Pallet Prices Explained

In 2025, pallet prices vary by region, material, and whether they are new or recycled. In the U.S., standard 48×40 GMA wood pallets sell for a USD 12–25 range per unit, depending on grade and location; some distributors quote USD 15–30 for new and USD 5–15 for used pallets.

Fastmarkets data shows regional spot prices. In late May 2025, new softwood GMA pallets delivered to Seattle sold for USD 11.00–16.50 per pallet in late May 2025, with used pallet prices remaining stable in West Coast markets.

The U.S. Producer Price Index for wood container and pallet manufacturing rose from 184.14 in February 2025 to 186.68 in June 2025 (index base: Dec 2003 = 100). This indicates slight cost increases for finished pallets.

These price differences come from lumber costs, export treatment requirements, transportation, and regional demand cycles.

Why are Pallet Prices Fluctuating?

1. Lumber & Treatment Costs

Most pallets use softwood or low-grade hardwood. Higher lumber prices, driven by housing demand or trade rules, increase pallet costs. Export wood pallets must meet ISPM-15 heat treatment (at least 56 °C for 30 minutes) or fumigation rules. These steps add cost and can cause capacity limits.

2. Regional Supply–Demand & Seasonality

Retail peaks such as holidays and early-year restocking can reduce pallet supply in some regions, such as the U.S. West Coast. This can push delivered prices higher within the published ranges.

3. Logistics, Labor & Return Cycles

Fuel, freight, and labor affect delivered pallet prices. In pallet pooling systems such as CHEP, slower returns or higher loss and damage rates raise system costs, which may be passed to users.

4. Material Mix & End-Market Requirements

Some industries, such as food and pharmaceuticals, require specific pallet types like block pallets, plastic pallets, or higher-grade pallets. These types often cost more than standard stringer pallets.

Which Variables Impact the Price of Pallets?

• Wood Costs – Lumber price changes (including tariffs or supply shortages) directly affect wood pallet costs.
• Labor & Production Costs – Wages, manufacturing efficiency, and repair/recycling costs influence pricing.
• Transportation Costs – Fuel prices and shipping distance affect delivered pallet costs.
• Demand & Seasonality – Retail peaks, exports, and industrial activity raise demand, pushing prices up.
• Compliance & Treatment Requirements – Heat-treating or fumigation for export (ISPM-15) adds cost.

Where Do Pallets Come From?

Most pallets are made from wood, either softwood or low-grade hardwood. Plastic and other materials are used when hygiene or durability is important. The United States and China produce the most pallets, reflecting their large domestic logistics needs.

The Asia-Pacific region has the largest market share. Export shipping with wood pallets requires ISPM-15 treatment and marking. This means heating to at least 56 °C for 30 minutes. In the U.S., APHIS and ALSC oversee these treatment programs.

What are the Uses of Pallets?

1. Unit-Load Handling in Warehouses – Pallets are the main platform for forklifts and pallet jacks in distribution centers and manufacturing sites. In the U.S., about 1.8–2.0 billion pallets are in use daily, with wood as the most common material.

2. Export Shipping – ISPM-ISPM-15-compliant wood pallets are required for most international trade. Heat treatment and marking are mandatory for cross-border shipments.

3. Food, Beverage & Pharma – These industries prefer clean, consistent pallets. Many use pooled or plastic pallets to meet hygiene and audit standards.

4. E-commerce & Automation – Pallet specifications must fit racking and automated storage/retrieval systems (ASRS). Block pallets and high-grade pallets help reduce jams and downtime.

5. Pooling (“Pallet-as-a-Service”) – Pooling networks rent pallets, collect them after use, inspect them, and return them to circulation. This reduces customer capital expenses and improves pallet availability.

6. Circular Economy & Recycling – Extensive repair/reuse keeps wood pallets out of landfills at very high rates.

What is the Future Price of Pallets?

for a standard wood pallet. New pallets are priced higher and used pallets lower. On the West Coast, new softwood GMA pallets are priced at USD $11.00–16.50 . The U.S. Producer Price Index for pallet manufacturing has increased slightly in 2025, showing modest cost pressure. Possible tariffs on softwood lumber could raise lumber costs, which would increase pallet prices.

Price Outlook for 2027-2030 (U.S., standard 48×40 wood pallet, typical street pricing):

• 2025: Estimated USD $87.5–99.5 billion global market size
• 2026: Projected USD $92–105 billion global market size (CAGR 4.37–5.29% from 2025 base values)
• 2027: Projected USD $97–110 billion global market size
• 2028: Projected USD $102–115 billion global market size (continuing CAGR trend)
• 2029: Projected USD $107–120 billion global market size (continuing CAGR trend)
• 2030: Estimated USD $114.5–123.2 billion global market size