In the world of supply chain management, even the smallest choices can have a big impact—especially when it comes to the type of pallets you use. Selecting the right pallet isn’t just about picking wood or plastic; it’s a decision that affects your business’s operational efficiency, overhead costs, and sustainability efforts.
Have you found yourself stuck on determining which option will benefit your business the most? Below, we break down the pros and cons of plastic vs. wood pallets and explore the most noteworthy trends and stats to help you make an informed decision.
Why Pallet Choice Matters in Supply Chain Management
Landing on which type of pallets your organization should use isn’t always an easy decision, but it’s a worthwhile one to make. Your choice affects several important aspects of your organization. These include operational efficiency, overhead costs, and sustainability goals — all of which significantly impact your entire logistics process. You’ll want a pallet solution that’s cost-effective, durable, and meets your industry’s compliance requirements.
Both wood and plastic pallets are popular options that meet supply chain needs, but as with anything, there are pros and cons to consider for both to find the best solution for your business.
Pros and Cons of Plastic Pallets
A fun piece of manufacturing history? While a seemingly modern invention, plastic pallets have been around for over 50 years. They were originally invented in the 1960s! Today, the use of plastic pallets has increased due to their long life span and increased demand from industries with strict packing regulations.
Plastic Pallet Pros
- Durability: Plastic pallets can be less prone to breaking, resulting in the longer lifespan mentioned above.
- Hygiene: They are easier to clean and sanitize, making them ideal for industries with strict regulations, like the food and pharmaceutical industries.
- Consistency: They can easily be manufactured to meet specific and uniform size and weight requirements – or even distinct contours, dimensions, and shapes – all of which can be beneficial if your business operates with automated handling systems, unique storage requirements, and distinct cargo.
- Weight: Plastic pallets typically weigh less than wood pallets, reducing shipping costs and making them easier to handle during transport.
Plastic Pallet Cons
- Higher Initial Cost: Plastic pallets are generally more expensive than wood pallets because of the more complex manufacturing process, which involves more specialized machinery and materials.
- Limited Repair Options: They are harder — and often impossible — to repair, needing replacement if damaged, which could burden your supply chain with additional costs.
- Lower Load Capacity: Some plastic pallets may have a lower weight tolerance than wood pallets, limiting their use if your business is shipping heavier goods.
Pros and Cons of Wood Pallets
Despite plastic pallets growing in popularity, wood pallets remain the more popular choice: Their affordability and availability still can’t be beaten. Because they are also easier to repair, wood pallets are also ideal contenders for “repair and return” programs — which we’re proud to manage for our customers at Ongweoweh. These programs are a fantastic way to save money while reducing your business’s environmental impact. As with plastic pallets, wood pallets also have their pros and cons.
Wood Pallet Pros
- Lower Cost: As mentioned above, wood pallets are a more cost-effective option and are less expensive upfront when compared to their plastic counterparts.
- High Load Capacity: Wood pallets support heavier loads, making them better-suited to transport heavier and bulkier goods.
- Easy to Repair: Damaged wood pallets can easily be repaired, adding to their lifespan (and sustainability factor).
- Biodegradable: Speaking of sustainability, wood pallets are generally easier to dispose of or repurpose (e.g. mulch, wood pellets for heating, etc.) when they reach end-of-life, making them an equally (if not more) sustainable option than plastic pallets.
Wood Pallet Cons
- Susceptibility to Contamination: Wood pallets can harbor bacteria and pests, making them less suitable for industries with strict hygiene standards.
- Variable Quality: Quality can vary, and wood can splinter or break — so it’s crucial to work with a pallet supplier you can trust to provide you with consistent, high-quality solutions.
- Shorter Lifespan: Wood pallets may have a shorter lifespan, especially with heavy use (but their ability to be repaired can extend that lifespan.
- Environmental Impact: If not sourced sustainably, wooden pallets can add to deforestation and have a negative environmental impact. However, with sustainable sourcing and their ability to be recycled, wood pallets tend to be more environmentally friendly than plastic pallets.
Adoption Rates and Trends: Plastic vs. Wood Pallets
If you’re still on the fence about which pallet option is the right one for your business, it’s worth looking at the adoption rates and trends of each. Doing so will help you understand what the future of supply chain management may hold — and could even keep you ahead of your competition.
Current Pallet Use & Adoption Rates
Wooden pallets remain the more popular choice, making up nearly 95% of the global pallet market. But you should keep an eye on the adoption rate for plastic pallets — which is on the rise. In 2022, the global plastic pallets market was estimated at 7.3 billion dollars. According to a market analysis report conducted by Grand View Research, it’s projected to expand at a compounded annual growth rate (CAGR) of 5.6% by 2030. This expansion is thanks to an increasing demand for hygienic pallets from the food and beverage, pharmaceutical, and chemical industries. And of course, these industries are always in demand and continue to grow.
Trends in Pallet Adoption
Technology Integrations: Virtually no industry is immune to technological advancements, and the supply chain industry is no exception. Another factor that could lead to the increased growth and use of plastic pallets is the integration of RFID chips into plastic pallet design. These “smart pallets” allow for easier tracking and traceability — creating an understandable appeal.
Sustainability and Recycling: The market for sustainable pallet choices is growing as more businesses prioritize minimizing their negative impact on the environment. Recycled pallets — wood and plastic — are also the most popular choice on the market. They are better for the environment and a more cost-effective option, creating a win-win scenario for the planet and the businesses using them.
Continued Market Growth: Innovative pallet solutions like these are projected to continue to drive overall growth in the global pallet market, which also shows no signs of slowing down. After being valued at 59.9 billion dollars in 2018, the market is projected to reach around 127 billion by 2032. Wood pallets are still predicted to hold the largest market share.
The True Winner in the Wood vs. Plastic Pallet Debate
Both wood and plastic pallets offer distinct advantages and potential drawbacks, from wood’s affordability and repairability to plastic’s durability and hygiene benefits. As the market trends reveal, wood pallets remain the dominant choice. Still, the rising demand for plastic pallets—driven by technology integrations and industry-specific needs—signals a shift worth watching.
In this debate, there’s no one right answer — and therefore no true champion. The winning choice is ultimately the one that provides you and your business with the most value and meets your operational needs, budget, and environmental goals.
Ongweoweh can help with that decision. With 45 years of experience and our network of over 1,600 vetted pallet suppliers, we’ll work with you to find the right solution to meet your supply chain management needs. Contact us today to get started.
