Wood Packaging Market Report 2026

The wood packaging market size has grown strongly in recent years. It will grow from $12.82 billion in 2025 to $13.58 billion in 2026 at a compound annual growth rate (CAGR) of 5.9%. The growth in the historic period can be attributed to growth in agricultural produce transportation, expansion of global trade activities, rising use of pallets in logistics operations, availability of hardwood and softwood resources, increasing preference for durable packaging materials.

The wood packaging market size is expected to see strong growth in the next few years. It will grow to $17.39 billion in 2030 at a compound annual growth rate (CAGR) of 6.4%. The growth in the forecast period can be attributed to rising focus on circular packaging solutions, increasing adoption of reusable logistics packaging, growing demand from food and beverage exporters, expansion of sustainable packaging regulations, rising investments in automated pallet production. Major trends in the forecast period include increasing adoption of reusable and returnable wood packaging, rising demand for custom-designed pallets and crates, growing use of certified sustainable wood materials, expansion of lightweight and high-strength packaging designs, enhanced focus on food-grade and hygienic packaging solutions.

The rising popularity of sustainable and environment-friendly packaging is expected to propel the wood packaging market. Sustainable packaging refers to eco-friendly material used to ship, wrap, and store products. Consumers across the world are showing interest in sustainable packaging that is recyclable and environmentally friendly, and wood packaging is one of the sustainable packaging alternatives. For instance, in September 2024, according to the Department for Environment, Food & Rural Affairs, a UK-based government agency, an estimated in 2023, the recycling rate for packaging waste in the UK rose to 64.8%, up from 62.4% in 2022. Therefore, the rising popularity of sustainable and environment-friendly packaging drives the wood packaging market.

Strategic collaborations are a focal point for major companies in the wood packaging market, allowing them to gain a competitive edge, expand their market presence, and introduce innovative products to meet evolving customer needs. In May 2023, Blue Ocean Closures, a Sweden-based developer of bio-based, ocean-biodegradable, and recyclable packaging, partnered with Stora Enso, a Finland-based provider of renewable products, to create the 'first ever' paperboard tube with a fiber-based closure comprising more than 85% fibers. This wood fiber-based approach is expected to enable brand owners to increase the proportion of renewable materials in their packaging. The paperboard tube, applicable in various sectors such as personal care and cosmetics, represents an environmentally friendly alternative with a significant focus on sustainable practices.

In November 2023, Conner Industries, a US-based industrial wood and packaging solutions provider, acquired Denver Reel & Pallet Company, marking Conner's initial investment in the Rocky Mountain industrial packaging market. This strategic move aims to enhance Conner's integrated package footprint by incorporating foam, wood, plastic, corrugate, and adhesive tapes. Denver Reel & Pallet Company, a US-based wood packaging company specializing in custom wooden crates, pallets, and pallet collars, adds value to Conner's portfolio with its expertise in shipping, storage, and handling solutions.

Major companies operating in the wood packaging market are Brambles Ltd., CHEP, PalletOne Inc., Kamps Pallets Inc., Pallet Logistics of America LLC, Pallet Central Enterprises Inc., Arrington Lumber and Pallet Co., Pal-Con Ltd., Universal Forest Products Inc., UFP Industries Inc., Rowlinson Packaging Ltd., Shur-way Group Inc., Nefab AB, Hemant Wooden Packaging, Spruce Pax Private Limited, SHREE SAIRAM INDUSTRIAL CORPORATION, Rajat Packers, Totre Industries, InterAgra s.c., Falkenhahn AG, Greif Inc., Mondi Group, Stora Enso, Cox Co, PackXpert India Private Limited, C&K Box Company Inc.

North America was the largest region in the wood packaging market in 2025.Asia-Pacific is expected to be the fastest-growing region in the global wood packaging market report during the forecast period. The regions covered in the wood packaging market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the wood packaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The wood packaging market consists of sales of wooden reels and drums. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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