The wood pallet industry is a critical but for the most part, silent cog in the American supply chain, helping more than 80% of all products sold get to market. A recent study, Investigation of the Status of the Wooden Pallet Market during the COVID-19 Pandemic by Hobbs, Horvath, and Gething (2025), sheds light on the dramatic shifts and steady trends within the sector during the pandemic years from 2019 through 2021.
Drawing from a national survey of pallet companies, the study captures a detailed snapshot of production, lumber usage, repair practices, and business resilience during one of the most turbulent periods in recent history. Here are the key takeaways from the research.
1. New Pallet Production Soared,
Defying Pandemic Expectations
One of the standout findings is the extraordinary surge in new pallet production. The U.S. pallet industry produced an estimated 919 million new wood pallets in 2021, a 75% increase over 2016. This growth occurred despite widespread economic disruptions during the COVID-19 pandemic
A large part of this uptick can be attributed to the boom in e-commerce, essential goods shipping, and just-in-case inventory buildup, which kept pallet demand high while other sectors slowed. The study shows that 51% of companies reported higher 2020 sales than in 2019, and only 4% had to conduct permanent layoffs during the pandemic. In a period of global volatility, the wooden pallet industry proved surprisingly robust.
2. Softwood Now Dominates
Pallet Lumber Use
Although softwood has long been favored in the Western U.S., the industry as a whole has undergone a notable shift in material sourcing. By 2021, softwood made up 81% of lumber used in pallet production, a significant rise from 55% in 2016. This change reflects both the declining availability of certain hardwoods, such as oak, and the growing preference for softwoods due to the increased abundance of SYP and ease of heat treatment.
Within softwood species, Southern Pine (42%) and Douglas-Fir (40%) were the most used, while Spruce-Pine-Fir (SPF) dropped dramatically to just 14% of softwood usage—down from over half in 2016. Notably, this trend may reflect supply constraints, particularly the impact of wildfires and bark beetle infestations on SPF forests in the U.S. and Canada.
3. Repair Activity Recovered, but Hasn’t Reached Previous Highs
The industry also repaired and remanufactured 280 million pallets in 2021, a partial recovery from a significant drop since 2016, when 326 million pallets were repaired or remanufactured. The study attributes this to several converging factors:
Fewer pallets were returned to recyclers due to pallet users keeping them in service longer due to tight supply.
7 Takeaways from U.S. Wood Pallet Sector Statistics
Estimated Annual Production Number for New and Repaired / Remanufactured Pallets between 2016 and 2021 (Source: Hobbs, Horvath and Gething (2025). New pallet production soared between 2016 and 2021.
26 WESTERN PALLET