TIMCON highlights mounting pressures on pallet & packaging sector

Regulatory changes, supply constraints, rising fuel prices, broader cost pressures, and ongoing economic uncertainty are set to create some of the most challenging conditions for the wood pallet and packaging sector in the year ahead.

TIMCON President John Dye with speakers and attendees at the TIMCON general meeting, March 2026

Speakers at the recent Timber Packaging & Pallet Confederation (TIMCON) general meeting, held in Manchester in early March, provided updates on forthcoming compliance obligations – including the EU’s Packaging and Packaging Waste Regulation (PPWR) and Extended Producer Responsibility (EPR) – as well as insights into UK and global economic trends, timber supply, and the potential impact of emerging conflict in the Middle East.

Nikhil Varghese, Director of Global Advisory and EU Affairs at DGA Group, told the meeting that PPWR is expected to be enforced from August this year and will apply to all forms of packaging, including wooden pallets, export packaging, cable drums, and lightweight packaging.

He added that packaging will need to be designed for recycling by 2030, while at least 40% of transport packaging should be reused by the same year—an “aspirational target” that is set to increase to 70% by 2040.

“By 1 January 2030, 100% of transport packaging used within the same EU member state and for intra-company use should be reusable, so it’s a significant topic of discussion in the EU right now,” he said.

Varghese outlined current and potential exemptions for wooden packaging, based on its strong sustainability credentials, but stressed the importance of continued industry engagement to ensure these are reflected in future policy decisions affecting market access.

“As a wood industry, we have a big role to play in helping the Commission understand the recyclability of wooden packaging. Design-for-recycling criteria developed for plastics should not simply be applied to wood, as has often been the case,” he said. “It is key that we define a joint industry position.”

The meeting also included updates on UK, European, US, and global wood markets.

Jason Ortega, Senior Vice President of the National Wooden Pallet & Container Association (NWPCA), outlined the organisation’s rebrand to Woodpack Global. The move reflects its increasingly international membership – now more than 400 members across 43 countries – and aims to strengthen engagement with policymakers worldwide.

“The supply chain is global,” he said. “It really doesn’t matter where you’re based – your pallet can end up anywhere.”

Ortega identified uncertainty as the biggest issue currently affecting businesses, contributing to subdued investment, slower housing construction, and weakened manufacturing demand. He added that tariffs and other policies have further complicated trading conditions and intensified price competition.

Nick Boulton, Head of Technical and Trade Policy at TDUK, provided an update on trade and availability, including the potential re-entry of Canada as a supplier to the UK market following the loss of Russian timber, and the impact of around 10 million m³ of storm-felled timber potentially entering pallet markets.

Rob Driessen, owner and managing director of specialist pallet and packaging wood procurement firm Connec3, discussed wider market influences. With growth returning to the Eurozone, Asia, and the US, he expects demand to increase in the coming months, placing further pressure on already constrained supply.

“If demand continues to recover, supply will not be able to keep up, and that will impact both price and availability,” he said.

TIMCON President John Dye said: “This was an extremely valuable meeting, covering a wide range of critical issues for the wood pallet and packaging sector – from the growing burden of regulatory compliance to challenging market dynamics and economic headwinds.

“It highlighted how interconnected these issues are and how important it is for the industry to come together, share information and present a unified voice.”

During the meeting, TIMCON also launched new awards for the pallet and packaging sector, which will be presented at its AGM in Edinburgh in September.

For further information, see www.timcon.org.