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Palm Oil

Palm oil is an edible vegetable oil extracted from the fruit of oil palm trees, especially *Elaeis guineensis*.

By Ethan Anderson| Reviewed by Olivia Bennett, Standards & Fact-Checking Lead| Updated July 26, 2026|2 min read| Fact-checked

Palm oil is an edible vegetable oil extracted from the fruit of oil palm trees, especially Elaeis guineensis. It is widely used in food products, cosmetics, and other manufactured goods, and is a major global commodity. Palm oil production is also associated with environmental concerns, particularly deforestation and habitat loss in tropical regions.

Description

Palm oil is a vegetable oil made by pressing the fruit of oil palm trees. It is naturally semi-solid at room temperature and is used because of its stability, texture, and versatility in manufacturing. Palm oil comes from the fleshy fruit of oil palm trees rather than the seed. Two main oils are produced from the fruit: palm oil and palm kernel oil.

Production and major growers

Oil palms grow in tropical climates near the equator. The oil palm tree is native to Africa but is now cultivated widely in tropical regions. Commercial production is concentrated in Indonesia and Malaysia, which account for most global output. Palm oil is one of the highest-yielding oil crops per hectare.

Uses

Palm oil is widely used in processed foods such as margarine, baked goods, chocolate, and confectionery, as well as in personal care products like shampoo, soap, and cosmetics. It is also used in some biofuels. Palm oil is used in many packaged foods and consumer products.

Environmental concerns

Palm oil expansion has contributed to deforestation, land conversion, and habitat loss in some tropical forests. This has raised concerns for endangered species and biodiversity conservation. Production has been linked to deforestation in biodiversity-rich forests.

Nutrition and composition

Palm oil contains both saturated and unsaturated fatty acids, with a relatively high proportion of saturated fat. Some unrefined forms contain carotenoids and vitamin E compounds.

Key facts

  • Palm oil comes from the fleshy fruit of oil palm trees rather than the seed.
  • Two main oils are produced from the fruit: palm oil and palm kernel oil.
  • The oil palm tree is native to Africa but is now cultivated widely in tropical regions.
  • Palm oil is used in many packaged foods and consumer products.
  • Production has been linked to deforestation in biodiversity-rich forests.
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Canadian context

Palm oil is relevant in Canada because it is common in imported packaged foods, cosmetics, and household products, and Canadian consumers and retailers often encounter sustainability and deforestation concerns linked to palm oil sourcing.

Frequently asked questions

What is palm oil made from?
Palm oil is made from the fleshy fruit of oil palm trees, especially Elaeis guineensis.
What is the difference between palm oil and palm kernel oil?
Palm oil comes from the fruit pulp, while palm kernel oil comes from the seed or kernel in the middle of the fruit.
Where is palm oil mainly produced?
The largest producers are Indonesia and Malaysia.
Why is palm oil used so widely?
It is inexpensive, highly productive per hectare, and has useful properties for food and consumer product manufacturing.
What are the main environmental concerns?
Palm oil expansion has been linked to deforestation, habitat loss, and threats to wildlife in tropical forest regions.
Is palm oil the same as coconut oil?
No. Palm oil comes from oil palm fruit, while coconut oil comes from coconuts.

References

  1. WWF UKhttps://www.wwf.org.uk/updates/8-things-know-about-palm-oil
    Supports: Palm oil definition, two oils from the fruit, African origin, and deforestation concerns.
  2. EUFIChttps://www.eufic.org/en/healthy-living/article/palm-oil-qa
    Supports: Palm oil uses in food, physical properties, composition, and global consumption context.
  3. Sustainable Palm Oil Choicehttps://www.sustainablepalmoilchoice.eu/facts-on-palm-oil/
    Supports: Oil palm growing regions, yield efficiency, and major producing countries.
  4. Natural History Museumhttps://www.nhm.ac.uk/discover/palm-oil-controversial-ingredient-in-nearly-everything.html
    Supports: Palm oil uses, main species, and widespread presence in consumer products.
  5. PubMed Centralhttps://pmc.ncbi.nlm.nih.gov/articles/PMC6331788/
    Supports: Global production share and composition context.