Palm Oil in Processed Foods

Palm oil is a widely used ingredient found in a vast array of processed food and consumer products. Its presence in everyday items like chocolates, biscuits, cakes, soaps, shampoos, and cleaning products underscores its significance in the Fast Moving Consumer Goods (FMCG) sector. 

Did you know that in products like instant noodles, palm oil can comprise up to 20% of the total weight according to this NDTV Profit article.

Palm oil constitutes a significant portion of the raw material costs for many FMCG companies. 

For giants like Hindustan Unilever Ltd. (HUL), this essential ingredient can make up 15-20% of their total raw material expenses, while it is even higher for Britannia and Nestle.

HUL obtains its supply from its subsidiary, Unilever Oleochemical Indonesia. 

The recent 12% surge in palm oil prices, representing a 46% year-on-year increase, has put a strain on these companies, squeezing their profit margins. 

To mitigate the impact of rising prices, companies with significant palm oil dependence are implementing incremental price increases across their product portfolios to balance cost management with consumer affordability.

More shocking facts from this Food Pharmer video -

• India is the largest importer of Palm oil. 
• India heavily relies on palm oil imports to meet its domestic demand
• Palm oil and its derivatives, such as palmolein oil and refined palm oil (click on the links to see products), are commonly used in various food products.