Today, cosmetic products are much more than just skincare – they reflect the values and decisions of consumers. Sustainability, transparency and environmental awareness are becoming increasingly important. One expression of this change is the trend towards palm oil-free formulations. But what is behind this development and how can functionality and sustainability be harmonised?
Sustainability in the Cosmetics Industry
Palm oil is one of the most discussed raw materials in the cosmetics industry. Due to its versatile properties, palm oil is used for the production of emulsifiers, moisturizers and surfactants and is therefore an ingredient in many products from creams to shampoos. In terms of ethics, working conditions on palm oil plantations are often criticized. Reports of unfair wages, unsafe working conditions and the exploitation of workers have led to calls for greater transparency and accountability. These problems underline the urgent need for sustainable palm oil cultivation and alternative ingredients that take both environmental and social concerns into account. Manufacturers are increasingly expected to conduct rigorous supply chain audits and prioritize sustainable sourcing practices to meet changing consumer expectations.
According to recent studies, the market for palm oil-free skincare products has grown significantly, especially in regions such as North America and Europe.1,2
Palm oil free cosmetics
Palm oil-free cosmetics completely dispense with palm oil and raw materials made from palm oil – these include surfactants and emulsifiers, for example. It is important to emphasize that a product is not automatically more sustainable just because it is palm oil-free. Therefore, the alternative must offer a real improvement in terms of environmental performance as well as maintaining the desired functionality. Consumers do not expect quality to be compromised, even if environmentally friendly options are chosen.
Consumer demand for palm oil-free cosmetics
The consumer perspective shows a clear trend towards greater environmental and social awareness. The focus is on sustainable and palm oil-free cosmetic products.
Sustainability and ethical standards:
Most consumers want to ensure that the products they use do not have a negative impact on the environment. Transparency on social aspects, such as labour conditions and plantations, plays a major role. Consumers appreciate brands that disclose their supply chains and take responsibility for fair conditions for the people behind the products.³
Transparency and clear labelling:
Consumers expect clear and honest information on ingredients and their origin. Palm oil-free cosmetics are often equated with greater transparency, as companies focus on alternative, sustainable raw materials and emphasise these in their communication. Products labelled ‘palm oil free’ or ‘certified sustainable’ are preferred as they provide more transparency and trust.³
Animal welfare:
Another important aspect is the desire to reduce animal suffering. Palm oil production from non-certified plantations can lead to the destruction of valuable habitats, which in turn threatens endangered species such as orangutans. Protecting these ecosystems is therefore not only crucial for environmental sustainability, but also an important responsibility towards wildlife.³
Individual motives:
Many consumers associate palm oil-free products with a higher degree of purity and naturalness. This perception is reinforced by the ‘clean beauty’ movement, which focuses on minimalist and transparent ingredients. Consumers are looking for products without controversial ingredients and favour those with clearly comprehensible, plant-based alternatives.
The desire to organise their own personal care in line with ethical and sustainable principles also plays an important role.
This trend shows how strongly personal and ecological motives are linked and how palm oil-free products can appeal to consumers on an emotional level.
Challenges and opportunities for manufacturers and formulators
The transition to palm oil-free cosmetics can bring many benefits, but it requires careful planning and targeted measures to ensure the sustainability of the raw materials used in the long term.
The replacement of palm oil with alternative raw materials must be carefully considered to avoid potential environmental challenges. It is crucial that the alternatives used not only come from sustainable cultivation, but also have comparable functional properties to ensure a balance between ecological and production requirements.
Here are some of the key factors that should be considered:
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Technological challenges
Palm oil is used in the cosmetics industry as a raw material for the production of emulsifiers, moisturisers and consistency agents, which means it is used in many formulations. Replacing palm oil with other sources is technically demanding, as the challenge lies in finding an alternative raw material with similar functional performance without reducing product quality. On the one hand, it is important that the manufacturing process of the alternative raw material is sustainable so that the raw material to be produced complies with natural cosmetics standards. On the other hand, production should also be so efficient that the alternative product can be offered cost-effectively.
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Sustainability and raw material selection
The choice of sustainable raw materials is crucial for the production of palm oil-free cosmetic products. Instead of simply switching to rapeseed or soya, companies should focus on a diversified range of raw materials that do not require large-scale monocultures and cause less land use. Biotechnology also opens up new possibilities. Here, raw materials can be produced from waste products from other industries or through biotechnological processes, which minimises the need for new arable land and reduces waste at the same time. Another sustainable option is agroforestry, in which plants such as oil palms are grown in mixed cultures with other trees to reduce the ecological footprint. The responsible use of raw materials is therefore an integral part of sustainable cosmetics production.
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Requirements and transparency
In addition to the technological and logistical challenges, manufacturers must ensure that their products comply with regulatory requirements. Customers want to be able to understand which ingredients are used, where they come from and how they are produced. Labels play a decisive role here, as they provide orientation and create trust. Certificates such as the “RSPO seal” (Roundtable on Sustainable Palm Oil) for sustainable palm oil or specific “palm oil-free” labels promote the credibility of a product. Labels such as COSMOS or NATRUE also set strict standards for the selection of ingredients and promote awareness of sustainable alternatives.
Our answer: palm oil-free alternatives
In response to the increasing demand for more sustainable products, we have expanded our range to include palm oil-free alternatives. This enables us to meet our customers’ various wishes for environmentally conscious and cruelty-free options.
At the same time, we are maintaining our responsible use of palm oil: In products where it is not currently possible to avoid palm oil for technical or formulation reasons, we continue to use RSPO-certified palm oil. This ensures that our palm oil comes from sustainable and ethically responsible sources. More information here.
Our two palm oil-free alternatives Cosphaderm® Propanediol natural palm free and Cosphaderm® LAT-palm free are made from maize and rapeseed respectively and have been proven to offer the same effectiveness as the palm oil-based product variants.
Cosphaderm® LA-T palm free is a multifunctional antimicrobial blend of natural levulinic acid and its sodium salt, dissolved in water and glycerine. This combination of a mild organic acid and a classic humectant derived from maize and rapeseed offers convincing antibacterial efficacy combined with remarkable skin moisturising properties.
Cosphaderm® Propanediol natural palm free
Cosphaderm® propanediol natural palm free from corn can be used as a humectant and booster for preservation in concentrations of 1.0 % to 5.0 % and is ideal for innovative, palm oil-free formulations that meet the highest standards of sustainability and efficacy.
Let us advise you on possible fields of application.
Sources
¹ Meijaard et al., Nature Ecology & Evolution, 2020
² Future Market Insights, globale Marktanalysen zur Nachhaltigkeit in der Hautpflege, 2024
³ Future Market Insights, Skincare Market Outlook for 2024 to 2034, 2023