Pallets: U.S. demand for pallets to reach 1.3 billion units in 2015

Freedonia Group sees turnaround in demand as manufacturing increases.

By ·

U.S. demand for pallets is forecast to rise 6.1 percent per year to 1.3 billion units in 2015, valued at $15 billion. The increase will be driven by a rebound in manufacturing output.

That’s the conclusion of “Pallets,” a new study from The Freedonia Group, (http://www.freedoniagroup.com) a Cleveland-based industry market research firm.

This pace will represent a dramatic turnaround from the 2005-2010 period, when demand fell to fewer than one billion pallets in response to a decline in manufacturing output between 2007 and 2009 and a partial rebound in 2010.  Through 2015, demand gains will be driven by an expected advance in manufacturing from the low 2010 base.

Some key points of the study include:

Manufacturing will continue to account for the largest share of pallet demand, totaling 75 percent of the market in 2015, according to Freedonia. 

• Demand will be supported by continued recognition of the suitability of pallets as an inexpensive way of shipping and hauling goods while avoiding product damage. 

• Providers of warehousing services will purchase new pallets and expand their pallet refurbishing operations to add to their pallet stocks and more effectively serve existing customers.

• Pallet stock growth will be driven by the increase in manufacturing activity as the U.S. economy rebounds from the 2007-2009 recession. 

• Growth in shipping activity will spur demand for pallets to transport and store goods. 

Plastic pallets will account for a larger share of the U.S. pallet stock in 2015. Plastic pallet demand is projected to advance at a double-digit pace through 2015, rising to 34.5 million units.  Demand will be driven by consumer interest in the use of plastic pallets because of their performance qualities.  They are resistant to contamination caused by bacteria and other pathogens and can be cleaned easily.  Plastic pallets are also seen as being environmentally friendly, as they can be recycled once they have reached the end of their life span.

• Still, plastic pallets will represent just 2.65 percent of the overall pallet market in 2015. 

Despite an increase in the market for plastic pallets, pallets made from wood—primarily lumber—will continue to account for nearly 95 percent of the U.S. market.  Demand will be driven by the new pallet market, as manufacturers’ shipments rebound and more pallets are needed to ship and haul products.  However, refurbished wood pallets, which accounted for 65 percent of the wood pallet market in 2010, will continue to lead the market in 2015. 


Pallet report from ProMat
Here’s a rundown of some of the latest new products and innovations unveiled by pallet makers at ProMat 2011.


Subscribe to Modern Materials Handling Magazine!

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Article Topics

Packaging · Pallet Report · Pallets · · All Topics
Latest Whitepaper
Sorting Out Your Sortation Options
Guiding you through the process of evaluating and selecting the right “mission-critical” sortation solution
Download Today!
From the April 2017 Issue
How does a fastgrowing, e-commerce startup company build out order fulfillment capabilities? Thrive Market answered that question with its new facility in Indiana.
2017 Warehouse/DC Equipment Survey: Investment up as service pressures rise
Putaway 101: Everything in its Place
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2016 Warehouse/DC Operations Webcast: Confronting omni-channel complexity
During this webcast we’ll examine the current activities, trends, and best practices in warehouse and DC operations management and how companies plan to address complex issues associate with omni-channel fulfillment.
Register Today!
EDITORS' PICKS
ProMat closes: Make your plans for Modex 2018
With a record number of exhibitors and attendees seen at ProMat 2017, MHI anticipates more of the...
Keynote: Magic is the result of over-preparation and over-delivering to customers
During his keynote presentation Wednesday afternoon, Earvin “Magic” Johnson told a packed...

Keynote panel confirms digital supply chain shift seen in new MHI study
Wednesday’s keynote panelists agreed it is time to embrace the shift to digital supply chains seen...
MHI to honor original products, solutions with 5th-annual Innovation Awards
On Wednesday, during MHI Industry Night with Dana Carvey, the winners of the 5th-annual MHI...