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Knowledge Center

Understanding the Pallet Industry

The pallet industry is a $30+ billion global market that underpins virtually every supply chain in the world. Whether you are new to pallets or an experienced logistics professional, these foundational insights will help you make better purchasing decisions and optimize your pallet strategy.

Pallet Sizing Quick Reference

Choosing the right pallet size is critical for maximizing warehouse space, optimizing truck loads, and ensuring product stability during shipping. The wrong size can lead to wasted space, unstable loads, and higher transportation costs. Here are the most commonly used pallet sizes in the American market and their primary applications.

48" x 40"

GMA Pallet

The industry standard used by 30% of all pallets in the US. Required by most grocery, retail, and consumer goods distributors. Fits standard racking and truck dimensions.

42" x 42"

Telecom / Paint

Standard for telecommunications equipment, paint cans, and chemical drums. Optimized for round containers and square footprint storage.

48" x 48"

Drums / Barrels

Ideal for 55-gallon drum shipping and large, heavy industrial products. Provides maximum surface area for bulky items.

48" x 42"

Chemical / Beverage

Common in chemical manufacturing and beverage industries. Slightly wider than GMA for products that need extra support width.

40" x 40"

Dairy

Standard in dairy processing and distribution. Square footprint provides equal support on all four sides for stacking.

800 x 1200mm

Euro Pallet

International standard used extensively in European trade. Essential for businesses with import/export operations to EU markets.

Pallet Grading Explained

Used pallets are classified by grade, which reflects their physical condition and suitability for different applications. Understanding grading helps you select the right pallet for your needs without overpaying for a higher grade than necessary or risking product damage with a grade that is too low.

Grade A

(Premium / Like-New)

Grade A pallets are in excellent condition with minimal cosmetic wear. All boards are intact, nails are fully seated, and dimensions are within tight tolerances. These pallets are suitable for retail-facing shipments, automated warehouse systems with strict dimensional requirements, and applications where appearance matters. They have typically completed only 1-3 shipping cycles.

Grade B

(Standard / Good Condition)

Grade B pallets show moderate use with some cosmetic wear, minor staining, or slight board discoloration. They are structurally sound and fully functional for standard shipping and warehousing. This is the most popular grade for everyday business use — it offers the best balance of quality and value. Ideal for non-retail shipments and general storage.

Grade C

(Economy / Repaired)

Grade C pallets have visible wear and may include repairs such as replaced boards or re-nailed sections. While cosmetically imperfect, they meet all structural requirements for safe load bearing. These pallets are the most economical option and are ideal for one-way shipping, heavy industrial use, export shipments, and applications where appearance is not a concern.

Combo

(Mixed Grades)

Combo loads contain a mix of Grade A, B, and C pallets loaded together for maximum value. This is a cost-effective option for businesses that can work with varying pallet conditions. Combo loads are popular with recyclers, resellers, and businesses with non-critical pallet requirements that want the lowest possible per-unit cost.

Industry Insights

Pallet Industry Trends & Data

Staying informed about market trends helps you make smarter purchasing decisions and plan your pallet strategy for the future. Here is a snapshot of the key trends shaping the pallet industry today.

Market

Lumber Price Volatility

Raw lumber prices have experienced significant volatility in recent years, driven by supply chain disruptions, housing market demand, and international trade policies. This directly impacts new pallet pricing and makes recycled pallets an increasingly attractive cost-stable alternative. Used pallet prices are substantially less affected by lumber market swings because the raw material is already in circulation.

Products

Plastic Pallet Growth

The plastic pallet market is growing at approximately 6% annually, driven by demand from food and pharmaceutical industries that require hygienic, easily sanitized shipping platforms. While plastic pallets have a higher upfront cost, their longer lifespan (typically 10+ years versus 3-5 years for wood) and recyclability make them economically competitive over time for high-cycle applications.

Technology

Automation Compatibility

As more warehouses adopt automated storage and retrieval systems, robotic palletizers, and autonomous mobile robots, the demand for dimensionally consistent pallets is surging. Automated systems require pallets with tighter tolerances than manual handling. This is driving growth in premium-grade used pallets and new pallet designs optimized for robotic handling.

Regulation

Sustainability Mandates

Major retailers and distributors are increasingly mandating sustainability requirements for their supply chain partners. Companies like Walmart, Amazon, and Target have published supplier sustainability scorecards that award points for using recycled packaging materials, including pallets. This regulatory and commercial pressure is accelerating the shift toward circular pallet economics.

Business Model

Pallet Pooling Growth

The pallet pooling and rental market continues to grow as businesses look for alternatives to owning pallet inventory outright. Pooling models like CHEP and PECO charge per-trip fees that can simplify accounting but often cost more over time than owning recycled pallets. Understanding the breakeven point between pooling and purchasing is critical for optimizing pallet spend.

Trade

Export Market Dynamics

International trade volumes and shipping container shortages continue to impact pallet demand at major port cities. Export pallets must meet ISPM-15 requirements, and the cost of heat treatment adds to per-unit pricing. Many exporters are switching to heat-treated recycled pallets as a cost-effective way to meet compliance without purchasing new pallets for one-way international shipments.

Best Practices

Pallet Care & Handling Tips

Proper pallet handling and storage can dramatically extend the useful life of your pallets, reduce damage rates, and lower your total pallet costs. Here are our expert recommendations for getting the most out of every pallet.

Proper Stacking Techniques

Stack pallets on flat, level surfaces and never exceed recommended stack heights (typically 15-20 empty pallets). Ensure each pallet in the stack is aligned properly — offset pallets create uneven weight distribution that can cause the stack to lean or collapse. For loaded pallets, always center the load and use stretch wrap or strapping to secure goods.

Weather Protection

Prolonged exposure to rain, snow, and direct sunlight degrades wood pallets faster than any other factor. Store unused pallets under cover whenever possible. If outdoor storage is unavoidable, elevate pallets off the ground on concrete blocks or rails to prevent moisture wicking from wet surfaces, and cover the top of stacks with tarps.

Forklift Best Practices

Forklift damage is the number one cause of pallet breakage. Train operators to fully insert forks before lifting, avoid dragging pallets across floors, and never use a single fork to move loaded pallets. Approach pallets squarely rather than at an angle, and lift slowly to prevent boards from cracking under sudden stress.

Load Distribution

Distribute weight evenly across the entire pallet surface. Concentrated point loads can crack deck boards and cause structural failure. Use load-bearing sheets or slip sheets between the pallet and heavy products to spread the weight. Never exceed the pallet's rated static or dynamic load capacity as specified by the manufacturer or grade.

Regular Inspection

Inspect pallets before each use for cracked boards, protruding nails, missing blocks, and excessive wear. A quick visual check takes seconds and prevents product damage, worker injuries, and equipment jams. Remove damaged pallets from circulation immediately — they are cheaper to repair than the consequences of using a broken pallet.

Return & Recycling Programs

Implement a pallet return program with your suppliers and customers. Many businesses accumulate pallets they do not need, while their counterparts are purchasing new ones. A coordinated return system keeps pallets in circulation longer and reduces costs for everyone in the supply chain. EcoPallets Pro can help you set up a managed return program.

Free Downloads

Free Guides & Reference Materials

Our team has created comprehensive guides and reference materials to help you navigate the pallet industry with confidence. All resources are free to download.

PDF Guide20 pages

Pallet Buyer's Guide 2025

A comprehensive 20-page guide covering everything you need to know about purchasing pallets — from size selection and grading to pricing strategies and supplier evaluation. Includes a purchasing checklist and RFQ template you can use immediately.

Request download
Reference Chart2 pages

Pallet Size Comparison Chart

A printable reference chart showing all standard pallet sizes used in the United States and internationally, with dimensions, weight capacities, common applications, and compatibility notes for major racking systems.

Request download
SpreadsheetInteractive

Sustainability ROI Calculator

A spreadsheet tool that calculates the financial and environmental return on investment from switching to recycled pallets. Input your current pallet volumes and costs, and the calculator shows projected savings, CO2 reduction, and ESG reporting metrics.

Request download
Checklist4 pages

ISPM-15 Compliance Checklist

A detailed checklist for ensuring your pallets meet international shipping requirements. Covers heat treatment specifications, documentation requirements, stamp placement, and common compliance mistakes that can cause shipment delays at customs.

Request download
Operations Guide15 pages

Warehouse Pallet Management Best Practices

An operational guide for warehouse managers covering pallet inspection protocols, stacking procedures, storage optimization, damage tracking, and return program setup. Includes printable inspection forms and training materials for floor staff.

Request download
Strategy Guide12 pages

Pallet Cost Optimization Playbook

A strategic guide for procurement teams looking to reduce total pallet spend without sacrificing quality. Covers volume pricing strategies, grade optimization, supplier diversification, repair vs. replace analysis, and seasonal purchasing tactics.

Request download

Have Questions About Pallets?

Our team of pallet experts is here to help. Whether you need advice on sizing, grades, or sustainability — we have the answers.

2M+ Pallets Recycled Annually150,000+ Trees Saved95% Landfill Diversion Rate8,500+ Tons CO₂ ReducedZero-Waste Vision by 2030100% Reusable MaterialsCertified Eco-Friendly ProcessSaving Resources, One Pallet at a Time2M+ Pallets Recycled Annually150,000+ Trees Saved95% Landfill Diversion Rate8,500+ Tons CO₂ ReducedZero-Waste Vision by 2030100% Reusable MaterialsCertified Eco-Friendly ProcessSaving Resources, One Pallet at a Time