The invention relates to pelletizing thermoplastic road marking substance containing light-reflective agents, such as glass beads. A dry formulation of the ingredients is transported to a heating station, where the dry mix is heated to a molten state. The melted mix is extruded into form pockets of a moving conveyor. As the conveyor moves through a cooling station, the molten substance in the form pockets solidifies forming individual pellets. The pellets are then removed from the form pockets, packaged and shipped to customers.