PalletTrader, the leading online pallet marketplace, recently shared the results from its first quarter 2024 U.S. pallet industry survey. PalletTrader stated, “Despite recent challenges, the survey indicates signs of stabilization and anticipates positive shifts that could influence market dynamics in the coming months.”
That’s welcome news for the pallet market, which has been struggling over the past year plus with stagnant demand after a massive run up during the pandemic. PalletTrader explained, “There’s a consensus among respondents that the market has reached its lowest point with a gradual recovery now underway…However, growth is expected to be slow.”
Based on Pallet Profile market research, we believe the recycled market has certainly reached the bottom. The new pallet market is likely getting there, but has not dropped as quickly or as far as the recycled sector. There still is pressure from some new pallet customers looking for lower prices. But the ability to secure a significant price reduction is becoming harder.
PalletTrader’s survey also predicted a sunny forecast for the future. PalletTrader explained, “Looking ahead to the next six months, the survey projects an optimistic increase in pallet demand. This anticipated growth signals a coming period of opportunity and expansion for players within the market.”
A major issue is the surplus of pallets in the recycled market. But PalletTrader predicted, “A tightening of pallet supply is anticipated over the next six to twelve months, highlighting the need for strategic planning and inventory management.”
Kevin Kull, senior vice president of sales and operations at PalletTrader, said, “The results from our Q1 Pallet Market Survey underscores the resilience and adaptive capacity of the pallet market…It highlights the importance of staying nimble, informed and prepared for the shifts that lie ahead.”
To see the full PalletTrader survey result click here.
