While the palm oil industry has evolved significantly in recent decades, public skepticism remains, with research finding that many consumers still prefer products labeled ‘free from palm oil’ over those made with ‘sustainable palm oil’.
The industry has been working to address these concerns. In September 2025, the European Union acknowledged the role of Malaysian Sustainable Palm Oil (MSPO) certification—a mandatory accreditation for the country’s entire palm oil production chain—in aligning Malaysia’s practices more closely with EU regulations that prevent the import and export of products linked to deforestation.
Whether the concern is sustainability or nutrition, knowing the facts about this widely used oil is crucial in understanding its role in the global supply chain.
Fact or fiction?
Over the last decade, government action and corporate commitments have curbed deforestation in countries like Malaysia, the second largest producer of palm oil in the world, which has reduced its primary forest loss by 70% between 2014 and 2024. The Malaysian government aims to further contain deforestation through its MSPO certification scheme, which has a no-deforestation cut-off date of December 31, 2019, and prohibits new plantations from being grown on natural forests, protected areas, or High Conservation Value (HCV) areas, demonstrating that palm oil’s growth does not need to come at the cost of rainforests.

To replace palm oil in the global food and product supply with alternate vegetable oils would cause more deforestation, as the oil palm tree—which yields palm oil from the tree’s fruit and palm kernel oil from the fruit’s seeds—is the most land-efficient vegetable oil crop, producing around 2.9 to 3.5 tons of oil per hectare. To put that in perspective, if the world relied solely on palm oil for its vegetable oil consumption, it would need 62 million hectares of land, whereas olive oil would require over 900 million hectares, approximately the same size as the United States.

Smallholders, classified as those with a maximum of 40 hectares of planted land, account for a large portion of the palm oil industry, providing over one quarter of Malaysia’s supply and totaling over seven million individuals around the world. Through government initiatives and training programs from NGOs, the industry provides more diversified and stable income options for rural families across Southeast Asia, Africa, South America, and Papua New Guinea.

Palm oil, which has a 50% saturated fat composition—less than butter’s 64% and coconut oil’s 90%—is among several ingredients linked to the ‘diet-heart hypothesis’ put forward by a physiologist in the 1950s, which supported the widespread belief that saturated fat caused cardiovascular disease. However, later data from the largest-ever epidemiological cohort study that began in 2002 suggest that saturated fat is not associated with the risk of cardiovascular disease mortality, but is rather associated with lower total mortality and a reduced risk of stroke.

Palm oil contains micronutrients such as squalene—a popular skincare and haircare ingredient—and beta-carotene—used to combat vitamin A deficiencies. Furthermore, palm oil is one of the world’s most abundant sources of tocotrienol, a form of vitamin E that is gaining attention for its potential benefits to cognitive, skin, and liver health, and is readily available in supplement and cosmetic products. Beyond the applications of palm-derived tocotrienols in the wellness industry, the ingredient is being studied in cutting-edge medical fields, with researchers like Dr. Chandan Sen, the University’s McGowan Institute for Regenerative Medicine Director, discovering its potential to help treat stroke-related brain damage. The micronutrient is also being studied for its potential health effects in beverages, including how it may help support mental health and genomic stability—a cell’s ability to maintain its DNA—in aging adults.
The palm oil industry shows that with government action, sustainable change is possible. And as the oil continues to evolve—from industry practices to research exploring its nutritional properties—so too should our understanding and approach to this ubiquitous ingredient, which supports the world’s consumer goods economy.
Find out more about Malaysia’s palm oil industry here.



