Why the price of white wood pallets has increased so dramatically (and will continue to do so) (2024)

FAQs

Why the price of white wood pallets has increased so dramatically (and will continue to do so)? ›

As the world adapted to supply-chain challenges, rental pallets became increasingly scarce, exacerbated by temporary facility closures at Chep. Distribution ecosystems were compelled to immediately convert their pallet purchases to new and used “white wood” pallets.

Increasing demand, decreasing supply

The easiest explanation: the demand for wood has increased, but the supply has decreased. The demand for wooden pallets is increasing.

Since the onset of the pandemic, supply chains have been plagued with material, fuel, and labor shortages – it is no surprise they are experiencing an acute wood pallet shortage as well.

Wood Pallet Market Insights

Global Wood Pallet Market size was valued at USD 0.94 billion in 2022 and is poised to grow from USD 1.00 billion in 2023 to USD 1.70 billion by 2031, growing at a CAGR of 6.8% in the forecast period (2024-2031).

Pallet sizes will always play a major role in determining the sellback value of your used pallet supply, and the general rule here is that standard sizes like 48×40 and 48×45 will have higher sellback values as compared to custom sized pallets that are less useful for other businesses.

The treatment designation that you should be the most cautious of is "MB." This stands for Methyl Bromide. Pallets with an MB stamp have been treated with a highly toxic pesticide which can be necessary in certain regions of the world where there are pests that can't be eliminated by heat treatments.

While plastic pallets offer similar benefits, wire mesh is often more affordable for those operating under a strict budget.

The Global Wood Pallet market is anticipated to rise at a considerable rate during the forecast period, between 2024 and 2031. In 2023, the market is growing at a steady rate and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon.

Cost of Wooden Pallets

New standard size (48″ x 40″): $11.25 – $12.50. Recycled standard size: $4.25 – $7.40. Heavy-duty block pallets: $25.00 or more.

Do people make money selling pallets? ›

Though it may seem random, starting a business picking up and selling used pallets has helped make several individuals serious money. And it can work for you, too. This article will walk you through everything you need to know to get started selling wooden pallets for a profit.

New wooden pallets have an average life cycle of about three years, but that can be shortened or extended depending on the care. The life span of a recycled wood pallet is usually shorter, as they don't have the same level of durability and strength.

Keep in mind that profits in the U.S. pallet industry are normally 10% or less. And in some cases, the profit margin is less than 5%. Do not use benchmarks from other industries when conducting financial analysis. The U.S. pallet sector is one of the most competitive industries in terms of price sensitivity.

Most Popular US Pallet Sizes

Below are ways you'll most often see these popular pallet sizes used: 48x40 in Grocery and general warehouse. 42x42 in Telecom; technical coatings and paint. 48x48 in Fits four 55 gallon drums without overhang.

While there is the possibility of a high profit margin, Amazon pallets can also have a couple of downsides. The quality of the items can vary, and this affects resale value. Not knowing what's in the boxes is exciting, but it can also be disappointing. You may also end up with items in an oversaturated market.

Selling products from pallets gives you a profit margin around 30-40% per sale. Liquidation pallets should contain, on an average, 70% products in functional condition ranging from “as new” to “dented” or “scratched” product condition levels.