The pallet market - France (2024)

1.2. a favourable trend in the worldwide pallet market

Market size and key figures

In terms of value, the global pallet market, which was valued at $**.* billion in ****, is expected to reach $** billion by ****, posting a CAGR of *. *% over the period ****-****. This global market growth is driven by increasing urbanization, industrialization and the volume of goods traded worldwide. In addition, the evolution of technology and the emergence ofe-commerce continue to increase trade, with even greater delivery requirements: the product must not have been impacted during transport, and must arrive quickly at the customer's home. Free returns are also often offered.

Pallet market World, ****-****, in $ billions Source: ****

Wooden pallets account for by far the largest market share (***).

Pallet market breakdown by material World, ****, in Source: ****

Plastic pallets are set to grow in importance over the next few years. They offer a number of advantages: they are easy to clean, can be used for food, beverages and other products where contamination must be kept to a minimum, and are lightweight. They also last for many years, resisting damage caused by normal use. In addition, their recyclability and ability to be made from recycled materials will be attractive to users looking to improve the perception of environmental friendliness in their operations. ...

1.3. The French market

The last known sales figure for the pallet market was *** million euros in sales in ****. That year, ***.* million pallets were sold[***]:

** million new pallets, **% of which were produced in France, **.* million reconditioned pallets collected in France, **.* million of which were resold.

EUR or EPAL pallets are a type of pallet marketed in France. These pallets are identified by a "EUR" or "EPAL" logo.

Over the last * years, EPAL pallet production has increased by +**%, reaching nearly * million reconditioned pallets and *.* million new pallets, for a total of *.* million pallets sold in **** .

evolution of EPAL pallet production France, ****-****, in units Soruce : Epal France - Business report ****

Estimated pallet sales in ****:

We observe that EPAL pallets represent *.**% of total pallets sold in **** (***).

Furthermore, in ****, sales per pallet unit amounted to *.** euros per pallet (***).

If we assume that the sales generated per pallet unit remain the same, this gives us total sales of ***.** million euros in **** (***).

This estimate probably underestimates actual sales, given that inflation in **** is particularly high for wood (***).

2.1. A market dependent on freight traffic

The main driver of pallet manufacturers' business in France is goods traffic, particularly road haulage. In France, **% of transported volumes are carried on pallets. This is why variations in the volume of goods transported by truck can have a significant effect on demand, and therefore on sales generated by the French pallet industry. Inland road freight transport will account for **% of all inland freight transport in ****.

development of inland freight transport France, ****-****, in billions of tonne-kilometres Source: ****

Over the period ****-****, the overall quantity of goods exchanged by land declined, before showing growth over the period ****-****. In ****, *** billion tonne-kilometres of goods will be traded by road, **.* by rail, * .* by river and *.* by pipeline.

2.2 Target companies

Pallets can be used to transport all kinds of goods, but are particularly widespread in thefood industry, theautomotive and maritime industries, because of their ability to support heavy loads, and in large logistics companies, and increasingly in thechemical and pharmaceutical industries.

It's important to understand which companies are present in France, so as to know which sectors will be driving demand for pallets. In ****, more than half of all non-agricultural commercial businesses(***) fall into the category of commercial services, and therefore do not use pallets. The remaining companies are distributed as follows: **.*% for trade, **. *% for construction, *.*% for industry and *. *% for transport and warehousing.

The business fabric France, ****, as % of total Source: ****

Nevertheless, if we measure the output of French companies by sector, according to the share of sales they represent, the trade sector comes out on top, accounting for **. *% of the total sales of non-market, non-agricultural companies, followed by industry, whose share of sales is **.*%.

Sales of non-agricultural sales companies by sector France, ****, in Source: ****

Although the above figures exclude agricultural production, the latter remains important to take into account, particularly for the transport of fruit and vegetables. In ****, sales excluding subsidies in the agricultural sector will amount to **.* billion euros ...

2.3 E-commerce benefits the pallet market

The development of e-commerce has accelerated since the covid** crisis, with online purchases and deliveries exploding in response to health measures. According to Kantar, *.* million new consumers shopped online. In the first half of ****, online purchasing grew by +**% compared to the first half of ****. In the food segment, this growth amounted to +**%. [***] This demand is leading to an increase in merchandise transport, particularly in the "last mile" segment, i.e. the delivery of goods between the storage warehouse and the consumer, usually in the city .

In * years, French e-commerce sales have increased by over **%, reaching *** billion euros in ****.

Annual e-commerce sales France, ****-****, in billions of euros Source: ****

In addition, consumers are increasingly demanding when it comes to the delivery of goods , with expectations for fast delivery, products intact on delivery and free returns. By ****, a quarter of products purchased online have been returned, creating a secondary flow of goods to be transported. [***]

Pallets meet these needs with the following advantages[***] :

Optimization of truckfill rates with pallet storage. Lower delivery costs thanks to the sharing of trucks by different companies with goods to exchange. This is made possible by the standardization of pallets across Europe. Optimized truck unloading and loading thanks ...

3.1. A drop in French production

Wood packaging manufacturing

We can consider the data provided by INSEE for companies registered under NAF code **.**Z, entitled "manufacture of wooden packaging". The scope of activity covered by this NAF code is broader than the scope of this study, but it is nonetheless worth considering these data, as they indicate trends in the sector[***].

Below are the various activities registered under NAF code **.**Z:

manufacture of wooden boxes, crates, cylinders and similar packaging manufacture of wooden pallets, box pallets and other load boards manufacture of wooden barrels, vats, tubs and other cooperage products manufacture of cable drums, of wood

establishments registered under code **.**Z France, ****-****, in units Source: ****

wood packaging companies will experience an overall decline over the **** - **** period, from *** companies in **** to *** in ****.

Workforce registered under code **.**Z France, ****-****, in units Source: ****

Over the same period, the number of employees working for wood packaging companies fell from **,*** to **,***, a *.*% drop in the workforce. Nevertheless, this sector will be recruiting over the period ****-****, with growth of +*.*%.

The map and table below show the distribution and concentration, by region, of companies operating under NAF code **.**Z.

Source: ****

Source: ****

3.2. Pallet production

Pallet origins

The sawn timber used to make wooden pallets can come from softwood species (***). In France in ****, almost **% of the species used will come from softwoods, compared with just *% from hardwoods. Since ****, the share of softwoods has risen by * percentage points.

Tree species used for pallet production France, ****/****, in % Source: ****

In France, in **** more than *.* millionm* of sawn timber were used to manufacture wooden pallets. In half of these cases, the sawn timber comes from a sawmill integrated into the pallet manufacturing company, and in the other half, the manufacturing companies find their supplies elsewhere. [***].

Of this **% sourcing, **% comes from France and **% is imported. [***]

Domestic production

Some wooden pallet manufacturing companies use molded wooden dice. This technique accounted for *.*% of pallet production in **** (***)[***].

Of the ** million new pallets produced in ****, the volume of pallet production in France is mainly divided between *-way and *-way pallets, which account for **.*% and **. *% of total production respectively.

Breakdown of pallet production by type France, ****, in Source: ****

In France, there is a large number of very small producers (***), i.e. * manufacturers who together constitute **.*% of the pallets produced[***].'

Pallet production segmentation

France, ****

Source: ****

As for plastic pallets, these are produced in plastic industry plants ...

3.3. marketing and distribution

Local marketing

The wood pallet market is relatively local.localin the sense that **% of new pallets and **% of reconditioned pallets are sold less than *** km from their production site.

In the majority of cases, pallets are solddirectly between the manufacturer and the end customer,without any intermediaries, even thoughsome resellers and marketplaces. The manufacturer generally takes care of delivering pallet orders directly to the customer. [***]

Customer typology

The food-processing and construction industries are the main purchasers of new pallets, accounting for **% and **% respectively. Overall, the manufacturing industry accounts for half of all new pallet purchases in France.

Breakdown of new pallet purchases by customer France, ****, in Source: ****

When it comes to buying used pallets, the agri-food industry and the construction and public works sector remain the main buyers, with **% and **% of purchases respectively. The paper/cardboard industry in particular seems to prefer used pallets, with **% of purchases, while the chemical and pharmaceutical/cosmetics industries are much more reticent than for new pallets, with *% of used pallet purchases for each of these industries.

Breakdown of used pallet purchases by customer France, ****, in

4.1. product ranges

Today, there are three main types of wooden pallet, plus pallet boxes (***):

Two-way pallets: These are herringbone pallets that allow handling forks to pass only on two opposite sides of the pallet. Four-way pallets: These are diced pallets, allowing forks to pass through on all four sides of the pallet. Backsplash pallets: These are *-dimensional pallets, mainly used for transporting doors, windows and glass.

Plastic and metal pallets come in two main formats: two-way and four-way

In France, there is no standard law governing handling pallets. However, it is important to bear in mind that certain dimensions have become standardized over time. The table below summarizes the main formats:

Source: ****

There is little competition from substitute products. Wooden pallets are sometimes replaced by plastic, metal or cardboard pallets, but wood is still the preferred pallet material. According to Sypal**% of pallets in France are made of wood. [***]

4.2. production costs

The production cost of wooden pallets depends on the same indicators as the production cost of other wooden packaging. The cost of wood, the main material used in pallets(***), represents **% of the cost of manufacturing a pallet.

There has also been an increase in the price of pallet production in France. The graph below shows the evolution of pallet production prices in France between **** and ****, with a base of *** in ****. We see a sharp rise in the pallet wood price index from **** and stagnation in ****. In the fourth quarter of ****, the price index rose by **.*% compared with the index in the fourth quarter of ****.

Pallet production index France, ****-****, Base *** in **** Source: ****

4.3. Pricing structure

Wooden pallets sell in France for between €** and €** each, depending on quality, brand and size. Cardboard pallets vary in price from €* to €**. Prices for plastic pallets are much more variable, ranging from €** to €***. Metal pallets are more upmarket, selling for between €*** and €*** . The table below summarizes prices according to production material:

Source: ****

With inflation in wood prices and tensions in wood supply, the price of wooden pallets is approaching that of plastic pallets. Plastic pallets should therefore see their share increase. [***]

4.4. A mature market for innovation

Over the past ** years, players in the French pallet industry have mainly competed on the basis of volume/price strategies, as the market is highly price-sensitive. As a result of this price competition, players have tended to neglect R&D expenditure, and have consequently failed to develop innovative solutions. This phenomenon was further accentuated by the fact that, in the wake of the financial crisis, the main players slowed their R&D activity[***].

However, the market has now reached an inflection point, and major changes can be implemented to create long-term value by increasing pallet life cycles and product functionality.

First and foremost, wood recovery plays a key role in society's post-oil transition and in the emergence of new bio-based economies. When it comes to reducing carbon footprints, wood is a central material that can meet a number of needs, notably concerning the substitution of petrochemical products such as plastic

In ****, a round table organized by Sypal in partnership with Emballages Magazine and France Bois Forêt, brought together over *** professionals. The theme of the meeting was pallet management and use, with a focus on supply chain management in ****. Director of the International Management Institute for Logistics at the Swiss Federal ...

4.5 Pallet rental

Pallet rental can be a cost-effective choice for many companies. Starting at the manufacturer or distribution center, rented pallets move in one direction along the supply chain. Palletized loads are delivered to the end-user, and pallets are collected by rental companies when they are no longer needed. It's a closed-loop management program. These new rental companies also offer Internet tracking for pallet rental program customers[***].

The benefits of pallet rental programs:

For transportation:

Improved equipment utilization, Shorter lead times, Eliminates the need for the carrier to purchase or dispose of pallets, avoids pallet exchange disputes.

For manufacturers:

eliminates pallet purchase and repair costs, Fixed-rate pricing facilitates pallet cost budgeting, Supply pallets on demand, Reduced product damage through constant quality control and pallet repair, Open price negotiations with carriers due to the elimination of pallet exchanges, Improves customer relations by clarifying who is responsible for final pallets.

For distributors:

Reduces pallet costs by eliminating purchase and repair, Reduces product damage costs through quality pallets and repairs, Shorter turnaround times at dock doors thanks to no exchange or cherry picking, Improved pallet safety thanks to our consistently high quality platform.

For example, Magic Pallet is a French platform dedicated to the exchange of ...

5.1 Regulatory aspects

Pallets are subject to strict sanitary constraints, as they come into contact with products that may be destined for food consumption. The treatment of wooden pallets is therefore regulated to guarantee zero risk of contamination of goods. ISPM** treatment, a chemical-free heat treatment, meets national and European phytosanitary requirements[***].

For pallets and raw wood packaging over * mm thick to meet ISPM** standards, they must be stamped with a specific marking. The marking must be rectangular or square, within a frame made up of two parts:

The logo of the International Plant Protection Convention (***) on the left-hand side of the marking. FR : The ISO code of the country that carried out the treatment. In this example, the country is France. ZZ : The region code (***). ***** : Manufacturer's code. YY: The code corresponding to the treatment technique used: "HT" for heat treatment, "DH" for dielectric heat treatment or "MB" for methyl bromide fumigation.

Pallet treatment is also governed by the techniques used:

Conventional heating. This type of treatment involves heating the wood to a minimum temperature of **ºC for ** minutes. These pallets are marked with the code "HT" (***) Dielectric heating. This involves heating the wood in a microwave with a wavelength of *.** GHz for ** seconds, ...

6.1. Player segmentation

• Palette Gestion Services (PGS Groupe)
• Epalia
• Euro Pool Group (La Palette rouge)
• Josso
• Rotom
• Montbrisonnaise des bois Loire Palettes (Gallien)
• Palettes Artois Services
• Destampes Emballages
• Livra Bois (Gallien)
• Barbarie Groupe
• Scierie et Palettes Blanc (PGS Groupe)
• Celle Etablissements
• Francepal (Archimbaud Groupe)
• Burban Palettes
• CHEP (groupe Bramble)
• Faber Halbertsma group- IPP France
• Soflog Telis (CGA Supply Packing)
• Enviris