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How plastic pallets are recycled, from yard to regrind to pallet

Last reviewed Nov 12, 20267 stages
The short answer

Plastic pallets are recycled in five steps: collect, sort by resin and colour, clean, grind into regrind, then melt and mould again. The pallet in your yard is feedstock for the next one.

Racklify describes the same chain: collected, sorted by bale grade, cleaned, shredded or granulated, then extruded or injection moulded.

Got a load like this?

Five questions and a photo. We say what we think happens next once the pallets have been seen.

The loadBrokenregrindSoundreuseMixedblendPoolowner
Four bins. A load goes to the one that fits first and moves if the pallets say otherwise.

Collect and count

A load is described and, where it makes sense, photographed. The count matters because it sizes the trailer. A stack of nestable pallets is dense. A stack of rackable ones is not.

Every pallet is checked for owner marks before it is counted as feedstock.

Sort by resin and colour

HDPE and PP go to separate piles. Within each, colour comes next, because the colour of the regrind sets what it can be moulded into. Black hides everything. A single other colour is a smaller, cleaner stream.

Remove what does not belong

Metal, labels, tags, stones and food residue come off. Burnt or melted sections are cut out. The Racklify description puts contaminant removal before cleaning and drying, and so do we.

Shred, then grind to regrind

Large pieces are shredded, then granulated through a perforated screen. The holes set the size of the flake. Regrind is what comes out, and the Cary Company defines it as scrap chopped and ground into pellets or flake for another run.

Melt and mould

Regrind is melted and formed again. Injection moulding is the usual way a pallet or a pallet part is made. Some recycled-content pallets blend regrind with virgin resin, so ask for documentation of the content.

Where the process can fail

Most failures happen before the machines. Mixed resins, heavy contamination and an unknown owner stop a load faster than a worn knife. Each stage above is a place to catch the problem while it is cheap.

What recyclers call good feedstock

A single resin, one colour or a known blend, little residue, no metal and no foreign plastic. A pallet that came from a clean warehouse in a single colour is easier to place than one from a mixed dock.

Process at a glance

StepInputOutput
CollectMixed pallets in a yardA counted, checked load
SortThe loadHDPE and PP piles, by colour
CleanSorted pilesFeedstock without contaminants
GrindFeedstockRegrind flake
MouldRegrind, sometimes with virgin resinA pallet or a part

What the sources say

  • resource-recycling.comGreystone Logistics processed about 60 million pounds of recycled plastic in the year ended May 31, 2024, using damaged plastic pallets from a buy-back program among its feedstock.
  • nelsoncompany.comAdvanced composite material pallets are 100 percent recycled polyolefins, cheaper with a shorter life, and suit export where the pallet is not returned.
  • nelsoncompany.comFor products touching the pallet directly, stricter federal requirements may call for non-blended virgin HDPE; recycled pallets often meet general FDA needs.
  • palletenterprise.comCalifornia AB 1760 (2022) lets recyclers take possession of stray proprietary pallets if the owner cannot be identified or fails to retrieve them in time, with a 35-day period before they can be declared abandoned.
  • rehrigpacific.comRehrig Pacific offers the standard-duty nestable with recycled content of up to 90 percent in black, and describes it as 100 percent recyclable.
  • en.wikipedia.orgAbout 500 million pallets are made each year as of 2020, with about 2 billion in use in the US.
  • rehrigpacific.comRehrig Pacific's heavy-duty nestable can be made with post-consumer or post-industrial recycled material, up to 30 percent in black and up to 10 percent in colour, and is RFID compatible.
  • nelsoncompany.comHDPE is the most common resin in plastic pallets; PP is more rigid and the page recommends it for unsupported racking.
  • en.wikipedia.orgPlastic pallets are made by injection molding, structural foam molding, thermoforming, compression molding, rotational molding and profile extrusion.
  • palletenterprise.comIn 2011 a Quebec court ruled that CHEP's identified blue pallets belong to CHEP and cannot be sold.
  • rehrigpacific.comRehrig Pacific's 40 x 48 rackable pallet is high-pressure injection molded co-polymer polypropylene, with 540 per 53 ft trailer.
  • palletenterprise.comCHEP USA sued two California recyclers over CHEP-marked pallets they would not return; a Los Angeles court granted CHEP's motion to retrieve pallets in one case (article dated February 1, 2024).
  • eponline.comIn December 2011 a Los Angeles County Sheriff task force recovered over $250,000 of illegally obtained plastic pallets, including iGPS pallets, from a plastic recycler.
  • en.wikipedia.orgPlastic pallets weigh about 3 to 15 lb when light and up to 300 lb when heavy; a typical GMA wood pallet weighs about 37 lb.

Terms on this page

Regrind
Plastic ground from used or scrap parts into flakes for moulding again.
Bale
A compressed block of scrap, tied for shipping. Buyers grade bales by resin, colour and cleanliness.
Shredder
A slow, heavy machine that tears whole pallets into large pieces before they reach the granulator.
Granulator
A machine with rotating knives that cuts plastic down to a set size, then pushes it through a screen.
Extrusion
Pushing melted plastic through a die to make a continuous shape, often pellets or sheet.
Injection moulding
Pallet made by forcing molten resin into a mould at high pressure.
Trailer fill
How much of a trailer a load takes: a quarter, half or full. It sizes the freight job.
Nestable
Empty pallets stack inside one another, cutting empty storage space by up to 75 percent.
Rackable
Rated to sit on rack beams, with a stated racking load.
Ownership check
Our first step with any pallet that carries a name, logo, tag or colour that suggests another owner.
HDPE
High-density polyethylene, resin code 2. The most common resin in plastic pallets; tough and moisture resistant.
PP
Polypropylene. More rigid than HDPE and better with heat and harsh chemicals; used where rack stiffness matters.
Resin code
The number inside the triangle on a plastic part. HDPE is 2, PP is 5.
Resin identification code
Number on a plastic part for the resin, which does not itself say whether it is recyclable.

Questions people ask

What is the screen in a granulator?

A perforated plate that sets the flake size. Material stays in the cutting chamber until it is small enough to fall through the holes.

Is regrind the same as pellets?

Regrind is flake straight from the grinder. Pellets are made by melting and cutting it again. Both are called recycled resin.

Can regrind go back into food-contact use?

Generally not. The Cary Company says its own regrind is not FDA compliant even though HDPE is an FDA-compliant plastic.

How long does the whole process take?

We state no timing. It depends on the processor, the volume and the route.

Does grinding destroy the plastic?

Grinding changes its shape, not its chemistry. Each melting does age the polymer a little, which is one reason blends are specified.

Sources, reviewed Nov 12, 2026: Racklify encyclopedia, recycled plastic pallets; The Cary Company, what is regrind; Wikipedia, resin identification code.

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