Why Companies Still Use Palm Oil in the Global Marketplace

Palm oil has become a ubiquitous ingredient in a variety of products, from food to cosmetics, due to its versatile properties and low cost. Companies continue to utilize palm oil for its ability to eliminate oil and debris from hair and skin as well as its hydrating qualities. However, this widespread use raises significant concerns about sustainability, health impacts, and environmental degradation.

The Versatility and Economic Impact of Palm Oil

Palm oil has grown in popularity in the global market as the ideal component for numerous industries, the prime export for developing nations, and a crucial product in the interconnected world. In the food industry, palm oil's high melting point at room temperature in temperate countries makes it a low-cost alternative to butter or hydrogenated vegetable oils, particularly suitable for applications requiring solid fat, such as pastry dough and baked goods.

Palm oil's high content of saturated fats (50%) predominantly includes Palmitic Acid (44% of fats). This high heat stability contributes to its superior texture in baked goods. Yet, its composition raises critical concerns: Palmitic Acid is highly associated with high LDL cholesterol, the promotion of cancer metastasis, and significant deforestation for agriculture. Moreover, it disrupts cellular mitochondrial function, leading to de novo lipogenesis, a process that can result in obesity.

Health Concerns Associated with Palmitic Acid

Research conducted in the 1970s by Ancel Keys, a Harvard scientist, suggested that saturated fats, particularly Palmitic Acid, could be detrimental to health. In response, the US dairy industry removed saturated fats and replaced them with Palmitate (Palmitic Acid), inadvertently leading to increased cholesterol levels and mitochondrial dysfunction in the population. This has led to the unintended promotion of chronic conditions like insulin resistance and glucose metabolism issues, contributing to the acceleration of neurodegenerative processes such as Alzheimer's and Parkinson's.

Reflecting on Sustainable Alternatives

Despite these concerns, palm oil remains a cheaper substitute material or filler ingredient due to its low production costs. For instance, it is cheap because of low labor costs, available land, minimal government regulations, and no significant land-use controls. Additionally, the rapid deforestation driven by the palm oil industry for cultivation is a major environmental concern.

However, there are sustainable alternatives to traditional palm oil. Sustainable palm oil, which involves responsibly planted palm oil tree plantations, offers a more environmentally friendly option. Organizations like the Roundtable on Sustainable Palm Oil (RSPO) promote the use of sustainable palm oil to reduce the negative environmental impact of the industry. While sustainable palm oil is a step in the right direction, it is essential to continue pushing for more comprehensive sustainable practices.

Companies need to weigh the benefits of cost efficiency and market demand against the environmental and health risks. Sustainability initiatives, such as reforestation and improving labor standards, can help mitigate the harmful effects of palm oil production. Consumers and businesses alike are increasingly favoring products that adhere to ethical and sustainable practices, driving a shift towards more responsible manufacturing and consumption.

Conclusion

While palm oil continues to be a dominant player in the global marketplace due to its versatility and affordability, the persistent issues surrounding its production and use warrant careful consideration. Companies must explore sustainable alternatives and adopt more environmentally and health-conscious practices to ensure the long-term viability and sustainability of their operations.