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Summary and extracts

1 Market Overview

1.1 Definition and presentation

Pallets, or loading pallets (also colloquially referred to as platform, pallet or pallet) are equipment used to support various types of materials. They are intended to be stored in industries, moved with specific equipment such as forklifts and pallet trucks, and transported by various means of transportation. They are horizontal platforms that support goods and help hold them in place while being transported from one place to another using a front-end loader or forklift. The primary purpose is to speed up the handling of both bulk and individual goods; the secondary purpose is for utility and ease in warehouse management. Depending on the application, they can be made of various materials such as wood, plastic, metal, and so on. In Europe, the most popular dimensions are 1200x1500. The height from the ground and the structure of the base, which has 9 feet connected at the bottom in groups of three, are similar in these two types. The European Pallet Association e.V. (EPAL), established in 1991 as an organization for manufacturers and repairers of EPAL-branded pallets, is responsible for the quality of EPAL pallets placed on the market worldwide through an independent third-party inspection system. For non-EU, the pallets used are called Fitok pallets.

in 2023, the market was valued at $98.92 billion and is expected to grow steadily at a rate of 5.3 percent per year, reaching a value of $128.06 billion in 2028

In Italy, EPAL pallet production remained solid during 2020. Compared with the same half of the previous year, the change recorded was slightly negative with only a few tens of thousands fewer pallets placed on the market, compared with several million in Italian production. Pallet production is something of a benchmark for Italy to gauge the country's economic recovery, as the more production, the more pallet supply is needed. In Italy, one of the largest pallet manufacturers is Casadei Pallets. The lockdown has resulted in a significant reduction in the volume of FITOK-branded wood packaging going to non-EU countries.

Italy, like other European countries, is very active in terms of reusing and reconditioning used pallets. Used pallets do not necessarily have to be discarded, there are several techniques for reconditioning or disassembly and complete reuse of wood that save tons of C02 from wood processing.

1.2 World market

the global pallet market has seen steady growth in recent years, driven by the expansion of the logistics and supply chain industry globally. Pallets are a key tool for transporting and handling goods, and their use has increased in parallel with the expansion of e-commerce trade and industrialization in emerging markets. In addition, demand for reusable and more sustainable pallets has spurred innovations in the industry, with an increasing focus on the adoption of recycled materials and smart solutions for traceability.

in ****, the market was valued at $**.** billion and is expected to grow steadily at a rate of *.* percent annually, reaching a value of $***.** billion in ****. Each year marks a significant increase, with projections of $***.** billion in ****, $***.** billion in ****, $***.** billion in ****, and $***.** billion in ****.

World,****-****,Billion Dollars Research and Markets

1.3 European Market

the global pallet market and the European market are both following a steady growth trajectory, albeit at slightly different scales and rates. Globally, the value of the pallet market was $**.** billion in ****, with growth projected to reach $***.** billion by ****. In Europe, the market, while significantly smaller in absolute terms, shows a similar growth rate. The value of the European pallet market has increased from €*.** billion in **** and is expected to reach €*.* billion in ****. While the global market reflects the global increase in demand for logistics solutions, the European market shows more localized growth, linked to sustainability and innovation needs in the supply chain.

in ****, the value was €*.** billion, and at a compound annual growth rate (***) of *.** percent, the market will expand to reach €*.* billion in ****. Each year, the value increases gradually: *.** billion in ****, *.** billion in ****, *.* billion in ****, and *.** billion in ****.

Europe,****-****,Billion Euros TechNavio

italy is the European leader in pallet production, with a ** percent share of the European total. It is followed by Germany with **% of production, followed by France with **%. Spain contributes *% and the United Kingdom *%. The category "Others" (***) includes the other unspecified European countries, which together account for ** percent of total production.

Weight of major European countries ...

1.4 The Italian market

since there is no reliable and unambiguous source for the value of the Italian pallet market, we calculated this estimate by summing the production in euros of Ateco codes ******** (***), data obtained from ISTAT. To this total we added pallet import and subtracted export, using data obtained from UN Comtrade.

Comparing the Italian market with the world and European markets, we note that Italy represents a smaller portion of the global market, but continues to grow in line with the overall trend. In ****, the market was estimated at €*.*** billion and is expected to grow steadily to €*.** billion in ****.

Italy,****-****,Million euros Linker Report

the data in the graph below refer to the"Manufacture of wood packaging" sector, which includes: Manufacture of wooden crates, boxes, cages, cylinders and similar packaging manufacture of pallets, crate pallets and other wooden loading plans manufacture of casks, vats, tubs and other wooden products and parts for cooper work manufacture of wooden cable drums In ****, sales were *.** billion euros, a figure that remained almost stable in **** at *.*** billion euros. In ****, likely due to the pandemic and its economic consequences, turnover dropped to *.** billion euros. However, there was a significant recovery in ****, with turnover reaching *.** billion. In ****, there ...

1.5 Import and Export

The data in the graphs below refer to"loading pallets, plain, pallet-cases and other loading platforms, of wood; pallet espaliers, of wood." [***]

From **** to ****, a growth in imports is observed, starting at $***.* million in **** and peaking at $***.** million in ****, before falling to $***.* million in ****. Exports, on the other hand, remain more restrained and show a less volatile trend: from ***.** million in ****, they decline slightly to **.** million in ****, but rise again to ***.** million in ****.

The coverage ratio decreases gradually from **** (***), then rises steadily to *.** in **** and ****

Imports and exports of Pallets, Code (***) Italy,****-****,million dollars UN Comtrade

poland is by far the largest supplier, with $***.** million, followed by Germany (***). Poland, with more than three times the value of Germany, clearly dominates Italian pallet imports.

Countries from which Italy imports the most pallets Italy,****,Million UN Comtrade germany is the top recipient with $**.** million, followed closely by France with $**.** million. Spain is in third place with **.** million, while Belgium (***), receive smaller quantities of Italian pallet exports. Germany and France clearly dominate exports, with much higher values than the other countries. Countries to which Italy exports the most pallets Italy,****,Million UN Comtrade

2 Demand analysis

2.1 A market dependent on freight traffic

The main driver of pallet manufacturers' business in Italy is freight traffic, especially road traffic. Changes in the volume of goods transported by truck in the country can have a significant effect on demand and thus on the turnover generated in the pallet industry in Italy.

In ****, freight was *** million tons, followed by a decrease to *** million in ****. After a slight increase in **** (***), more substantial growth is observed in ****, peaking at *,*** million tons, likely due to a post-pandemic recovery. In ****, the figure stands at *,*** million tons, marking a **.* percent decline from the previous year, but still above pre-**** levels.

Goods transported in the country Italy, ****-****, in million tons Source: ****

The data shown in the graph below refer to the"transport of goods by road" sector in Italy ATECO "**.**.**," which includes:

the transport of timber, transport of livestock, refrigerated transport, heavy transport, transport of bulk products, including tanker transport and milk collection on farms, transport of cars the activity of waste and residue transportation carried out by enterprises that do not carry out collection and disposal activities the rental of trucks with drivers the transport of goods by cable car the transport by concrete mixer truck

In ****, the turnover was **,*** million, ...

2.2 Demand in terms of production

We also wanted to analyze the demand of the Pallet market from a production perspective to get a more complete view of the industry. Between **** and ****, the production sold of plain cargo pallets and pallet backers in Italy decreased by **.* percent, from ***.** million pieces to **.** million. After an initial peak in **** with ***.** million pieces, production dropped in **** and ****, then rose slightly in **** to **.** million. However, a further significant drop occurred in ****, reflecting a marked decline from pre-pandemic levels.

Production sold in quantity - p/s of plain cargo pallets, pallet espaliers Italy,****-****,Number of pieces Istat

As for the production sold of pallets, crates, and other loading platforms, there is a **.* percent decrease between **** and ****, from **.** million pieces to **.** million. After peaking at **.** million in ****, production declined sharply, with a **.* percent decrease in **** from the previous year, followed by a further **.* percent decrease in ****. This trend shows a significant reversal from the peak in ****. Production sold in quantity - p/s of Pallets - crates and other loading platforms Italy,****-****,Number of pieces Istat

2.3 New demand trends for pallets (Sustainability)

From **** to ****, the amount of packaging remanufactured and returned to consumption in Italy increased by **.* percent, from ***.* thousand tons to ***.* thousand tons. After growing steadily from **** to ****, peaking at ***.* thousand tons, the volume declined slightly in ****, then rose again slightly in ****, maintaining higher levels than at the beginning of the period.

Tons of packaging remanufactured and reused for consumption Italy,****-****,Thousands of Tons **** Report

The majority are new pallets, which account for **.** percent of the total, followed by remanufactured pallets, which make up **.** percent. Industrial packaging accounts for **.**%, while reels and staves reach *.**%. Smaller categories include fruit and vegetable packaging (***) and other materials, which together account for *.** percent. Packaging released for consumption by category Italy,****,percentage **** report

2.4 Online interest in "Pallet"

values are calculated on a scale of * to ***, where *** indicates the location with the highest frequency of searches as a proportion of total searches at that location, and a value of ** indicates a location with half as many searches. The value *, on the other hand, indicates a location for which insufficient data has been collected.

In October ****, the index starts from a value of **.*, remaining around ** until November. Between December **** and February ****, a decline is observed, reaching a low of **.* in December. Interest rises rapidly in March **** with a peak of **, followed by a gradual decline in the following months, touching ** in August ****. In September ****, there is another low at **.*, followed by a new recovery in October ****, with the index reaching **.

Trend of online interest in the topic "Pallet" Italy,****-****,Google Trends Index Google Trends

It is shown that Friuli-Venezia Giulia and Veneto are the regions with the highest level of interest (***) show less interest than those in the north, highlighting a clear geographic distribution in which northeastern Italy has the highest interest in the term "Pallet."

3 Market structure

3.1 Italian enterprises

The following data always refer to the"manufacture of wood packaging" sector (***).

In ****, the number of enterprises was *,***, which increased in **** to *,***. In ****, there is a slight decrease to *,*** enterprises, followed by an increase in ****, with *,*** active enterprises. In ****, the number decreased slightly to *,***. Overall, a growth of *.* percent is observed between **** and ****.

Active enterprises in the Manufacture of wood packaging Italia,****-****,Migliaia Istat;Companies Register

In ****, there were **,*** employed, increasing to **,*** in **** and **,*** in ****. In ****, there is a more pronounced growth, reaching **,*** employed, and in ****, the number continues to increase, reaching **,***. Overall, between **** and ****, employment in the industry grew by ** percent. Employment in the Manufacture of Wood Packaging Italia,****-****,Migliaia Istat Looking instead specifically at all companies operating in the sector, regardless of the Ateco code under which they are registered, we note that, in ****, there are *** manufacturers, accounting for **.** percent of the total, a slight decrease of one unit from ****. Processors are divided into three subcategories: food packaging manufacturers and importers decreased from *** in **** to *** in **** (***), representing *.** percent of the total. Manufacturers and importers of industrial packaging decreased by ** from *** to ***, accounting for **.** percent of the total. In contrast, pallet manufacturers and importers and pallet repairers increased ...

3.2 The value chain

The pallet value chain covers all stages from initial design to post-use management, adding value at each step to optimize logistics and transportation processes. The first step is design and development, where pallets are created considering industry-specific requirements, such as material choice and durability. Material options include wood, plastic, metal, or composites, with an increasing focus on sustainability. Next, sourcing of raw materials takes place, such as FSC- or PEFC-certified wood to ensure the sustainability of the resources used. Sourcing logistics is a critical part of keeping the manufacturing process smooth.

The manufacturing and assembly phase involves the processing of raw materials to create pallet components, followed by automated or semi-automated assembly, ensuring that pallets meet quality and strength standards. Strict quality control ensures that each pallet is safe for use. Once completed, the pallets are ready for distribution, which involves sending them to logistics centers or directly to customers. Some manufacturers offer rental services, allowing companies to reduce operating costs and optimize inventory management.

When pallets come into use, they find application in a wide range of industries, such as logistics, food, pharmaceuticals and manufacturing. Pallet fleet management is crucial to improving logistics efficiency and minimizing costs, especially through pooling ...

3.3 The main market players

Palm S.p.A.

Palm S.p.A., founded in **** in Viadana (***), specializes in the production of wooden pallets and packaging, with a strong focus on sustainability. The company, a pioneer in the industry, was the first to achieve B Corp certification in ****, standing out for its environmental and social commitment. It uses wood from PEFC- and FSC-certified forests, promoting a traceable and responsible supply chain. Recently, Palm received the EcoVadis Gold award for ESG performance and is among the top *** Italian companies in the Sustainability Award ****.

Sartorilegno S.r.l.

Sartorilegno S.r.l., founded in **** in Fondo, Val di Non (***), specializes in the production of wooden pallets and packaging, with a focus on sustainability. The company has two main plants, one in Fondo and another in Mezzolombardo, and uses mainly locally sourced wood to ensure quality and traceability. In addition to pallets, it produces biomass and pellets, which are used to generate clean energy. Sartorilegno is certified to standards such as ISO ****, PEFC and ISPM ** to ensure compliance with international regulations.

Toscana Pallets S.r.l.

Toscana Pallets S.r.l., founded in **** and based in Bientina (***), is a leading manufacturer of wooden pallets. The company uses advanced technologies ...

4 Supply analysis

4.1 Product overview

The different categories of pallets

ATuttoPallets

The different categories of wood pallets

Over time, some sizes have become standardized. The following table summarizes the main sizes:

ATuttoPallet

4.2 Prices charged in the market

Wooden pallets are sold in Italy between ** and **€ each, depending on quality, brand and size. The price of cardboard pallets ranges from *€ to **€. The price of plastic pallets is much more variable as they are sold between **€ and ***€. Metal pallets are more sophisticated and are sold between ***€ and ***€. The table below summarizes the prices according to the material of production:

More prices.co.uk;Chem Orbis

Regarding inflation trends, pallet prices in Italy are still rising slightly from **** due to the following factors:

Demand is very strong Sawmill capacity is saturated The construction sector is growing Road transportation costs are rising Export flows to China and the United States are growing

Producer prices

Wood pallets with dimensions ***x** cm are priced between ** and ** euros new, while the price for used is between * and ** euros. For ***x*** cm wooden pallets, new prices range between ** and ** euros, and for used between * and ** euros. Wooden pallets of ***x*** cm have a new cost of **-** euros and a used cost of *-* euros.

Plastic pallets of ***x** cm cost between ** and ** euros when new, and between ** and ** euros when used. Those of ***x*** cm are priced at **-** euros new and **-** euros used. ...

4.3 Raw material prices, production and operating costs

Production costs of wooden pallets

The production cost of wooden pallets depends on the same indicators as the production cost of other wooden packaging. The price of wood, the main material of pallets, accounts for ** percent of the cost of manufacturing a pallet. A study by CEEB (***) is estimated at ***€ per cubic meter in ****.

The table below summarizes the methodology used to estimate the cost of producing a pallet.

The price of wood

As can be seen in the graph below, the price of wood is a very volatile price, which has fluctuated widely over the past year (***). It cost $****.** USD/**** FBM in April ****, et $***.** USD/**** FBM in April ****, for a change of -**.*% in one year.

FBM, foot board measure, is a specific unit of measurement for lumber volume and corresponds to the volume of one square foot and one inch thick.

Timber price World, ****-****, USD/**** board feet Source: ****

For fir, the price decreased from ***.* euros in **** to ***.* euros in ****, then increased significantly to ***.* euros in **** and peaked at ***.* euros in ****. In ****, it fell to ***.* euros, with a further decline expected in **** to ***.* euros.

The price of pine followed a similar trend, starting at ***.* euros in ****, dropping slightly to ...

4.4 New trends in the pallet industry

Emerging trends in the pallet market are seeing a strong focus on innovation, sustainability and advanced technology. One of the major trends is the adoption of tracking technologies such as RFID and QR codes to monitor pallets along the supply chain, ensuring efficient management and increased security of transported goods. This innovation enables companies to optimize logistics and reduce handling time

In addition, the use of plastic pallets is increasing for compliance and sustainability reasons, although wood remains dominant. About ** percent of companies are keeping the use of plastic pallets stable, with ** percent expecting an increase in the coming years. Another important trend concerns the growing preference for used or recycled pallets, which now account for ** percent of the market, in response to environmental and availability challenges.

Pallet customization is also becoming essential, with companies demanding flexible solutions to meet specific needs. This includes producing pallets with particular dimensions or unique load requirements for different industries, thus improving operational efficiency and reducing costs.

5 Regulations

5.1 Regulations on the transportation of pallets

Pallets are subject to strict sanitary constraints because they are in contact with products that may be intended for food consumption. Therefore, the treatment of wooden pallets is regulated to ensure zero risk of contamination of the goods.

ISPM** treatment, a chemical-free heat treatment, meets national and EU phytosanitary requirements. ISPM** is a phytosanitary measure introduced in **** by the Food and Agriculture Organization of the United Nations. It obliges countries that belong to the International Plant Protection Convention to comply with a set of phytosanitary procedures. This measure aims to reduce the risk of organism proliferation in international trade by using raw wood packaging. Raw wood must undergo specific treatment and marking so that the world can identify whether the commodity is suitable for export and import to specific countries.[***]

For a raw wood pallet and packaging over * mm thick to comply with ISPM**, it must be stamped with a specific marking. The marking must be rectangular or square and must be within a two-part frame:

The International Plant Protection Convention (***) logo on the left side of the marking. EN: The ISO code of the country that carried out the treatment. **: The regional code (***). *****: The manufacturer's code. HT: The code corresponding ...

5.2 Other regulations

The treatment of pallets is adjusted according to the techniques used:

Conventional heating. This type of treatment consists of heating the wood to a minimum temperature of **ºC for ** minutes. These pallets are marked with the code "HT" which stands for Heat Treated in English. Dielectric heating. This involves heating wood in a microwave with a wavelength of *.** GHz for ** seconds until a temperature of **ºC is reached. When pallets are treated with this procedure, they are also marked with a "DH" code, which stands for Dieletric Heating in English. Fumigation. This is a methyl bromide fumigation treatment; the wood is fumigated with CH*Br. Methyl bromide is a pressurized liquid that turns into a gas when it is released after heating. However, the use of methyl bromide has been banned in Europe since ****.[***] Old pallets that have been treated with methyl bromide are marked with the code "MB" which means Methyl Bromide in English.

The Italian standard for pallets is UNI EN ***** and was developed by Uni, the Italian national unification body.

In Appendix C of that one, a number of characteristics are given that make pallets unusable in pallet racks:

Cracks on the top boards for more than half ...

6 Positioning of actors

6.1 Positioning of actors

  • Toscana Pallets
  • Chimar SPA
  • Casadei Pallets
  • Sartorilegno
  • Sacchi Pallets

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