Recycled Pallet Market Update: Tight Core Supplies Drive Pricing Pressure
While much of the industry's attention remains focused on lumber costs and new pallet pricing, the recycled pallet market is facing its own supply challenges.
Economic uncertainty, fluctuating fuel costs, and changing inventory strategies are impacting the availability of pallet cores—the used pallets recyclers depend on to produce repaired and remanufactured pallets.
What's Happening? Companies across many industries are holding onto usable pallet cores longer rather than returning them to the recycling stream. Core availability has tightened significantly in many regions. Recyclers are paying higher prices to secure quality cores needed to support customer demand. Rising fuel costs continue to increase both transportation and operational expenses throughout the pallet industry.
Why It Matters A healthy supply of returned pallet cores is essential to the recycled pallet market. When fewer cores are available, recyclers must compete more aggressively for supply, driving up core values and increasing production costs. Across many markets, recycled pallets are arriving at repair facilities and being shipped back out almost immediately, leaving little inventory available. Some recyclers are limiting additional production commitments due to shortages of quality cores.
Market Outlook Competition for pallet cores continues to intensify as recyclers, manufacturers, and national pallet providers seek to secure available supply. As long as core availability remains constrained, upward pressure on both core pricing and recycled pallet pricing is expected to continue. Source: Recycle Record, May 2026 |