Why is palm oil used in so many packaged foods and is it safe to eat? Here’s what experts say

Palm oil, extracted from the fruit of oil palm trees, widely used product within the food industry of the world. Its widespread use in packaged edible items has been occasioned by properties unique to the oil that enhance product quality and shelf life. It has a very long shelf life, which does not easily become rancid due to its oxidation resistance. As a result, the oil is ideal for use in snacks that must remain fresh for a long time, such as chips, biscuits, and baked goods.

In India, palm oil is a standardised edible oil permitted for use in packaged foods under food safety regulations. A week ago, Union Minister of State for Health and Family Welfare Prataprao Jadhav also claimed that palm oil's safety is ensured through scientific assessments aligned with internationally recognised Codex Alimentarius standards.

He underscored that under Sub-regulation 2.2 of the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011, it is classified as a standardised edible fat. He further explained that palm oil is regulated under the Food Safety and Standards Act, 2006, by FSSAI.

Is palm oil healthy to consume?

Palm oil is moderately healthy when eaten in small amounts; however, it is high in saturated fat, which can raise bad cholesterol. It is better than artificial trans fats, but worse for your heart than liquid plant oils like olive or canola oil. Harvard nutrition experts explained that palm oil is clearly better than high–trans fat shortenings, along with a probable better choice than butter. But it can't be a top priority to consume.

Meanwhile, several health reports suggest that it is roughly 50 per cent saturated fat (specifically palmitic acid), which can clog arteries, promote inflammation, and raise heart disease risks when consumed heavily. It is widely used in cheap, ultra-processed Indian snacks, instant noodles, and fried fast foods, where excess calories, sugars, and trans fats compound overall metabolic health risks.

Overall, spending on palm oil imports decreased by -5.6 per cent for all importing countries since 2021. Five years earlier, international purchases of palm oil cost $51.8 billion. The 5 biggest importers of palm oil are India, Pakistan, mainland China, the Netherlands and the United States of America.

From a continental perspective, Asian countries imported the highest dollar value of palm oil during 2025, with purchases valued at $28.2 billion or almost three-fifths (57.8 per cent) of the global total. In second place were importers based in Europe at 17 per cent, while another 16.8 per cent of palm oil imported worldwide was delivered to buyers in Africa.

Why is palm oil preferred most?

Palm oil is widely used in packaged snacks because of its long shelf life, neutral taste, affordability and versatility. Its resistance to oxidation helps prevent rancidity, allowing products such as chips, biscuits and baked goods to stay fresh for longer. Since it has a mild, neutral flavour, it does not overpower the natural taste of snacks.

Palm oil is also economical due to its high yield and relatively low production costs. Its semi-solid texture helps provide desirable qualities such as crispness, fluffiness and smooth fillings while maintaining consistency during storage. Its antioxidant properties can further slow spoilage and reduce the need for artificial preservatives.

With a high smoke point, palm oil is well suited for deep-frying snacks. Its widespread availability, particularly from Indonesia and Malaysia, also supports large-scale production. Certified sustainable palm oil offers manufacturers an option to address growing environmental and ethical concerns.

What do experts think about palm oil?

Sumit Roy, Deputy General Manager, Solidaridad Asia, said, "Palm oil presents quite unique properties because of its natural composition: semi-solid at room temperature. It can be divided into lower-melting olein and higher-melting stearin. The stearin provides a hard nature and is used in biscuits, cream filling, or bakery items without relying on partial hydrogenation. Palm-derived fats also have strong oxidative stability, which helps fried or baked products retain texture during distribution and storage."

"Greater oxidative stability reduces quality loss during storage, which is particularly important in India’s warm climate and long distribution chains. Refined palm olein has a high smoke point and can withstand repeated industrial frying better than many more polyunsaturated oils, which oxidise more readily," he added.

Roy claimed that the health concern regarding palm oil is over hyped and lacks substance. He noted that India’s Union Minister of State for Health and Family Welfare has already highlighted that palm oil, which is a fully standardised item permitted to use under national food safety regulations, meets strict safety standards based on comprehensive scientific evaluations.

Sonali Saxena, Sr. Clinical Nutritionist & Diabetes Educator, The Women’s Hospital, said, "Palm oil has become a common ingredient in packaged foods because of its affordability, stability and ability to improve texture and shelf life. Its scale of use in India is significant, with palm oil accounting for about 59% of the country’s edible-oil imports, according to the Department of Food & Public Distribution. Palm oil is relatively high in saturated fat, and diets consistently high in saturated fat can contribute to higher LDL cholesterol and cardiovascular risk. For women, the larger conversation should be about building a sustainable pattern of eating around whole grains, vegetables, fruits, pulses, nuts and other nutrient-dense foods, while reducing dependence on highly processed foods. As per Sonali Saxena, Senior Clinical Nutritionist and Diabetes Educator from TWH hospital, "Learn to read nutritional labels and try to avoid food containing palm oil. You can prefer healthy snacks prepared at home, such as roasted makhana or prefer to eat whole fruits or prefer homemade kala chana chaat or sprouts salads for everyday eating."

Dr Jatinder Singh Bhogal, Sr. Consultant - Gastroentrology&Heptatology, Kailash Deepak Hospital, said, "Palm oil is widely used in packaged foods mainly because it is affordable, easily available, and has a long shelf life. It is also quite stable at high temperatures and gives foods the texture and consistency manufacturers are looking for. That is why it is commonly found in products such as biscuits, chips, baked foods and packaged snacks. From a health perspective, the main concern is its relatively high saturated fat content, particularly palmitic acid. Consuming too much saturated fat on a regular basis can increase LDL, or “bad” cholesterol, which over time may contribute to cardiovascular risk. However, it is important to look at the overall diet rather than palm oil in isolation."

"The bigger concern is often frequent consumption of packaged and ultra-processed foods, which can also be high in calories, refined carbohydrates, sodium and saturated fats. So, it is less about avoiding palm oil completely and more about how much and how often we consume foods containing it. An occasional serving is very different from making such foods a regular part of the diet. Ideally, consumers should focus on a balanced diet and choose foods with healthier unsaturated fats wherever possible," Bhogal added.

Dr Sachin Trivedi, Director Medical Oncology, HCG Cancer Hospital, Colaba, also claimed, "Due to its low cost, high-temperature stability, long shelf life, and favourable texture properties, palm oil finds extensive application in packaging of food products. However, its consumption can lead to an increased intake of saturated fats and thus affect heart health."

Dr Sachin noted that there is currently no clear evidence establishing a direct link between palm oil consumption and cancer. He said the greater concern is the consumption of highly processed foods that may contain excessive levels of saturated fats, sugar, salt and calories. People undergoing cancer treatment or those who have completed treatment should therefore focus on maintaining a balanced diet rather than completely eliminating any particular ingredient.

He advised consumers to check the nutrition labels of food products and assess their overall nutritional content. He recommended prioritising fresh or minimally processed foods, along with adequate portions of fruits, vegetables, whole grains and protein-rich foods.