is still relatively small. According to Horvath, the material
only represents 0.8 percent of the market demand and is
being utilized by 7 percent of users. The Freedonia Group,
however, expects that demand for metal pallets will grow
at a faster rate than demand for any other type of pallet
into 2017.
Both steel and aluminum pallets are strong, durable, and
easy to clean. Steel pallets, however, tend to be quite heavy,
often weighing over 50 pounds, according to Gaier. As a
result, their use is largely restricted to specialized heavy-duty applications, says Horvath. For instance, the military
uses steel pallets for shipping machinery and munitions.
Aluminum is lighter than steel—a standard 40- by 48-inch
aluminum pallet weighs less than 40 pounds on average—
and offers a high strength-to-weight ratio, according to
Peter Johnson, president of Eco Pact, a maker of aluminum
pallets. “Aluminum is also clean and sterile, and doesn’t
rust,” he says. “In addition, bacteria won’t grow on it.”
These qualities make the pallets well suited for industries
such as pharmaceuticals, food, and industrial machinery,
Johnson says.
Aluminum pallets can either be welded together or riv-
eted, according to Johnson. Welded pallets are generally
stronger but cannot be easily repaired. Eco Pact, howev-
er, makes riveted pallets with an interlocking design that
improves the strength, according to the manufacturer.
While aluminum still commands only a small share of
the market, Johnson says it’s made headway over the last
two years because of the material’s cleanliness, safety (lack
of nails, splinters, and protruding boards), and long lifespan. He expects demand for aluminum pallets to grow by
10 to 15 percent over the next five years.
A BIGGER PIECE OF THE PIE?
It seems unlikely that plastic, paper, or metal could topple
wood from its perch at the top of the pallet market—a seat
it has held for more than 70 years. “Even when you com-
bine all of these other alternative pallet materials, you’re
still only talking about less than 5 percent of the pallet
market,” says Millwood’s Gaier. “Wood is still the most
sustainable, best dollar-value material for a pallet.”
Yet by any measure, the pallet market is huge and grow-
ing. The Freedonia Group expects North American sales
to hit 1. 3 billion units by 2017, with a total value of $16.9
billion. And a bigger market means more room for lots of
different types of pallets. As makers of alternative pallets
proliferate and innovate, it seems likely they’ll be able to
carve out a profitable niche for themselves. And companies
that have not looked at their pallet choices recently may
find it advantageous to re-examine their options.
