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How The Demand for Pallets Has Changed

Blue wooden pallets

The demand for pallets is based on several trends. Here’s how it has changed with time.

Environmental Trends

Manufacturers and businesses love circular business models allowing possibilities of reusable resources. Because of that, sustainability has been at the forefront of production trends. Different pallet recycling services allow for buying and selling of used pallets to encourage manufacturers to recycle instead of buying new pallets. This trend of low waste and high sustainability has positively impacted the pallet industry.

Material Trends

While the most common and universally popular variants are wooden pallets, an increased interest in plastic pallets has overruled their demand. Plastic pallets are rapidly gaining traction because they can be melted and molded into different products and aren’t prone to pests, rotting, etc.

However, they’re sensitive to temperature changes, which makes them ineffective for transporting goods. Plastic pallets also cost significantly more than wooden pallets. Therefore, businesses alternate between new, recycled, and rental pallets. This fluctuation in different material trends feeds into the overall pallet demand.

Wooden pallets

International Shipping Trends

The pallet demand also depends on international shipping. As the majority of goods are imported, these orders aren’t palletized. Instead, manufacturers load them in shipping containers without the pallets to save space. However, once the goods are unloaded, they need pallets to support their transportation and distribution. Non-palletized goods are often imported during high spending months, like the holidays.

Price Trends

An increase in the price of pallets has also affected the demand for them. The biggest reason for the price increase is the increased demand for lumber. Changing climate has made it difficult to log lumber, causing the prices to rise.

The cold and damp weather makes it hard to harvest lumber, making it difficult for loggers to meet deadlines. This creates competition and the prices of pallets rise.

The rise in pallet prices naturally decreases their demand. Due to this, many businesses are moving towards reusable pallets, stabilizing the demand and supply relationship.

Whether you’re on the lookout for wooden pallets or transportation products, you can find it all at Cantarero Pallets. We’re a reliable company that deals in supply chain management products.Contact us today to know more.

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