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The wood packaging market is estimated to grow at a CAGR of 5.44% between 2022 and 2027. The size of the market is forecast to increase by USD 21.6 billion. The growth of the market depends on several factors, including cost benefits associated with wood packaging, the rise in global containerized cargo trade, and rising demand from the e-commerce industry.
This report extensively covers market segmentation by product (pallets and cases and boxes), application (food and beverages storage, transportation, industrial, shipping, and others), and geography (APAC, Middle East and Africa, South America, North America, and Europe). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The reports categorize the global wood packaging market as a part of the global metal and glass containers market within the overall global containers and packaging market. The global metal and glass containers market includes products of metal, glass, or plastic containers, including corks and caps. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The cost benefits associated with wood packaging are notably driving the market growth, although factors such as fluctuating raw material prices may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Wood Packaging Market Driver
One of the key factors driving growth in the market is the cost benefits associated with wood packaging. Distribution centers, production units, and manufacturing units are focusing on reducing the cost of shipment during the export and import of goods, which also includes trade packaging costs, sanitization charges, floor spacing, and utilization costs, and labor charges during storage and transportation of goods.
Wood packagings such as pallets and wooden boxes for export and import is a cost-effective option for end-users when compared with substitute products such as plastic pallets. The cost of floor spacing and space utilization constitutes a significant percentage of the shipment cost of goods. Proper utilization of the space during the storage and transit of goods can reduce the cost by around 54%. Wooden pallet manufacturers are introducing stackable pallets as they help reduce floor space. Wooden pallets are preferred for transporting food and beverage products.
Significant Wood Packaging Market Trend
Growing innovation in wooden pallets is a major trend shaping the market growth. The market is highly fragmented. Vendors in the market are introducing innovative products to hold their market position. The wood packaging vendors are launching smaller pallets for display-ready packaging at retail shops. This includes half pallets of 24 x 40 inches and quarter pallets of 24 x 20 inches. These pallets are also used for the safe transportation of products from the manufacturing unit to retail stores. For an automated supply chain, which is facilitated by automated material handling equipment, wood packaging product manufacturers are introducing smarter pallets for easy handling. Smarter pallets are stiffer and uniform in geometry and dimension. They avoid sagging and provide better interfacing with automated material handling equipment. With such innovations in terms of design and size, the demand for wood packaging is expected to increase during the forecast period.
Major Wood Packaging Market Challenge
The fluctuating raw material prices will be a major challenge for the market during the forecast period. Softwood, hardwood, plywood, and composite blocks are commonly used materials for manufacturing wood packaging products such as pallets and boxes. Softwood is produced from gymnosperm trees such as pines. The price of pine lumber is volatile in nature. The variations in raw material prices will affect the profit margins of wood packaging product manufacturers.
Low raw material prices will increase raw material purchases for vendors in the market. At the same time, they can affect the profit margins because low raw material prices impact the price of the final end-products (wooden pallets and boxes). Similarly, high raw material prices will affect the liquidity of wood packaging product manufacturers because they will increase the operation cost. As a result, wood packaging product manufacturers tend to transfer the cost burden to end-users.
Key Wood Packaging Market Customer Landscape
The report includes the adoption lifecycle of the market, 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 growth strategies.
Global Wood Packaging Market Customer Landscape
Vendors 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.
Shur-way Group Inc. - The company offers wood packaging such as wooden pallets, skids, and custom packaging. The company offers various products such as wooden pallets, skids, boxes, reels, cable drums, design repack services, corrugated boxes, packaging materials, and other packaging solutions.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the pallets segment will be significant during the forecast period. The segment is expected to grow substantially during the forecast period. The growth in the global construction industry is the key factor driving this segment. The global residential building construction market is expected to reach USD 7 trillion by 2023. APAC is expected to be the major contributor to the global residential building construction market, driven by rising urbanization and growing disposable income. The growth in the construction industry will fuel the demand for wooden pallets to transport goods such as cement and other construction chemicals to construction sites.
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The pallets segment was valued at USD 53.73 billion in 2017 and continued to grow until 2021. The load capacity of wooden pallets is higher than its substitutes, such as plastic pallets. As a result, end-users in the construction industry can transport a high quantity of goods at once with the help of forklift trucks. The increase in industrial production is also expected to drive the demand for wood packaging globally. The penetration of the Internet of Things (IoT) and Industry 4.0 is increasing the volume of global industrial production via automation. Such factors will facilitate market growth during the forecast period.
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APAC is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC is expected to grow considerably during the forecast period. The e-commerce and retail industries are the key end-users of this segment. The e-commerce industry in China was valued at USD 813 billion in 2019. This, in turn, is encouraging many third-party logistics players (3PL) to expand their footprint in the e-commerce industry in China. The expansion of e-commerce distribution centers in China is expected to increase the need for wooden pallets and boxes. China and India are the major revenue-generating markets in APAC. The food and beverage industry is one of the major end-user industries of the wood packaging market in the region, which uses cases and boxes. This increase in demand for wood packaging in the food and beverage industry is driving the growth of the market in the region. The GDP growth rate of APAC, one of the macroeconomic factors, is the highest among all regions across the world. The growth of the packaging market in countries such as Vietnam, Singapore, South Korea, Australia, and Malaysia is fueling the growth of the market in APAC.
The outbreak of COVID-19 in the region hampered the growth of the market in the consumer and manufacturing industries in APAC. However, the industry witnessed growth due to the increase in the domestic demand for medical drugs, coupled with increasing foreign investments. There has been a significant rise in the need for packaging to protect pharmaceutical products from the damage caused by variations in temperature and light, and chemical reactions.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Wood Packaging Market Scope
|
Report Coverage |
Details |
|
Page number |
166 |
|
Base year |
2022 |
|
Historic period |
2017-2021 |
|
Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.44% |
|
Market growth 2023-2027 |
USD 21.6 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
4.46 |
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Regional analysis |
APAC, Middle East and Africa, South America, North America, and Europe |
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Performing market contribution |
APAC at 44% |
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Key countries |
Iran, India, China, Japan, and Brazil |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Arrington Lumber and Pallet Co., Brambles Ltd., C&K Box Co. Inc., Coxco Inc., FALKENHAHN AG, Greif Inc., InterAgra SC, Kamps Pallets Inc., Millwood Inc., Mondi plc, Nefab AB, Ongna Wood Products, Pacific Pallet Ltd., Palcon LLC, Rowlinson Group Ltd., Shur-way Group Inc., Stora Enso Oyj, Totre Industries, UFP Industries Inc., and United Pallet Services Inc. |
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Market dynamics |
Parent market analysis, 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 forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
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
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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