Last updated on November 27th, 2025 at 01:41 pm

sustainable living

Sustainable Palm Oil: What It Is, Why It Matters, and How to Choose Better

Is palm oil good or bad for you? Is it sustainable or ethical?

Palm oil is the most widely used plant oil in the world, accounting for over one-third of global plant oil production. Beyond cooking, palm oil finds its way into countless everyday products–often without you realizing it.

Because of its extensive use, it is essential to understand the significant ethical and environmental concerns tied to palm oil production.

In this article, you will learn everything from what palm oil is and where it comes from to what products it can be found in, environmental and human rights concerns, and how to choose sustainable palm oil.

Palm oil basics

What is palm oil? Where does palm oil come from?

palm oil comes from the fruit of the palm tree

Palm oil is a type of vegetable oil, derived from the fleshy fruit of the oil palm tree (Elaeis guineensis).

Native to West Africa, these trees grow in tropical climates. Today, Indonesia supplies the majority of the world’s palm oil, followed by Malaysia. Together, they are responsible for over 85% of global palm oil production.

Oil is extracted from the fruit via a multi-step process that typically includes fruit sterilization, steam digestion, mechanical pressing of the pulp, and oil clarification to separate impurities. The result is crude palm oil, which can be further refined depending on its end use.

Is palm oil a seed oil?

No — while both are plant-based, palm oil is not a seed oil. It’s extracted from fruit pulp, not from a seed like sunflower or canola. It’s technically a fruit oil, and its composition, uses, and health impacts differ from those of typical seed oils.

Types of palm oil

Red palm oil

Red palm oil is unrefined palm oil that has been minimally processed. As the name denotes, this oil has a reddish color, due to its high content of beta-carotene. It has a distinct odor and flavor and is typically used in traditional West African cooking.

Refined palm oil

In general, refined palm oil is chemically processed to purify, bleach, and deodorize it for widespread commercial use in baking, processed foods, cosmetics, and cleaning products. This refining process removes the oil’s natural color, odor, and flavor—along with most of its original nutrients.

Because of its neutral taste and flavor, texture, long shelf life, and low cost compared to other oils, refined palm oil is a favorite among manufacturers. However, as with other plant oils, its intense processing often involves high-heat treatment and chemical solvents, which can create unwanted byproducts and remove healthy oil components.

Palm kernel oil

While palm oil is obtained from the fruit’s flesh, palm kernel oil is extracted from the central kernel, which is similar to that found in stone fruits like apricots and peaches. This oil shares many similarities with coconut oil, another kernel oil. (Note that these differ from seed oils.)

Palm kernel oil is refined similarly to palm oil, but differs in its high saturated fat content, making it solid at room temperature.

What is palm oil used for?

Food

The majority of palm oil—two-thirds—is used in food manufacturing. You likely don’t realize just how much palm oil is a staple in your daily diet. Globally, the average person consumes an estimated eight kilograms of palm oil each year!

How is this possible?

Unless you’re preparing all of your meals and snacks from whole, unprocessed foods, there’s a good chance that palm oil makes its way into your food more than you realize. Its versatility, thanks to its neutral color and flavor, along with its shelf-stability and low cost, leads to its extensive use in processed foods of all kinds.

Palm oil has a high smoke point, making it ideal for high-temperature cooking methods, like deep frying. It’s commonly used in processed and packaged foods for this reason, especially where crisp texture is important. Products that may contain palm oil in this capacity include potato chips, crackers, breakfast cereal, microwave popcorn, and instant noodles.

Another desirable quality of palm oil is its ability to remain semi-solid at room temperature. This improves the mouthfeel and shelf stability of baked goods, such as bread, cookies, muffins, donuts, and pizza dough. Its texture-enhancing quality give margarine, shortening, and spreads like Nutella their smooth, spreadable consistency.

It doesn’t stop there. Palm oil is commonly added to ice cream, chocolate, and coffee creamers, where it enhances or mimics the rich creaminess of dairy. It’s even found in infant formula, used to replicate certain fatty acids found in breast milk.

And finally, that creamy spoonful of peanut butter? Palm oil may be what keeps it from separating in the jar.

processed snacks that likely contain palm oil

Is palm oil bad for you?

Of the palm oils, unrefined red palm oil is the healthiest option, as it is rich in antioxidants like vitamin E and carotenoids such as beta-carotene, and contains no trans fats. However, palm oil is low in omega-3s, and like its tropical oil counterpart, coconut oil, it is high in saturated fat.

Saturated fats increase cholesterol levels and should only be consumed in small amounts. The American Heart Association recommends choosing oils that contain less than 4 grams of saturated fat per tablespoon; palm oil contains 7 grams per tablespoon. According to Harvard nutrition experts, this makes palm oil a healthier alternative to butter and high trans fat shortenings, which contain more saturated fat. But overall, the primary oils you should be cooking with are liquid oils, such as olive oil, where the health benefits have been well-demonstrated.

Palm kernel oil is even higher in saturated fat content–80% versus the 50% of red palm.

Since red palm oil is not commonly used in Western cooking, all of the palm oil we consume has been refined. This oil has been heavily processed—stripped of its beneficial antioxidants, resulting in a calorie-dense oil with little nutritional value. While palm oil is not inherently inflammatory like many seed oils, it’s frequently found in ultra-processed foods, which are associated with chronic inflammation.

Wondering which oils are the healthiest and most eco-friendly? Discover the environmental impacts of each and find product recommendations with my full guide on sustainable cooking oils.

Beauty and personal care products

Palm oil’s versatility extends beyond food—it’s also a common ingredient in beauty and personal care products. In fact, it is estimated that at least 70% of beauty products contain palm oil in some form. Much like with packaged foods, you’ve probably been using palm oil every day without even realizing it.

A staple in many product formulations, palm oil can serve many purposes.

  • Surfactant (breaks down oil & grease)
  • Foaming agent
  • Emulsifier (prevents ingredients from separating)
  • Emollient (adding or sealing in moisture to skin)
  • Texture enhancing (improving spreadability, silkiness, or adhesion)

The creaminess of soaps and moisturizers, the foaming action of toothpaste, soap, and shampoo, and the smooth texture of deodorant and cosmetics usually owe these qualities to the inclusion of palm oil.

Want help finding clean beauty and personal care products? From skincare to hair products and nail polish, it’s all here.

Cleaning products

In cleaning products, palm oil performs many of the same roles as it does in beauty and personal care items. As a surfactant, palm-derived ingredients allow household cleaners to effectively lift dirt and grime from surfaces. In dish soaps and laundry detergents, they also serve as foaming agents, creating satisfying bubbles that aren’t necessarily required for cleaning performance.

Cleaning products can hide all kinds of chemicals that are harmful to both you and the planet. Learn how to identify non-toxic, eco-friendly cleaners here.

Other palm oil uses

Food and personal care products constitute the majority of palm oil’s use, but numerous other applications remain. Examples of additional items that may contain palm-derived ingredients include:

  • Biofuel
  • Paint
  • Plywood
  • Pesticides
  • Medication
  • Animal feed

Identifying palm oil-derived ingredients

Despite palm oil being everywhere, it is difficult to spot. Palm oil is rarely labeled clearly, instead disguised by one of over 200 names. It’s hardly surprising that most of us are unaware of its presence in items we frequently use or consume.

When in doubt, ask manufacturers whether palm oil is used, or look for certified palm oil–free labels to make your choice easier.

list of names for palm oil that can be found on ingredient labels

Know that some ingredient variations on this list, such as glycerin and sodium lauryl sulfate (SLS), may be sourced from other plant oils (like coconut), animal fats (like tallow), or fossil fuel-based. However, unless specified, these are likely palm-derived; you can always verify the source with manufacturers.

Environmental impact of palm oil

The palm oil industry struggles to keep up with ever-increasing demand. Between 2000 and 2023, palm oil cultivation in Indonesia expanded by nearly 650%. This boom has led to significant environmental consequences, earning palm oil its well-deserved negative reputation.

The farming practices associated with palm oil production are often devastating to the environment, with deforestation being the most serious environmental issue. Oilseed production (primarily palm oil and soybean oil) accounts for 18% of tropical deforestation, which is second only to the raising of cattle.

Large areas of native forests are cleared to make way for palm plantations. The monoculture of a single crop destroys biodiversity, altering the natural habitat for already endangered species such as the Orangutan, pygmy elephant, and Sumatran rhino. It has been estimated that oil palm expansion could affect 54% of all threatened mammals and 64% of all threatened birds globally.

Palm oil deforestation also contributes to erosion and land degradation. It leads to land conflicts and the displacement of local communities. Fire risk is drastically increased by the elimination of the humid protective canopy, exposing the forest floor to sunlight and air and creating the dry conditions conducive to fires.

The draining and drying of Indonesian peat forests is a significant contributor to fires. Peat contains 90% water and 10% organic matter decomposing underwater. Dried peatlands transform into large tinderboxes, and fires are extremely difficult to extinguish as they can smolder underground for long periods of time.

The most dire consequence of the destruction of these peatlands is the loss of their role as natural carbon sinks, which store more carbon per unit area than any other ecosystem on the planet. When peatlands are destroyed, stored carbon is released into the atmosphere. More carbon is released from fire intentionally (and illegally) used to clear land for palm plantations.

Another significant source of GHG emissions from palm oil production is palm oil mill effluent (POME), the wastewater produced during the oil pressing stages. For every metric ton of palm oil produced, 2.5 metric tons of POME are generated, which releases huge amounts of methane, a potent greenhouse gas. There is potential to capture and use this gas as a source of energy; however, most palm oil processing mills have yet to adopt this technology.

palm oil plantation

Palm oil rights: ethical concerns

Labor abuses

The palm oil industry has a long history of labor abuse and exploitation. Numerous investigations have linked palm oil to child labor, human trafficking, wage theft, dangerous working conditions, and even downright modern slavery.

In Malaysia, the most recent government survey (2018) estimated that 33,600 children aged 5-17 were working in the oil palm industry. In Indonesia, the U.S. Department of Labor estimated in 2023 that 3.7% of children aged 10-14 (approximately 816,000 children) were working–nearly 62% of them in agriculture. While exact figures are hard to pinpoint, and likely are higher than these estimates, both countries continue to face scrutiny for widespread child labor in palm oil supply chains.

A 2018 literature review found that oil palm plantation workers, due to long hours and physically demanding labor, are at high risk of musculoskeletal conditions, injuries, and psychosocial disorders. Infectious diseases like malaria and leptospirosis are prevalent, and unprotected exposure to harmful pesticides like paraquat—banned in more than 70 countries–is common.

Workers commonly dwell in dilapidated company-subsidized housing, which often lacks running water, sanitation, or protection from local rats or venomous snakes. Medical care is not provided, nor is maternity leave or childcare.

In 2016, Amnesty International uncovered widespread labor abuse on plantations supplying major global brands, including Unilever, Colgate-Palmolive, and Nestle. In 2020, the Associated Press released a series of in-depth articles investigating ongoing trafficking, forced labor, child labor, beatings, sexual assault, poor living and working conditions, and modern-day slavery.

Despite increasing awareness and pressure from watchdog organizations, labor abuses continue to be reported across the palm oil sector. Lack of transparency in sourcing and supply chains from manufacturers is commonplace, making it difficult for us as consumers to discern which products are ethically produced.

Land grabbing

Expansion of oil palm plantations in Indonesia has taken land away from Indigenous communities through both formal concessions and informal land grabbing. This often restricts access to forests, rivers, and other vital resources, including food, clean water, and materials used for housing and cultural practices. As a result, many communities experience reduced livelihoods, loss of traditional ways of living, and, in some cases, forced relocation or displacement.

worker holding palm oil fruit

“When Americans and Europeans see palm oil is listed as an ingredient in their snacks, they should know it’s the same as consuming our sweat and blood.”

-Zin Ko Ko Htwe, a Burmese man who was forced to labor for ten years

Should you boycott palm oil?

Palm oil production results in numerous serious environmental and human rights issues. At first glance, it seems the obvious answer is to boycott products that contain palm oil, but it isn’t that simple.

The combination of palm oil’s prevalence in a wide range of products and its laundry list of confusing ingredient names makes boycotting much less feasible. And despite the many ills associated with palm oil production, there are significant positives that cannot be overlooked.

The most compelling advantage of palm oil cultivation is its exceptional efficiency in land utilization. Palm oil yields far more product (2.9 tonnes) per hectare of land than any other oil crop. This allows farmers to produce larger quantities of oil from a relatively small land area. Comparatively, this is about four times higher than canola or sunflower oil (0.7 tonnes), and 10-15 times higher than coconut or peanut oil.

Our World in Data bar graph showing oil yield by crop type

The use of alternative oils could potentially have a higher negative impact, since any other vegetable oil crops yield significantly less oil per hectare, so increased use would require more land to meet demand.

Additionally, palm oil trees generally require fewer pesticides, fertilizer, and water than other vegetable oil crops.

Palm oil production costs are lower than other oils, and a blanket boycott could drive prices even lower, increasing demand and reducing the incentive to produce environmentally sustainable palm oil.

the oil offers unparalleled versatility for use in both the food and non-food sectors. A 2020 article published in Nature Sustainability determined “there are no viable alternatives to oil palm in terms of its yield and delivery of a range of specific oils for human use.”

According to the World Wildlife Fund (WWF), boycotting palm oil could create worse consequences for producers who are working hard to operate responsibly and ethically, hurting small farmers rather than large corporations. In Indonesia alone, 4.5 million people rely on the palm oil industry as their primary source of income.

In addition to the WWF, numerous other large conservation organizations do not advocate for boycotting palm oil. These include the International Union for Conservation of Nature (IUCN), World Land Trust, Conservation Medicine, National Wildlife Federation, and the Audubon Nature Institute, among others.

Rather than blacklisting all palm oil, these organizations believe the best solution is to focus efforts on changing the way palm oil is produced, along with supporting suppliers that operate sustainably.

  • Palm oil producers must only use already cleared or degraded land to expand plantations. They need to be transparent regarding land and labor practices.
  • Local governments must stop tolerating illegal and irresponsible palm oil production.
  • Accrediting organizations, such as the Roundtable on Sustainable Palm Oil (RSPO), and their members are expected to adhere to strict standards and take action when conditions are not being met.
  • Companies must source from responsible growers, and offer transparency regarding sustainable palm oil, including traceable supply chains.
  • Consumers should spread awareness, support companies that display a commitment to sustainable palm oil, and support conservation organizations that work to end deforestation associated with palm oil.

Sustainable palm oil

Since palm oil-free isn’t always better, how can we find products that contain sustainably-sourced palm oil?

We should support manufacturers that source palm oil from growers that incorporate NDPE commitments—that is, ‘No Deforestation, Peat, or Exploitation’. Palm oil should be traceable, but—surprise—this is not easy to find among prominent companies. If a brand does not disclose information regarding sourcing or NDPE policies, that says a lot; take these opportunities to call these brands out.

Tools such as the WWF Palm Oil Buyers Scorecard may help evaluate a company’s sustainable sourcing practices. The World Association of Zoos and Aquariums (WAZA) created PalmOil Scan, an app that allows you to scan product barcodes to assess whether brands are committed to sustainable palm oil.

Download on the App Store
Get it on Google Play

Third-party certifications are a useful tool in identifying sustainable palm oil. Companies must meet a strict set of standards to qualify for certification, which helps the consumer see through potential greenwashing and baseless sustainability claims. The certifying bodies are far from perfect, but they are a starting point.

RSPO palm oil

rspo logo

The Roundtable on Sustainable Palm Oil (RSPO) is the most prominent certifying body, covering around 19% of the global supply. Formed in 2004, this global partnership works with stakeholders from across the palm oil supply chain to develop and implement standards for sustainable palm oil and fair labor.

Unfortunately, the RSPO has received a lot of criticism in recent years from multiple organizations such as Greenpeace and the Environmental Investigation Agency. being accused of failing to prevent deforestation and land grabbing, weak auditing and enforcement of standards, and even greenwashing by promoting its logo while allowing certified plantations to continue destructive practices.

Furthermore, the RSPO has been condemned for its conflict of interest by a board and membership dominated by companies, traders, and financiers, with a small percentage of environmental or community groups represented.

Richard George, Head of Forests at Greenpeace UK, “ Consumers are being conned by ‘certified sustainable palm oil’, a phrase that’s bandied about by supermarkets and big brands attempting to distance themselves from deforestation. But the phrase is utterly meaningless because the body responsible for certifying palm oil is made up of some of the most destructive growers and producers in Indonesia. This is a henhouse insurance scheme run by foxes.”

To say this is disappointing is an understatement. Until I started researching this article, I was one of those who believed the RSPO to be the beacon for sustainable palm oil. Now, it seems the RSPO should be looked at as ‘better than nothing,’ while seeking additional transparency from companies (i.e., published supply chain maps, independent audits, progress reports) in addition to RSPO certification. Prioritize brands sourcing from identity-preserved or segregated certified palm oil rather than “mass balance,” which can be mixed with uncertified oil.

Palm Done Right

Palm Done Right logo

All the palm oil produced through Palm Done Right is 100% organic and non-GMO.

The initiative commits to zero deforestation, only expanding production on degraded or previously cleared land, and actively works to restore ecosystems through regenerative agriculture.

Transparency is another core feature — every drop of palm oil is fully traceable from farm to final product, making it difficult to mask unsustainable practices and offering a level of supply chain openness that’s rare in the industry.

Ethical labor is at the center of the organization’s standards. Farmers and workers are paid fairly, given safe working conditions, and supported through community development programs, following fair trade principles. There is a zero tolerance policy on child labor.

By combining organic practices, strong environmental protections, and social responsibility, Palm Done Right shows that palm oil can maintain its high yield and versatility without harming forests, people, or wildlife, making it one of the most credible and ethical palm oil options available.

The biggest limitation for Palm Done Right is its small market share. The company is based in Ecuador, working solely with plantations in the region rather than in Southeast Asia.

Labor certifications

While not specific to palm oil, fair trade certifications offer assurance that companies meet strong labor and human rights standards, with laborers receiving fair pay, safe working conditions,

Fair Trade Certified logo

Fair Trade USA certification promises that a labeled item meets rigorous standards that protect both the livelihoods of those involved in its production as well as the environment.

Fairtrade International supports farmers and workers through a unique pricing model, sets rigorous standards across the supply chain, and fosters strong producer communities through local and regional networks.” This certification is found primarily in food and textiles.

Fairtrade International logo
fair for life logo

The Fair for Life certification values respect of human rights and fair working conditions; respect of the ecosystem and promotion of biodiversity, sustainable agriculture practices, and respect and betterment of local impact.

Sustainable palm oil alternatives

It might still seem easier to avoid palm oil entirely—and in some cases, that’s the right call. Minimizing processed foods is a perfect example. Ultra-processed products are notoriously bad for your health, fueling inflammation while offering little nutritional value and packing in excessive fat, calories, and wasteful packaging. Skip palm oil when it’s not necessary, like in chocolate or peanut butter.

That said, be cautious about cutting it out across the board. In many products, replacing palm oil means turning to alternatives that can be even more damaging to the environment. Even “natural” or “eco-friendly” brands often rely on palm-derived surfactants, so the real key is investigating sourcing just as carefully as you would with any other ingredient.

BestGoodAvoid
Traceable, ethical palm oilBrands with public palm oil sourcing policiesBrands that hide behind “vegetable oil” or say nothing
Certified and transparent brandsRSPO (segregated or identity-preserved) + NDPE commitmentsMass-balance RSPO with no public accountability
Palm-free only when necessary (not knee-jerk)Alternative sustainably-sourced oilsGreenwashed “palm-free” that substitutes worse inputs

Don’t forget to support the people fixing the system. Follow and donate to groups like:

These organizations hold companies accountable, fight land grabs, and support smallholders.

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Final thoughts on sustainable palm oil

The palm oil industry is incredibly complex, and sourcing sustainable and ethical palm oil poses many challenges. But entities like Palm Done Right show us that production can, in fact, be done right, and we should demand these changes.

Do your best to investigate sourcing and support companies that are transparent about their supply chains. Don’t be afraid to ask or call them out when they don’t provide this information. I believe that as with all things sustainable, there is power in numbers and if enough people start making noise and voting with their wallets, things will have to change.

Sustainable palm oil FAQs

What is palm oil?

Palm oil is a type of vegetable oil, derived from the fleshy fruit of the oil palm tree (Elaeis guineensis).

Is palm oil a seed oil?

No, palm oil is not a seed oil. It’s extracted from fruit pulp, not from a seed like sunflower or canola. It’s technically a fruit oil, and its composition, uses, and health impacts differ from those of typical seed oils; it does not share its inflammatory properties.

Where does palm oil come from?

Native to West Africa, palm oil trees grow in tropical climates. Indonesia supplies the majority of the world’s palm oil, followed by Malaysia; together they produce over 85% of global palm oil production.

Is palm oil bad for you?

Palm oil (like its tropical counterpart, coconut oil) contains a high amount of saturated fat, so like butter or shortening, it should be consumed in moderation. Of the palm oils, unrefined red palm oil is the healthiest option, as it is rich in antioxidants like vitamin E and carotenoids such as beta-carotene, and contains no trans fats. But the palm oil consumed in processed foods has been refined, so these nutrients are stripped, leaving a calorie-dense oil with little nutritional value.

Why is palm oil bad?

Palm oil isn’t inherently bad—it’s the management practices that are harmful. Because of palm oil’s wide use, native tropical forests and peatlands are being cleared for plantations. This carries heavy consequences for biodiversity and wildlife, local communities, land quality, and greenhoues gases. There are also serious human rights concerns associated with palm oil labor.

What is palm oil used for?

The majority of palm oil (two-thirds) is used in food manufacturing. Globally, the average person consumes an estimated eight kilograms of palm oil each year! Beauty and personal care products are the other significant user of palm oil, with at least 70% of beauty products containing palm oil in some form.

What are “palm oil rights”?

Palm oil rights are the legal or customary rights to control, use, or benefit from land used for palm oil production. These rights determine who can grow oil palm, access the land, harvest the crop, and receive the profits. In many regions, palm oil rights also involve the rights of local or Indigenous communities to give consent, prevent land grabbing, and receive fair compensation.

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