North America Pallet Market Outlook in 2022
The United States has seen a large increase in the pallet market in the last decade. In 2021 there was yearly volume of about 1,563.9 billion units. Partially due to supply chain bottlenecks and an increase in the freight sector, the market is expected to further grow between 2% – 5% between 2022 and 2028 to reach a volume of almost 2 billion units by 2028.
The market shares, plant production, increased capacities, investments, new facilities, and acquisitions are driving this increase in the market.
Some of the biggest names in the North American Pallet industry are:
- 48 Forty Solutions.
- ORBIS Corporation
- Kamps Pallets
Companies Specializing in Used Pallet Market:
- Used Pallet Recycling
- Verde Trader
- Wiley Pallet
A Pallet is defined as a wooden skid which is capable of shipping and storing heavy goods. Often requiring a forklift or pallet jack to move in the facility. The standard dimensions of a north american pallet is 48″ x 40″ . Typically having a 2-way or 4-way entry for the forklifts.
Stability, rigidity, and strength of the pallet is extremely important, which improves the safety and transportation of heavy bulk goods. Sometimes a 48 x 48 or 42 x 42 speciality pallet is required for moving heavier and bulkier goods
The increase in manufacturing and 3PL shipping warehouse activities in the United States is likely to drive the market growth. Plastic pallet market share may also increase due to demands from the food, beverage, medical, and pharmaceutical industry. Plastic pallets offer benefits over wooden pallets due to protection to insects, fungi, and various other pathogens.
Increased production levels in industries such as agriculture, chemical, food, recycling, construction and pharmaceuticals is driving the demand for used pallets. The growing expansion of the food manufacturing and medical industry is boosting the sales of high quality wooden pallets, which require high safety standards.
An increased awareness within freight and 3PL companies about the advantages of using wooden pallets has also effected the market, They attempt to have balance between cheap cost and high durability/reliability. The market is anticipated to be accelerated by the increasing industrial manufacturing activities in the United States due to investments in various industries and growing population.
Environmental Factors That Also Affect The Pallet Market
In 2022 we say an increase in natural disasters, such as forest fires and inclement weather. These factors play a role in current pallet supply and lead to supply chain issues and lower production. For new pallets to be produced saw mills must have lumber shipments to produce the wood needed to build the standard wooden pallets. In 2022 fires in Canada and the United States disrupted lumber and prevented companies from running at full capacity,
Supply Chain Issues That Also Affect The Pallet Market in 2023
2020 – 2022 there were wide range issues across the shipping and supply chain. Ports were backed up for months and this all cost manufactures of all kinds money and time. A rising cost of freight also led to an increase in pallet prices and shipping nationwide
Current Inventory in the Pallet Market
In 2022 many parts in the USA are still experiencing low inventories of 48″ x 40″ Used Grade A(#1) and Grade B(#2) Wooden Pallets also referred to as “cores”. We are seeing lower output than usual of these types of pallets in the current market. That being said many of the big players in the pallet industry are rushing to acquire more plants and produce more material.
This lower supply has led to higher prices across the united states for new pallets, recycled pallets, and reconditioned pallets. The costs to manufacture a standard has also gone up due to lumber, nail, and other cost increases. An increase in price for new pallets is leading to a large demand for cheap and recycled pallets.