Sustaining Strength: Hardwood Markets and the Wooden Pallet Sector

The importance of hardwood markets cannot be overstated, especially considering that nearly a billion new wooden pallets are manufactured annually. The pallet industry consumes roughly 40% of all hardwood lumber production – or about 3.5 billion board feet of hardwood lumber annually. The durability, reliability, safety, and sustainability of hardwood pallets are essential to global logistics.

Softwood has gained substantial ground in wooden pallet manufacturing, accounting for 80% of the material now used and equivalent to 30% of all softwood lumber production, according to Forisk. Hardwood remains vitally important, and hardwood market supplies remain essential as partnerships and agreements help shape the future of our crucial sectors.

Hardwood: The Backbone of Wood Packaging
Wooden pallets play a crucial role in global logistics. Of all the materials used, wood stands out for its exceptional strength, sustainability, and ease of configuration. This is why, according to Modern Materials Handling, wood continues to dominate the pallet market at over 90% year after year.

Despite the rise of softwood alternatives, hardwood maintains a strong foothold in the market. This enduring preference underscores the significance of hardwood markets to the wood packaging industry, driving demand for species like oak, maple, and cherry.

Collaboration for Conservation
Ensuring the sustainability of hardwood resources is a priority and a responsibility that we share. Recognizing this, stakeholders in the wood packaging sector work closely with allied partners such as the NHLA to promote responsible forestry practices and forest management and collaborate on challenges and opportunities.

NWPCA President Brent McClendon recently joined a strategic planning session in Memphis with sixty hardwood industry leaders, association executives, and government representatives. The goal was to address sector challenges and opportunities through enhanced wood utilization, product innovation, and market development. Collaborating with organizations like NHLA, industry players work together to maintain healthy forests, balancing conservation efforts with sustainable wood sourcing.

One noteworthy development is the Memorandum of Agreement (MOA) between the US Forest Service and key industry representatives, including the National Wooden Pallet & Container Association (NWPCA) and the Hardwood Federation. Central to the MOA is creating an online carbon data platform to better understand and manage carbon sequestration in forests.

Over the last five years, the NWPCA has prioritized acquiring verifiable data on the sustainability of wood pallets. The NWPCA and the Pallet Foundation received funding to conduct a new lifecycle assessment and advance those efforts. The grant will help the NWPCA deliver a custom carbon calculator tool for businesses later this year.

Shaping a Sustainable Future
In a policy-driven global supply chain, industry cooperation and engagement are vital for thriving wood markets. Domestic and international policies can threaten the industry unexpectedly. NWPCA’s consultancy in Brussels secured policy wins in the new Packaging and Packaging Waste Regulation, preventing disruptions to the international flow of wood pallets and crates into the EU and protecting the entire supply chain, including hardwood providers.

Through collaboration and partnerships, stakeholders are safe-guarding hardwood resources and driving innovation and sustainability. By working together from forest to factory, the wood packaging sector can ensure a future where sustainability, economic viability, and stewardship go hand-in-hand.

By Annette Ferri,
National Wooden Pallet & Container Association Vice President, Communications