable transportation and storage solutions nationwide.

Further, the market is diverse and essential across various industries such as logistics, warehousing, and transportation. It encompasses a wide range of pallet types including block wooden pallets, stringer wooden pallets, and engineered molded wood pallets. These pallets cater to different needs, from heavy-duty industrial applications to food and beverage sectors, supported by standardized options like Europallets, wooden pallets, plastic pallets, metal pallets, and cardboard pallets. The market also offers specialized designs such as reversible pallet, closed pallet, and wing pallet, facilitating efficient handling and storage solutions. Various storage systems like block stacking, stacking frames, single-deep pallet racks, double-deep pallet racks, drive-in racks, pallet flow racks, and push back racks optimize warehouse space and operational efficiency. These solutions are integral to managing inventory, ensuring product safety, and meeting the stringent demands of modern supply chains in Canada.

Market Scope

Report Coverage

Details

Page number

136

Base year

2023

Historic period

2018-2022

Forecast period

2024-2028

Growth momentum & CAGR

Accelerate at a CAGR of 5.97%

Market growth 2024-2028

USD 1.81 billion

Market structure

Fragmented

YoY growth 2023-2024(%)

5.27

Competitive landscape

 Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks

Key companies profiled

204 Pallet and Packaging Inc., Alberta Pallet Co. Ltd., Bluewater Pallet Inc., Canada Pallet Source, Dominion Pallet and Crate Ltd., EASTERN ONTARIO PALLETS LTD., Enviro Pallet Recovery Ltd., Niagara Pallet, Pallet Management Group Inc., Pallet Renew, Paramount Pallet, S and B PALLETS LTD., Trican Packaging Inc., UFP Industries Inc., United Pallets and Crates INC., Universal Pallets, Verbeek Pallet Supply Co. Ltd., Weston Forest, Windsor Pallet Ltd., and Woodbridge Pallet

Market dynamics

Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period.

Customization purview

If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

  • CAGR of the market during the forecast period
  • Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
  • Precise estimation of the size of the market size and its contribution to the parent market
  • Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
  • Growth of the market across Canada
  • Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
  • Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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Table of Contents not available.

Research Methodology

Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

INFORMATION SOURCES

Primary sources

  • Manufacturers and suppliers
  • Channel partners
  • Industry experts
  • Strategic decision makers

Secondary sources

  • Industry journals and periodicals
  • Government data
  • Financial reports of key industry players
  • Historical data
  • Press releases

DATA ANALYSIS

Data Synthesis

  • Collation of data
  • Estimation of key figures
  • Analysis of derived insights

Data Validation

  • Triangulation with data models
  • Reference against proprietary databases
  • Corroboration with industry experts

REPORT WRITING

Qualitative

  • Market drivers
  • Market challenges
  • Market trends
  • Five forces analysis

Quantitative

  • Market size and forecast
  • Market segmentation
  • Geographical insights
  • Competitive landscape

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Frequently Asked Questions

Palletin Canada market growth will increase by $ 1812.9 mn during 2024-2028.

The Palletin Canada market is expected to grow at a CAGR of 5.97% during 2024-2028.

Palletin Canada market is segmented by Product( Wood, Plastic, Corrugated paper, Metal) End-user( Food and beverages, Chemicals and pharmaceuticals, Retail, Transportation and warehousing, Others)

204 Pallet and Packaging Inc., Alberta Pallet Co. Ltd., Bluewater Pallet Inc., Canada Pallet Source, Dominion Pallet and Crate Ltd., EASTERN ONTARIO PALLETS LTD., Enviro Pallet Recovery Ltd., Niagara Pallet, Pallet Management Group Inc., Pallet Renew, Paramount Pallet, S and B PALLETS LTD., Trican Packaging Inc., UFP Industries Inc., United Pallets and Crates INC., Universal Pallets, Verbeek Pallet Supply Co. Ltd., Weston Forest, Windsor Pallet Ltd., Woodbridge Pallet are a few of the key vendors in the Palletin Canada market.

North America will register the highest growth rate of 100% among the other regions. Therefore, the Palletin Canada market in North America is expected to garner significant business opportunities for the vendors during the forecast period.

Canada, North America

  • Growth in e-commerce industry in CanadaThe e-commerce industry in Canada has been growing at a tremendous pace is the driving factor this market.
  • owing to the rising consumer demand for products is the driving factor this market.
  • growing Internet access is the driving factor this market.
  • and the rising penetration of smartphones. Canadians have embraced electronic shopping in the face of significant disruption in retail channels. In 2022 is the driving factor this market.
  • there were over 27 million eCommerce users in Canada is the driving factor this market.
  • which accounted for 75% of the Canadian population. This number is expected to grow to 77.6% in 2025. According to Statistics Canada is the driving factor this market.
  • eCommerce retail trade sales in Canada reached an all-time high of $3.82 billion in December 2020 is the driving factor this market.
  • exceeding the increase recorded in May 2020 ($3.2 billion) as a result of coronavirus pandemic lockdown measures in 2020. In March 2022 is the driving factor this market.
  • e-commerce sales amounted to approximately $2.34 billion. Retail eCommerce sales are expected to reach $40.3 billion by 2025. Retailers are investing in digital platforms to reach consumers spread across a large land mass while also competing with websites such as Amazon Canada. E-commerce sites are receiving more orders from people residing in urban areas of the country. Amazon.com Inc. is the driving factor this market.
  • eBay Inc. is the driving factor this market.
  • Walmart Inc. is the driving factor this market.
  • and Target Brands Inc. is the driving factor this market.
  • among others is the driving factor this market.
  • are the major players in the Canadian e-commerce industry. These companies are increasingly investing in improved logistics and payment systems is the driving factor this market.
  • as well as offering discounts is the driving factor this market.
  • thereby fueling the growth of the e-commerce industry. The growth of the e-commerce industry is increasing the demand in the pallet market in Canada. The high adoption of online shopping in Canada and the strong foothold of major e-commerce players in the country are contributing to the growth of the cross-border e-commerce industry. The growing cross-border e-commerce industry also increases the demand for logistics and services is the driving factor this market.
  • such as transportation and warehousing. Many e-commerce companies are demanding bigger and more efficient warehouses to provide better services to their customers. E-commerce companies use pallets extensively while transporting and warehousing their products. The e-commerce industry needs an efficient system that can manage the overall operations and is the driving factor this market.
  • at the same time is the driving factor this market.
  • ensure end-customer satisfaction. Owing to this is the driving factor this market.
  • pallet racking is widely used by e-commerce companies as a common storage and retrieval system in storage and warehousing facilities. In e-commerce warehouses is the driving factor this market.
  • the products are stacked and stored in pallets in multiple rows to make more efficient use of the limited space available. Therefore is the driving factor this market.
  • the growth of the e-commerce industry in the country is expected to boost the growth of the pallet market in Canada during the forecast period. is the driving factor this market.

The Palletin Canada market vendors should focus on grabbing business opportunities from the Wood segment as it accounted for the largest market share in the base year.