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Why ‘No Palm Oil’ Labels Are Smart Marketing, but Not Always Smart Nutrition

Angel Investor and Independent Director, Lloyd Mathias, pens his thoughts about the fear-driven 'No Palm Oil' marketing trend, urging a shift toward facts, science, and sustainability.

BY Lloyd Mathias
15th July 2025
Why ‘No Palm Oil’ Labels Are Smart Marketing, but Not Always Smart Nutrition

Walk through any supermarket today and you’ll spot them instantly: sleek snack packets proudly flaunting ‘No Palm Oil’ like a badge of purity. The message hits home, evoking the comforting care of a homemade meal. It feels wholesome and trustworthy. But soon, you notice that every other snack brand on the shelf seems more concerned about your food than you are, and the labels of care and love begin to feel hollow. Welcome to the world of thoughtless trend-mongering, where marketing does more than influence your grocery list. It attempts to steer you away from the real values of nutrition, balance and science, instead playing on fear and doubt, all in the race to boost sales.

For many brands, tapping into consumer preferences for 'free from' claims, offer a compelling marketing advantage. Labels shouting 'palm oil free' often appear even when the absence of palm oil is already clear from the ingredients list. Legally, if an ingredient isn’t in the product, it doesn’t have to be declared. So when brands spotlight the absence of palm oil, it’s less about nutrition and more about narrative.

This taps into a larger phenomenon of healthwashing. It’s when marketing trumps science, using feel-good phrases like 'natural', 'zero fat', and 'immunity-boosting' to create an illusion of health. These claims play to consumer emotions while often ignoring or oversimplifying nutritional science.

Palm oil has become one of the most misunderstood ingredients in this landscape. Blamed for being ubiquitous, from snack packets to street food, its real strengths of versatility, affordability, and heat stability are conveniently brushed aside. And this misperception continues despite sound scientific backing.

In March 2024, India’s Minister of State for Health and Family Welfare, Prataprao Jadhav, told Parliament there is no conclusive evidence on the adverse health effects of palm oil consumption. The ICMR-National Institute of Nutrition recommends consuming a variety of vegetable oils, including palm oil, for a balanced fatty acid intake. The 2024 Dietary Guidelines for Indians clearly says that tocotrienols in palm oil reduce blood cholesterol.

Even so, palm oil is often replaced with alternatives like soybean, sunflower, or hydrogenated vegetable oils, which are substitutes that come with their own health concerns, such as high levels of omega-6 fatty acids or harmful trans fats. Interestingly, research shows that the anti-palm oil campaigns that began in the United States during the mid-20th century were driven more by economic interests than by genuine health concerns. Unfortunately, this negative portrayal of palm oil has since spread globally.

So why does the “No Palm Oil” narrative persist? Because fear sells. Palm oil’s efficiency, performance, and affordability challenge less productive oil industries. Instead of competing on merit, some brands resort to fear-driven messaging, which is amplified by influencers, alarmist headlines, and selective labelling that taps into consumer anxieties while ignoring nutritional facts. In contrast, global leaders like Nestlé, Unilever, and Marico continue to use palm oil, simply because it extends shelf life, enhances flavour stability, and improves texture.

Beyond its functional benefits, palm oil aligns strongly with sustainability goals. It is the world’s most land-efficient vegetable oil crop, yielding four to five tonnes per hectare compared to less than one tonne for soybean. Remarkably, palm oil accounts for 36 percent of global vegetable oil production while using just 9 percent of the land. Replacing it with less efficient alternatives does not lower the environmental footprint, rather it amplifies it.

The implications are even more significant for India. The government is actively investing in domestic palm oil production to reduce import dependence and support local farmers. In states like Telangana, oil palm farmers are already seeing a 50% increase in earnings. Supporting this ecosystem isn’t just good economics; it’s good branding.

The “No Palm Oil” label, while trending, undermines this progress. It works against the efforts of local producers, misleads consumers, and ignores the science. Great brands do not just chase trends; they shape conversations. They invest in transparency, educate their audiences, and stand for long-term value and not quick wins.

Branding is not just about standing out on the shelf. It’s about standing up for what truly matters. That means backing facts, promoting informed choices, and championing sustainability. Real brands must embrace these values, and that change can begin with something as simple as understanding edible oils, including palm oil, better and communicating their use transparently on product packaging.

(All opinions expressed are personal)

  • TAGS :
  • No Palm Oil
  • No palm oil marketing
  • fear marketing

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