Beyond Cooking: 10 Surprising Industrial Uses of Palm Oil

When most people think of palm oil, they picture cooking pots, frying pans, and Africa’s bustling markets. But in today’s global economy, palm oil is far more than a kitchen staple. It has become a multi-billion-dollar industrial commodity powering everything from cosmetics to renewable energy. According to the USDA, global palm oil production is projected to hit 80 million metric tonnes in 2025, with Nigeria contributing a fast-rising share. While more than half goes into food consumption, the other half fuels industries you might not expect.

This article explores 10 surprising non-food uses of palm oil, why global businesses rely on it, and how African producers — especially Nigeria — can capture more value beyond cooking oil.

1. Biofuel & Renewable Energy

Palm oil is increasingly refined into biodiesel and bio-jet fuel, serving as an alternative to fossil fuels.

• Fact: In 2024, the EU imported over 7 million tonnes of palm oil for biodiesel blending.

• Case Study: Finland’s Neste Corporation, the world’s largest biodiesel producer, uses palm oil derivatives in its renewable diesel products.

• Africa Connection: With Nigeria pushing its energy transition plan, palm oil could be part of its renewable mix, powering buses, generators, and even airlines.

2. Cosmetics & Personal Care

From lipsticks to shampoos, palm oil is a quiet superstar in the beauty industry. Its derivatives — especially palmitic acid and stearic acid — provide smooth texture, longer shelf life, and foaming effects.

• Fact: Over 70% of cosmetics on supermarket shelves contain some form of palm oil derivative.

• Company Example: L’Oréal and Unilever use sustainable palm oil in skincare and haircare lines.

• Why It Matters: Nigerian palm oil farmers could plug into the booming $530 billion global beauty market by supplying certified, traceable palm oil for cosmetic use.

3. Pharmaceuticals

Palm oil plays a role in drug manufacturing, particularly in producing capsules, ointments, and vitamin supplements.

• Fact: Vitamin E tocotrienols, extracted from palm oil, are powerful antioxidants used in health supplements.

• Company Example: BASF, a German chemical giant, uses palm-derived glycerin in pharmaceuticals.

• Market Insight: With the Nigerian pharmaceutical sector projected to reach $5 billion by 2030, there’s a strong opportunity for local partnerships.

4. Detergents & Cleaning Products

Palm oil derivatives such as sodium lauryl sulfate (SLS) are critical in soaps, detergents, and household cleaners.

• Fact: More than 50% of liquid soaps and laundry detergents use palm oil derivatives for lathering and emulsification.

• Company Example: Procter & Gamble sources palm oil for its brands like Ariel and Tide.

• Nigeria Link: With a population of 220 million, Nigeria’s detergent market is worth $900 million annually — a massive demand driver for palm oil–based ingredients.

5. Packaging & Bioplastics

Palm oil is now being used to make biodegradable plastics, offering a sustainable alternative to petroleum-based plastics.

• Fact: Global bioplastics market is projected to grow to $20 billion by 2030, with palm oil-based inputs driving part of this growth.

• Case Study: Researchers in Malaysia have developed palm oil–based biopolymer films for food packaging.

• Future Outlook: If Nigeria’s palm oil is harnessed for bioplastics, it could tap into Africa’s $4 billion plastic waste recycling market.

6. Industrial Lubricants

Palm oil derivatives are used in lubricants and greases for engines, machinery, and aviation because of their high oxidative stability.

• Fact: Palm-based lubricants are more biodegradable than mineral oils, making them eco-friendly.

• Company Example: PETRONAS has tested palm-oil-based lubricants in Malaysia’s automotive sector.

• Nigeria Opportunity: As industries grow, Nigeria’s demand for lubricants is projected at 700 million liters annually — a new market for palm derivatives.

7. Paints, Inks & Coatings

Palm oil is used to make alkyd resins, a key ingredient in paints, varnishes, and inks.

• Fact: Over 30% of alkyd resins globally are made from palm oil derivatives.

• Industry Example: African paint makers like Berger Paints Nigeria Plc could cut costs by sourcing palm oil domestically for resin production.

• Sustainability Factor: Eco-friendly paints made from palm oil resins could position Nigerian products for export.

8. Candle & Wax Production

Palm stearin, a by-product of palm oil refining, is widely used in candle making.

• Fact: Palm-based candles burn longer and emit less smoke than paraffin candles.

• Market Example: The global candle industry is worth $13 billion, with palm oil providing a major raw material.

• Nigeria Angle: Local artisans are increasingly using palm stearin for affordable candles sold across Africa.

9. Animal Feed

Palm kernel cake (a by-product after oil extraction) is a high-protein feed for cattle, poultry, and fish.

• Fact: Nigeria produces 1.2 million tonnes of palm kernel cake annually, much of which goes into livestock feed.

• Company Use: Poultry farms in Ogun State already rely on palm kernel cake as a cheaper substitute for soymeal.

• Future Potential: With Africa’s livestock feed market set to reach $35 billion by 2030, palm oil by-products could play a central role.

10. Renewable Chemicals & Bio-based Materials

Palm oil is increasingly used in oleochemicals, the backbone of industries producing adhesives, coatings, surfactants, and even explosives.

• Fact: The global oleochemicals market is valued at $35 billion, with palm oil as its largest raw material.

• Company Example: KLK Oleo produces fatty acids, glycerin, and esters from palm oil.

• Nigeria’s Edge: By developing local oleochemical plants, Nigeria could shift from raw palm oil exports to high-value industrial exports.

📊 Palm Oil: From Kitchen to Boardroom

Palm oil has clearly outgrown its traditional image as a cooking ingredient. Today, it powers:

• Renewable energy
• Beauty & personal care
• Pharmaceuticals
• Industrial manufacturing
• Sustainable packaging

Nigeria — with its rising palm oil production and government push for non-oil exports — has a rare chance to join the global industrial palm oil value chain.

But to succeed, three things are critical:

1. Traceability (NaPOTS system) – to meet international standards.

2. Infrastructure investment – roads, ports, and processing plants.

3. Private sector partnerships – linking farmers with global industrial buyers.

The question for policymakers, investors, and farmers alike is simple:
👉 Will Nigeria remain a raw exporter, or will it build industries to capture the $100 billion global palm oil value chain?