Pallet Recycling 101: What Businesses Need to Know

Every business that ships or receives products relies on pallets. But what happens when those pallets reach the end of their first use? Too often, they’re tossed aside or left to pile up behind warehouses. Pallet recycling provides a cost-effective, sustainable solution that benefits both your bottom line and the environment. Here’s what businesses need to know about pallet recycling and how it can transform your operations.

Why Pallet Recycling Matters

Pallets are the backbone of modern supply chains. Whether you’re in manufacturing, distribution, or retail, chances are your products arrive on wood pallets. With millions of pallets in circulation, disposal quickly becomes a problem. Recycling offers three key benefits:

• Cost Savings – Recycled pallets often cost less than brand new ones without compromising functionality.
• Sustainability – Recycling keeps wood out of landfills, reduces waste, and lowers your company’s carbon footprint.
• Supply Chain Reliability – By recycling pallets, you help maintain a steady supply of usable pallets, even during high-demand seasons.

The Pallet Recycling Process

Recycling doesn’t just mean reusing old wood—it’s a structured process designed to extend the life of each pallet:

1. Collection & Haul Off – Businesses set aside broken or unused pallets. A recycling company collects them, often offering free or discounted pickup services.
2. Inspection & Sorting – Pallets are graded to determine whether they can be repaired, reused, or need to be dismantled.
3. Repair & Refurbishing – Damaged boards are replaced, nails are removed or reset, and pallets are restored to meet industry standards.
4. Material Recovery – Pallets beyond repair are broken down. Usable wood is reclaimed, and the rest may be turned into mulch, animal bedding, or biomass fuel.

Types of Recycled Pallets

Not all recycled pallets are the same. Businesses can choose from different options depending on their needs:

• Repaired Pallets – Previously used but restored to industry standards, ideal for most shipping and storage needs.
• Remanufactured Pallets – Built from a mix of new and recycled wood, offering a balance of cost and durability.
• Recycled Specialty Pallets – Custom-sized pallets made from reclaimed materials to fit unique shipping requirements.

How Pallet Recycling Benefits Your Business

Recycling pallets isn’t just about being environmentally friendly—it’s about creating efficiencies in your operation:

• Lower Packaging Costs – Recycled pallets typically cost 20–30% less than new ones.
• Improved Sustainability Profile – Many companies highlight pallet recycling in their ESG (Environmental, Social, and Governance) reporting.
• Space Management – Recycling prevents pallet pile-ups that clutter warehouses and create fire hazards.
• Tax Incentives & Compliance – In some states, businesses can earn tax credits or meet environmental compliance goals through pallet recycling.

Getting Started with Pallet Recycling

If you’re new to pallet recycling, here are some simple steps to get started:

• Find a Reliable Pallet Company – Partner with a local pallet supplier that offers recycling services.
• Set Up a Pickup Schedule – Arrange regular haul-offs to keep your lot clear of unused pallets.
• Train Your Team – Educate warehouse staff on how to set aside and stack pallets for recycling.
• Request a Recycling Report – Many providers offer reports showing how many pallets were recycled, repaired, or repurposed—helping you track sustainability efforts.

Pallet recycling is one of the simplest ways businesses can cut costs, reduce waste, and improve efficiency.

By reusing and repurposing pallets, you’re not just keeping your supply chain moving—you’re also making a positive impact on the environment.

If your business is ready to explore pallet recycling, M7 Pallets is here to help. We offer pallet recycling, custom pallet solutions, and reliable haul-off services throughout Atlanta and North Georgia.

Contact M7 Pallets today to schedule a pickup or request a free pallet recycling quote.