How the Rising Price of Palm Oil Could Affect the Cost of Your Beauty Products

Industry NewsHow the Rising Price of Palm Oil Could Affect the Cost of Your Beauty ProductsNew legislation in Indonesia is causing a ripple effect in the cosmetic industry.June 8, 2022How the Rising Price of Palm Oil Could Affect the Cost of Your Beauty Products

The beauty brands in your shopping cart might soon be more expensive after Indonesia's newly- imposed export ban on palm oil.

In May 2022, a day after the government in Jakarta implemented a smaller ban on the export of palm oil for cooking oil, the island expanded its embargo to include crude and refined palm oils that are used in consumer products, like cosmetics. The move, says officials, is designed to tackle rising domestic prices. 

In a video broadcast, Indonesia's President Joko Widodo said he wanted to ensure the availability of food products at home, after global food inflation soared to a record high. Read on for how this ban will affect the products in your routine… and how much it'll cost you. 

Meet the experts: 
  • Ron Robinson, a cosmetic chemist and founder of skincare brand BeautyStat.
  • David Petrillo, a cosmetic chemist and founder of Perfect Image Skincare
  • Ginger King, a cosmetic chemist who has developed color cosmetics and hair and skin-care products.
What is palm oil?

Currently, palm oil is the most widely used vegetable oil on the planet. It's estimated that
worldwide, we each consume around 8 kilograms of palm oil per year, and derivatives from palm trees and their spiky bunches of tangerine-colored fruit. It's used in about 50 percent of our food products – everything from cookies to ice cream and pizza — and it shows up in a whopping 70 percent of U.S. cosmetics. That may not always be obvious from your favorite products' labels, though.

"There are over 200 different names for palm oil-based ingredients, but few have the word 'palm' in them," cosmetic chemist Ron Robinson, tells Allure. "It can be difficult to know if the product you're buying contains palm oil when it shows up as stearic acid or cetearyl olivate on an ingredient list," he adds.

Why is palm oil so popular in beauty products?

To put it simply, palm oil is so ubiquitous in the world of beauty because it's a formulator's
dream. Here's why: A single palm yields two different types of oils: pam oil and palm kernel — each with its own benefits and uses. 

"Palm oil is derived from the reddish pulp of the fruit and palm kernel oil from the seed," says cosmetic chemist David Petrillo. "Although both oils come from the same fruit, they are chemically different and have their own unique properties," he adds.

Palm oil is inexpensive, and touted for its multipurpose uses. "In cosmetics, palm oil helps to smooth out a formulation, has moisturizing properties, and can be used as a stock for foaming agents in shampoo," says cosmetic chemist Ginger King. "Palm oil is great for making lipstick as it holds color well and doesn't melt at high temperatures," she adds. 

As an antioxidant, palm oil also gives products a longer shelf life. "It delivers a potent dose of tocotrienols found in vitamin E, carotenoids, and phytosterols, which have been shown to help fight free radicals and prevent cell damage," notes Petrillo. By contrast, palm kernel oil is semi-solid at room temperature and has a higher fat content, says King, so it's better suited for making soaps. 

Despite its popularity, the use of palm oil in the beauty industry, compared to that of the food
industry, is modest. According to the Roundtable for Sustainable Palm Oil (RSPO) only about 2 percent of the world's palm oil and palm kernel oil production goes into cosmetics, and 3 percent for personal care products. That still means tons of the stuff is used, though. In 2021, L'Oréal alone consumed around 310 tons of palm oil and 90,000 tons of palm oil derivatives. (Editor's note: Allure reached out to the brands mentioned in this story and did not receive comment at the time of publication.)

Should we be using palm oil?

The question of whether we should actually be using palm oil at all is still debated among politicians, scientists, and environmentalists. In one corner are those that point to human rights violations and the felling of large areas of rainforest to make way for palm oil plantations, which has resulted in huge emissions from slash-and-burn practices and the destruction of habitats for endangered Sumatran tigers, rhinos, and orangutans. 

For these reasons, King doesn't directly formulate with palm oil in products she creates, preferring to use coconut oil instead. In the event of a material being derived from palm, King says she insists that it be mass balanced and RSPO-certified to ensure that it has been sustainably produced at every stage in the supply chain.

On the other side of this debate, though, are organizations that say ditching palm oil in favor of grapeseed, soy, or sunflower seed oils wouldn't solve our environmental problem. According to the World Wildlife Fund, palm oil producers supply 40 percent of the world's vegetable oil while using under 6 percent of the land. To get the same amount of oil from other sources, would need anywhere from between four and ten times more farmland.

So, how does this ban impact our beauty products? 

As it stands, Indonesia's restrictions are expected to drive up the prices of both palm oil
and alternative vegetable oils, which are already in short supply due to droughts and
Russia's invasion of Ukraine. So what does all of this mean for your beloved beauty
products?

So far, there's no reason to panic. All of the experts we spoke to agree that empty shelves are unlikely. King believes the restrictions will have a greater impact on the food industry than on cosmetics, although the production of soap and shampoos will be affected most.

"The supply chain has been tough for brands, but luckily in beauty, we have other choices of emollients available to us like oils from avocado, coconut, flaxseed, and cottonseed," she insists. 

That said, you can still expect to pay more for some of your beauty products. "Demand for palm oil will increase prices for companies and that will be passed on to consumers," says King. And given that palm oil is so cheap, some items may become more expensive if brands seek out alternatives like coconut oil to use instead. "A price hike would depend on the usage levels and the grade of coconut oil," says King. "But even if the cost is marginally more, it won't be prohibitively high," she adds.

There may even be a silver lining. Dwindling supplies may give manufacturers pause to
reconsider the origins of their palm oil. Some may join the likes of L'Oréal, Unilever, and
Procter & Gamble – brands that use sustainable palm oil from Indonesia that meets the
RSPO's standards and are committed to achieving a deforestation-free supply chain.
It may even mean marketers shy away from using palm oil altogether and begin looking for
other viable alternatives to include on the ingredient list, say King and Robinson.

"Cosmetic chemists are resourceful and consumer tastes evolve so even if the alternative
isn't identical, they are smart enough to accept the new reality," King adds.

Read more about beauty and the environment here:

  • 38 Refillable Products to Try for a Less Wasteful Beauty Regimen
  • Aluminum Packaging Is Trending in Beauty Right Now. Is It Really Better Than Plastic?
  • Sorry, Environmentally-Friendly Glitter Just Doesn't Exist

Now, watch Dr. Pimple Popper's entire beauty routine:

Fiona Embleton is an award-winning freelance beauty editor with a special interest in fragrance writing. She is a former senior beauty editor for Marie Claire UK and previously held roles at Stylist and Cosmopolitan UK. Her writing has also appeared in international publications such as Elle.com UK, Grazia UK, Women’s Health UK, Harper’s Bazaar Arabia and Vogue Scandinavia. An English... Read moreContributorKeywordsNewspolicyoilenvironmentsustainabilitycosmetic chemists

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Originally posted on: https://www.allure.com/story/palm-oil-ban-beauty-product-price-increase