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Exporters adopting heat-treated wooden pallets & crates that comply with ISPM-15 phytosanitary standards: Expert
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Nandita Vijayasimha, Bengaluru
June 04 , 2025
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Indian pharmaceutical exporters are increasingly adopting heat-treated wooden pallets and crates that comply with ISPM-15 phytosanitary standards, facilitating seamless international trade. In fact, ISPM-15 has been implemented by 89 countries, ensuring that wood packaging materials are treated to prevent pest transmission, said Jay Deepak Shah, CEO & MD, Jay Wood Industry.
Wooden pallets, being recyclable and biodegradable, not only meet international standards but also demonstrate a brand's commitment to environmental responsibility. This strategic shift enhances their reputation as environmentally responsible partners, reduces carbon footprints, and ensures smoother logistics in markets with stringent sustainability regulations.
In India, the pallet market is witnessing significant growth, with the market size reaching 220.3 million units in 2024 and projected to reach 372.9 million units by 2033, exhibiting a CAGR of 5.72% during 2025-2033.
Sustainable packaging is emerging as a pivotal differentiator in the export-driven pharmaceutical sector. For example, in India, the wooden pallet market is valued at US$ 2.77 billion in 2025 and is projected to grow at a 5.4% CAGR, reaching US$ 4.69 billion by 2035. This robust growth reflects the rising demand for eco-friendly packaging solutions that comply with international standards, he noted.
The industry is increasingly turning to wooden pallets sourced from responsibly managed forests and certified by schemes such as the Programme for the Endorsement of Forest Certification (PEFC). Such certification not only guarantees sustainable sourcing and traceability but also aligns with the elevated ESG benchmarks that global buyers seek. In addition to being recyclable and biodegradable, these materials embody a brand’s commitment to environmental stewardship, Shah told Pharmabiz in an email.
Consequently, in an industry characterised by rigorous regulatory scrutiny, using certified wooden pallets signals transparency and responsibility. It increases market access and builds trust among international partners, providing a competitive edge during government and private tenders in regions that prioritise sustainability, he said.
The pharmaceutical logistics sector is undergoing a transformation through digitalisation and sustainable practices. Implementing digital tracking and automation enhances supply chain transparency and efficiency, contributing to reduced waste and energy consumption. The World Economic Forum emphasises that digital technologies, including IoT and AI, could help reduce global carbon emissions by up to 15% by 2030[2], highlighting their potential in optimising logistics operations. Additionally, an IBM study indicates that organisations integrating advanced analytics and IoT into their supply chains experienced a 20% increase in operational efficiency and a 15% reduction in carbon emissions. Wooden pallets, being durable and biodegradable compared to plastic alternatives, further reduce the environmental impact of logistics operations. By combining digital technologies with eco-friendly materials, pharmaceutical companies can optimise their logistics for both performance and sustainability, mitigate climate change and promote responsible resource use.
Circular economy practices are emerging as a vital strategy in pharmaceutical logistics. Models like pallet pooling, returnable wooden boxes, and packaging take-back programs are reducing packaging waste. For Indian pharma, which exports over $25 billion worth of medicines annually scalable circular models present both an economic and ecological advantage. Circular packaging is designed for multiple life cycles, easy repair, and minimal environmental impact making it ideal in a resource-constrained world. It also offers resilience against raw material shortages and regulatory shifts. With global regulators tightening sustainability norms, especially in Europe and North America, early adoption of circular solutions equips Indian pharma companies to stay ahead. This approach not only conserves resources but builds a logistics system that’s ready for the demands of the next decade, said Shah.
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