Industry market research firm Freedonia Group Inc projects a 6.1% annual increase in US pallet demand to 1.3 billion units valued at USD15 billion in 2015.

The increased pallet demand could carry over to higher industry need for additional materials handling equipment such as forklifts.

An analyst's report says this projected pace represents a turnaround from 2005-2010, when demand fell to less than 1 billion pallets in a reflection of the decline in manufacturing output between 2007 and 2009. The analyst expects an advance to manufacturing from a low 2010 base.

Manufacturing requirements should account for about 75% of the market in 2015. Warehouse service providers buy new pallets and refurbish used pallets in adding to their stocks.

Pallets of wood should account in 2015 for about 93.5% of the US market. Other materials include corrugated paper (3.4%), plastics (2.7%) and metal (0.06%). While on smaller bases for 2010-2015, metal pallet demand should increase by 13.3% and that for plastic pallets by 10%.

Cleveland-based Freedonia Group published the 269-page "Pallets" report in May.