North America Pallets Market Research Report, 2028

The North American pallet market refers to the market for pallets in the geographical region of North America, which includes the United States, Canada, and Mexico. Pallets are essential tools for storage, handling, and transportation of goods and are used in a wide range of industries, such as food and beverage, pharmaceuticals, retail, logistics, and more. The North American pallet market is highly competitive, with many large and small players operating in the market. Some of the key players in the market include Brambles Limited, CHEP USA, Millwood Inc., PECO Pallet Inc., and Rehrig Pacific Company. The most common type of pallet used in North America is the 48x40-inch wooden pallet, also known as the standard grocery manufacturers' pallet (GMA pallet). These pallets are widely used in the region for a variety of industries, including retail, food and beverage, and agriculture. The GMA pallet has become the standard in North America due to several factors, including its availability, durability, and compatibility with material handling equipment. These pallets are typically made of hardwood, such as oak or maple, and are designed to hold up to heavy loads and repeated use. According to the research report, ""North America Pallet Market Research Report, 2028,"" published by Actual Market Research, the market is expected to grow at a rate of 4.76% CAGR during the forecast period. Increasing demand for medicines and health supplements has given North America the top spot in the industry. Due to their well-established food and beverage and construction industries, the United States and Canada account for the majority of the demand in the area. The pharmaceutical, e-commerce, and manufacturing industries are expanding in the Americas, adding to the demand for storage and logistics operations. Vendors in the transportation and warehousing industries are opting for sustainable and economic methods, such as increased usage of corrugated pallets, to increase the efficiency of these operations. Additionally, factors such as the economic recovery, population growth, and increase in the disposable income levels of consumers in the Americas contribute to the growth of the cardboard pallet market in this region. The pallet market in North America is being driven by the significant presence of leading e-commerce websites like Amazon. The e-commerce sector especially grew in prominence in 2020 owing to elongated periods of lockdown due to the coronavirus pandemic, and, thus, the demand for pallets in storage and warehouse facilities saw a robust demand. Additionally, investments by private equity owners to sustain the pallet market provided further impetus to the market's growth, especially during the pandemic. The pallet industry in North America also witnessed growth within the pharmaceutical sector, owing to the robust presence of a number of pharmaceutical players in the region. According to the report, the North American market is segmented into three major countries, including the USA, Canada, and Mexico. Among them, the USA market is expected to exhibit significant growth on account of increased government focus on strengthening their manufacturing sector through trade agreements and the ""Make in America"" campaign. Besides, the companies operating in the region are increasingly opting for sustainable business practises to strengthen their brand image. Favourable trade agreements, such as the T-MEC between the U.S., Canada, and Mexico, are expected to boost manufacturing activities within the region, which is expected to drive the market in North America. The transportation business in the United States is large and diverse, and it underpins much of the economic activity in other sectors. It encompasses both the vehicles needed to transport people and products, as well as the roads, railroads, rivers, and airways they travel on. It consists of cargo and passenger terminals that allow people and commodities to be transferred between vehicles and modes. It includes the control and information systems that allow the network to run smoothly and efficiently while also allowing users to make the best decisions possible about how to use it. It encompasses both public and private transportation providers, as well as the operation of privately owned personal automobiles. Thus, the requirement for pallets in the American market is on the rise. Furthermore, the rise in demand for pallets is anticipated to be aided by a dynamic shift towards online shopping platforms. Nearly every company is now adopting an online mode of sales, thus increasing the demand for pallets across various sectors and thereby invigorating the market's growth. The market in the North American region is also expected to be aided by the growing demand for sustainably produced wooden pallets. Moreover, government initiatives to promote the use of reusable and recycled pallets through platforms like the North American Pallet Recycling Network are anticipated to provide growth opportunities to the market in the forecast period in the wake of rising environmental concerns. The market is projected to witness further growth due to the growing demand for domestically produced pallets. Furthermore, increased investments in research and development (R&D) activities to integrate features like RFID to track and manage multiple-trip pallets are anticipated to bolster market growth in the region. A ""pallet"" is defined as a hard wooden structure that is capable of handling and storing heavy goods from one place to another. These goods are lifted or moved using a forklift truck. The typical dimensions of American pallets are 1200 x 1000 nm and they are strong and durable. Moreover, the entry openings of pallets can vary according to the design. In North America, the market is being driven by the portability, rigidity, and strength of pallets, which improve the assembly, safety, and transportation of heavy goods. Products such as double-face pallets and stringer pallets provide extra support to the goods and can facilitate heavy-duty tasks, which is invigorating the market's growth. Additionally, the market is further fuelled by the rising demand for sustainably produced wooden pallets. Moreover, government initiatives such as the North American Pallet Recycling Network for promoting the use of reusable and recycled materials are projected to provide growth opportunities over the forecast period. Wood pellets are gaining market share at a rate of more than 75%, as these pellets have higher energy and density than unprocessed biomass. Furthermore, wood pellet production uses waste wood from agriculture and sawmills, an effective way to reduce waste and generate heat and power. Traditionally, wood pellets are used for heating applications, primarily in the residential and commercial sectors for food, cooking and grilling, and supplying heat to homes. Since the cost of pellets has remained lower than that of other fuels for a long time, it has become a more economical option, addressing the primary concern of the residential and commercial sectors. Furthermore, consumers are becoming more aware of the use of coal for power generation. Thus, many consumers are shifting from coal to wood pellets for heat generation during the winters in the United States and Canada, which is a major driving factor for the wood pellet market. Thus, considering all the factors, the wood pellets market is likely to grow with a high CAGR in the North America region during the forecast period. Based on type, the North American market will be dominated by the stringer segment in 2022. The North American pallet market is primarily driven by the growing product application in warehouses for storing raw materials and finished products such as rental and non-rental pallets. The non-rental market will dominate the market in 2022. However, the rental market is expected to grow at a higher CAGR of more than 7% from 2023 to 2028. Additionally, the key market players are introducing multiple-trip pallets that assist in minimising solid waste, improving operational efficiency, and reducing cost per trip. They are also integrating tracking devices with artificial intelligence (AI), radio-frequency identification tags (RFID), and the internet of things (IoT) to enable easy tracking and increase the protection of goods, which is favouring market growth. During the COVID-19 pandemic, due to lockdown and cross-border restrictions, demand for wood pellets decreased. Further, it also affected the supply of raw materials in North America, resulting in a negative impact on the supply side of the wood pellet market. The market is expected to grow in a couple of years, such as with the rise in investment in renewable energy solutions in all major countries in North America. Moreover, the government's supportive policies are expected to drive the market during the forecast period. However, higher investment in alternative renewable energy sources such as solar PV and the wind is anticipated to hinder the market's growth during the forecast period. High demand for carbon-neutral and sustainable fuel and wood pellets could replace coal-based power generation. The regulations and licencing requirements for pallets in North America can vary depending on the industry, the materials used, and other factors. Here are some of the common regulations and requirements that may apply: • ISPM 15: The International Standards for Phytosanitary Measures No. 15 (ISPM 15) is a regulation that applies to wood packaging materials used in international trade. Under ISPM 15, wood pallets that are used for international shipments must be heat-treated or fumigated to prevent the spread of pests and diseases. • Food safety regulations: Pallets used in the food and beverage industry must meet strict food safety regulations to prevent contamination and ensure the safety of the products being transported. These regulations may include guidelines for materials, cleaning procedures, and handling practices. • Environmental regulations: Some jurisdictions in North America may have regulations governing the use of certain materials for pallets, particularly with regards to their environmental impact. For example, there may be restrictions on the use of certain chemicals or treatments for pallets. • Transportation regulations: Pallets used in the transportation of hazardous materials may be subject to specific regulations regarding their construction and labeling. • Industry-specific regulations: Certain industries may have specific regulations governing the use of pallets. For example, the pharmaceutical industry may require pallets to be made from certain materials to prevent contamination, while the automotive industry may have requirements for pallets used in the transport of heavy or oversized parts. Pallet Associations: • National Wooden Pallet and Container Association (NWPCA): This is a trade association that represents the wooden pallet and container industry in North America. The NWPCA provides information, resources, and networking opportunities for its members and also works to promote the use of wood as a sustainable and cost-effective packaging material. • Pallet Enterprise Association (PEA): This is a professional organisation for individuals and companies involved in the pallet and container industry in North America. The PEA offers education, training, and networking opportunities for its members and also serves as a resource for information about industry trends and best practices. • Reusable Packaging Association (RPA): While not specifically focused on pallets, the RPA is a trade association that represents companies involved in the manufacture, rental, and reuse of reusable packaging products, including pallets. The RPA works to promote the use of reusable packaging as a sustainable and cost-effective alternative to single-use packaging. Recent Developments: • PECO Pallet: PECO Pallet, a leading provider of pallet rental services, recently expanded its operations in North America by opening a new pallet depot in Chicago. The new facility is designed to improve the company's ability to serve its customers in the Midwest and will provide additional capacity for pallet storage and repair. • Millwood Inc., a leading manufacturer of wooden pallets and packaging products, has recently introduced a new line of pallets made from hybrid materials. These pallets combine the strength and durability of wood with the lightweight and sustainability benefits of plastic. • CHEP, a global leader in pallet and container pooling services, has recently launched a new sustainability initiative in North America. The initiative includes the introduction of new, more sustainable pallet designs, the adoption of circular economy principles, and a commitment to carbon neutrality by 2050. • iGPS Logistics: iGPS Logistics, a provider of plastic pallet pooling services, has recently expanded its operations in North America by opening new pallet processing centres in Illinois and Georgia. The new facilities will increase the company's capacity for pallet processing and storage, allowing it to better serve its customers in the Midwest and Southeast. Major Companies present in the market: DS Smith, Smurfit Kappa group, Conitex Sonoco, Cabka Group GmbH, Menasha Corporation, UFP Industries, Inc, Schoeller Allibert Services B.V., Brambles Limited, Millwood, Inc., KraftPal Technologies Ltd., Myers Industries, Inc. , Tranpak Deliver Innovation Considered in this report • Geography: North America • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • North America Power Tools market with its value and forecast along with its segments • Country-wise Power Tools market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation Countries covered in the report: • United States • Canada • Mexico By Material Type: • Wood • Plastic • Metal • Corrugated • Others By End Use: • Food and Beverages • Chemicals • Pharmaceuticals and Healthcare • Automotive • Transportation & Warehousing • Consumer goods and Retail • Engineering • Agriculture • Others By Application Type: • Rental • Non-rental By Structural Design Type • Block • Stringer • Others The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Pallet industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.