Why Companies Are Switching to Recycled Plastic Pallets (Data-Backed Insights)

Walk into any warehouse today, and you’ll see something completely different from even a few years ago. Timber pallets, while still widely used, are no longer the preferred option. This shift is part of a broader push for a more sustainable supply chain, but it isn’t just about going green. 

In this article, we’ll be exploring key data trends and cost insights driving companies to make the switch from timber to recycled plastic pallets, and why now is the perfect time to re-evaluate your pallet strategy. 

The Growing Adoption of Recycled Plastic Pallets

There are more than six billion pallets in circulation globally, and timber still makes up the overwhelming majority. But that dominance is starting to crack. (Source: Freedonia Group) 

Industry reports show the plastic pallet market growing at nearly 6% a year, with the recycled plastic segment expanding faster than that. Businesses want pallets that last longer, fit neatly into automated systems, and don’t create compliance headaches. (Sources: Freedonia Group, Future Market Insights, Market Report Analytics). 

Asia-Pacific is particularly active. Rules around ISPM-15 (the international standard requiring timber pallets to be treated against pests) are one factor. Another is automation; warehouses are scaling up fast, and plastic pallets are easier to standardise.

Growth rates there are sitting at 7–8% annually. (Sources: Cognitive Market Research, Future Market Insights) Warehouse and production line efficiency is severely impacted by pallet failures, and timber pallets are significantly more prone to structural failure.

In Indonesia, the change is tied to manufacturing and logistics growth. The local pallet market is tipped to increase from USD 4.8 billion in 2025 to nearly USD 8 billion by 2031.

A lot of that shift is straight from cheap timber to plastic because businesses want reliability, durability, and reusability built into their supply chain. (Source: Mobility Foresights). And there is a strong preference to use recycled plastics wherever possible (Source: NACOE)

Cost-Benefit Analysis of Plastic vs. Timber Pallets

Although plastic pallets may have a higher upfront cost, their long-term advantages far outweigh the initial investment.

Factor	Timber Pallets	Recycled Plastic Plastics
Upfront Cost	$10-$30 per unit	$10-$55 per unit, depending on sizing and load rating.
Average Lifespan	10–50 trips	100–250 trips
Maintenance	Frequent repairs needed (splintering, loose nails, broken boards)	Minimal maintenance; immune to moisture, pests & chemicals
Weight	10–40 kg (heavier, higher transport costs)	7–35 kg (lighter, reduced transport costs)
Sizing Consistency	Variable, prone to warping/damage, moisture	Uniform sizing, ideal for automation & conveyors
Compliance	ISPM-15 regulations apply	Exempt from ISPM-15; easier global trade compliance
Cost-Per-Trip	Higher over time due to frequent replacement/repair cycles	Lower over time; durability spreads the upfront cost over many trips
Sustainability	Limited recyclability contributes to deforestation	100% recyclable; circular model

(Sources: Born Again Pallets, AAA Pallet & Lumber Co, Top Pallets, Exporta Global, Eco Pallets, iGPS) 

Durability and Performance Metrics

Durability is where plastic pallets truly stand out.

• Recycled plastic pallets support around 1000–1500 kg of load and up to 2000–3000 kg static load. (Sources: Press Wood Pallet, TFG Global, CM Pallet Services).

• Plastic pallets resist moisture, pests, and chemicals, whereas timber can absorb water, warp, rot, or suffer insect damage. Timber pallets often require heat treatment and fumigation for exports, adding compliance overhead. (Sources: Export Pallets, West Coast Pallets). 

• On average, plastic pallets withstand 250+ trips before needing replacement, compared to just 15–20 trips for timber pallets. (Sources: TFG Global, CM Pallet Services). 

• Plastic pallets are dimensionally consistent, making them ideal for automated warehouses where millimetres matter. Standard-size timber pallets, by contrast, vary in size or warp over time. (Source: Export Pallets). 

The takeaway? With superior lifetime ‘trip’ cycles and automation compatibility, plastic pallets have become the performance standard for modern logistics.

Sustainability and Compliance Advantages

Beyond the balance sheet, companies are under pressure to demonstrate their ESG commitments. Pallets, surprisingly, have become a talking point in this shift to eco-friendly logistics solutions. 

• Every plastic pallet used reduces the demand for fresh timber, reducing deforestation and ensuring timber is used where its attributes are more valuable, like in housing.

• At the end of the service life, plastic pallets can be reprocessed into new pallets and not just burnt.

  
  

The result? A switch from timber to plastic pallets makes environmental, economic, and regulatory sense.

For many logistics teams, it’s one of the easiest wins available on the sustainability scorecard. 

If the plastic pallet is produced from recycled plastics, the win is more significant.

If the plastic pallet is manufactured without the feedstock requiring additional extrusions, the win meets all sustainability and environmental objectives. 

Why Re>Pal Leads the Future of Sustainable Logistics

What was once a niche idea has become a proven, sustainable pallet solution trusted across multiple industries.

Here’s what sets us apart:

• We transform even the hardest-to-recycle plastics into durable, long-lasting pallets, which means all waste plastics get a second life.

• Our single extrusion process - requiring no additional extrusions of feedstock - has at least 50% lower carbon footprint than other plastic pallets made from recycled plastics

• Re>Pal pallets can be fully recycled into new (‘zero-waste’) pallets, keeping end-of-life pallets out of landfills and from incineration.

• Re>Pal pallets meet or exceed industry benchmarks for load-bearing strength, impact resistance, and longevity.

  
  

Ready to make the switch? Contact Re>Pal today and see how recycled plastic pallets can cut costs and strengthen your supply chain.