New vs recycled pallets: cost, quality and when to use each

Most pallets in North America are reused. Pallet recyclers collect used pallets, sort and grade them, repair what can be repaired, and sell them back to shippers at a lower price than new. New pallets cost more but are built to a known spec. The decision is about how much variation your supply chain can tolerate.

#Side-by-side comparison

Prices are 2026 US estimates. New pallet prices track lumber markets; used pallet prices track the supply of cores (used pallets) and demand from shippers. See pallet cost.

#What "recycled" can mean

• Grade A (#1): used pallets with no repairs or only minor ones, sound boards and blocks or stringers. See Grade A pallet.
• Grade B (#2): repaired pallets, often with companion stringers or plugs, more wear. See Grade B pallet.
• Remanufactured: pallets rebuilt from reclaimed components, sometimes to a new size. See remanufactured pallet.
• Combo: a mix of new and used components. See combo pallet.

Grade names are market terms, not a single industry standard, and definitions differ between recyclers. Ask for photos or samples, and write your acceptance criteria into the purchase order. The Uniform Standard for Wood Pallets includes repair classes and tolerances that can be referenced. See pallet grades and pallet inspection.

#Performance and risk

A new pallet built to a design has known species, board sizes, fasteners and moisture, so its capacity can be analyzed. Recycled pallets mix species and repairs, so two pallets in the same stack can behave differently. For floor stacking of light loads that rarely matters. For racking, heavy loads and automated handling it can. Loose nails, cracked boards and plugged stringers are the common failure points.

Moisture is another difference: used pallets that sat outdoors may be wet and prone to mold. See pallet mold.

#Export

Used pallets can carry an ISPM 15 mark from their original treatment. That mark stays valid only if the pallet has not been repaired or remanufactured. Repaired pallets must be re-treated and re-marked, with old marks obliterated. See heat-treated pallets.

#Buying recycled pallets well

• Write the grade into the purchase order in plain terms: allowed repairs, maximum number of plugged or companion stringers, no protruding nails, no broken or missing deckboards, no oil stains or odor.
• Specify moisture and mold limits if goods are food or will ship in containers.
• Ask for ISPM 15 status if pallets will be exported, and reject repaired pallets with old marks still visible.
• Audit incoming loads with a simple sampling plan. See pallet inspection.

#When to choose each

Choose recycled when:

• you ship standard 48 × 40 in pallets one way;
• the customer accepts used pallets and you can define a grade;
• price matters more than appearance;
• local recyclers can supply your volume reliably.

Choose new when:

• you need a non-standard size or a designed load capacity;
• pallets go through automated conveyors, AS/RS or robotic palletizers;
• you ship food, pharma or export goods with documented requirements;
• a retailer or customer specifies new or a particular construction.

A middle path is a closed loop: buy new or high-grade pallets and recover them, or rent pooled pallets. See pooled vs white wood. If you buy new, you can spec the pallet in the designer so quotes compare like for like.