Palm Oil: Production, Uses, and Environmental Impact

Palm oil is a versatile edible vegetable oil extracted from the reddish mesocarp (the fleshy pulp) of the fruit of the African oil palm, scientifically known as Elaeis guineensis. Due to its stability and consistency, it has become a cornerstone of the global food and beauty industries. In 2017, palm oil accounted for approximately 36% of all global oils produced from oil crops.

For the average consumer, palm oil is nearly omnipresent. In 2015, global per capita consumption reached an average of 7.7 kg (17 lb). Its popularity among food manufacturers stems from its ability to maintain flavor and quality in ultra-processed foods more effectively than many alternatives.

Key Facts

Origin: Derived from the pulp of the African oil palm fruit.
Global Reach: Accounted for 36% of global oil crop production in 2017.
Primary Uses: Food manufacturing, cosmetics, beauty products, and biofuels.
Major Producers: Indonesia and Malaysia are the dominant global producers.
Sustainability: The RSPO (Roundtable on Sustainable Palm Oil) certifies sustainable production to mitigate environmental damage.

History and Traditional Use

The use of oil palms dates back 5,000 years. Archaeological evidence from a tomb in Abydos, dating to 3,000 BCE, suggests that palm oil was utilized in ancient civilizations. While industrial production is now global, artisanal production remains common in regions like Ghana and the Democratic Republic of the Congo, where it serves as a staple for traditional cooking and handicrafts.

Palm oil production is done in some parts of the world artisanally, and the locally produced oil is used for food, handicrafts and other products. This woman in the Democratic Republic of the Congo is showing the palm fruit above a pot for processing the fruit.

Applications of Palm Oil

Food and Consumer Products

Palm oil is favored in the food industry for its stability. Beyond cooking, it is a primary ingredient in a vast array of non-food consumer products, particularly in the cosmetics and beauty sectors.

Palm oil is one of the most commonly produced vegetable oils

Biofuels and Biomass

The demand for renewable energy has led to the use of palm oil as a feedstock for biofuels. However, this has sparked a "food vs. fuel" debate, as land used for energy crops may compete with land needed for food production.

Medical Use

Palm oil has also been utilized in wound care applications.

Production and Processing

Palm oil production occurs across several tropical nations, with Indonesia and Malaysia leading the market. In 2014, Indonesia alone accounted for 40% of global production. Other producing countries include Nigeria, Thailand, Benin, Cameroon, Colombia, Ecuador, Ghana, Kenya, and Myanmar.

Processing Methods

The oil is extracted from the fruit pulp, while a separate product, palm kernel oil, is derived from the seed (kernel) of the fruit.

Left, reddish palm oil made from the pulp of oil palm fruit. Right, clear palm kernel oil made from the kernels

Sustainability and Certification

To combat the negative effects of mass production, the Roundtable on Sustainable Palm Oil (RSPO) was established. Products containing Certified Sustainable Palm Oil (CSPO) can carry the RSPO trademark. In 2016, approximately 51,999,404 tonnes of palm oil fruit were RSPO certified.

Environmental and Social Impact

A palm oil mill located on a palm oil plantation in Malaysia

The rapid expansion of palm oil plantations has led to significant environmental and human rights concerns. The industry is a major driver of deforestation in tropical regions, particularly in Borneo and Indonesia, where native forests are replaced by monoculture plantations.

In Borneo, the forest (F), is being replaced by oil palm plantations (G). These changes are irreversible for all practical purposes (H).

These environmental changes are often irreversible and lead to a loss of biodiversity. Furthermore, the industry has been linked to human rights violations, including the infringement of indigenous territorial rights and the use of child labor, particularly in smallholder farming within post-colonial contexts in Africa.

The palm oil industry has a history of violating labor-related human rights, indigenous territorial right and environmental rights of communities in the contexts where the industry is prominent. Child labor violations are common in smallholder farming in many of the post-colonial contexts (such as Africa) in which palm oil is produced.

Deforestation in Indonesia, to make way for an oil palm plantation[8]

Nutritional Composition

A satellite image showing deforestation in Malaysian Borneo to allow the plantation of oil palm

Palm oil is characterized by a specific blend of saturated and unsaturated fatty acids. It is also rich in carotenes, which give the unrefined oil its reddish color.

Approximate Concentration of Esterified Fatty Acids in Palm Oil
Type of Fatty Acid	Fraction (%)
Palmitic (Saturated C16)	43.5%
Oleic (Monounsaturated C18:1)	36.6%
Linoleic (Polyunsaturated C18:2)	9.1%
Stearic (Saturated C18)	4.3%
Myristic (Saturated C14)	1.0%
Other/Unknown	5.5%

Frequently Asked Questions

An oil palm stem, weighing about 10 kg, with some of its fruits picked

Red palm oil being sold on the roadside in plastic bottles in Ghana. Artisanal production of palm oil is common there, providing a key staple food stuff in most traditional cooking.

A worker walking near the border of an oil mill in Malaysia. Palm oil production is an important part of economies in many parts of rural Malaysia, but is also a source of environmental conflict.

What is the difference between palm oil and palm kernel oil?

Palm oil is extracted from the reddish pulp (mesocarp) of the fruit, whereas palm kernel oil is extracted from the seed (kernel) located at the center of the fruit.

Why do food manufacturers prefer palm oil?

Manufacturers favor palm oil because it is easier to stabilize and helps maintain the consistency and flavor of ultra-processed foods.

How does palm oil affect the environment?

Mass production often leads to large-scale deforestation in tropical regions, resulting in habitat loss for wildlife and the irreversible destruction of native forests.

What is RSPO certification?

The Roundtable on Sustainable Palm Oil (RSPO) provides certification for palm oil produced using sustainable practices, allowing products to carry the CSPO (Certified Sustainable Palm Oil) trademark.

Which countries are the largest producers of palm oil?

Indonesia and Malaysia are the world's leading producers, with Indonesia accounting for 40% of global production as of 2014.