# Factbox – From spreads to shampoo, palm oil is part of everyday life
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-04-22
Category: LIFESTYLE
Category URL: https://financedigest.com/category/lifestyle
Meta Title: How Indonesia's palm oil export ban impacts top food
Meta Description: Indonesia's plan to ban palm oil exports will hit key brands like Unilever, Nestle, and Procter & Gamble. Discover how these companies are affected.
URL: https://financedigest.com/factbox-from-spreads-to-shampoo-palm-oil-is-part-of-everyday-lifehtml

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(Reuters) – Indonesia’s plan to ban palm oil exports will deal a blow to the world’s top food and consumer products companies including Unilever, Procter & Gamble and Nestle.

Indonesia counts for more than half of the global supply of the edible oil, which is used in everything from cakes, chocolate, margarine and frying fats to cosmetics, soap, shampoo and cleaning products.

It is also key to Ferrero Rocher chocolates and Nutella spread, giving them a smooth texture and longer shelf life.

Here is a summary of how much palm [oil companies](https://www.financedigest.com/exxon-sues-eu-in-move-to-block-new-windfall-tax-on-oil-companies.html "Exxon sues EU in move to block new windfall tax on oil companies") use, based on the most up-to-date data available:

UNILEVER

Unilever said in 2016 that it used about 1 million tonnes of crude palm oil and its derivatives and about 0.5 million tonnes of crude palm kernel oil and its derivatives.

It said it was the largest user of physically certified [palm oil](https://www.financedigest.com/watchdogs-new-chief-says-high-prices-can-support-greener-palm-oil.html "Watchdog’s new chief says high prices can support greener palm oil") in the consumer goods industry.

The [company declined](https://www.financedigest.com/around-40-of-german-companies-expect-output-decline-in-2023-iw-institute.html "Around 40% of German companies expect output decline in 2023 – IW institute") to give more up-to-date data.

NESTLE

In 2020, the maker of KitKat chocolate bars bought about 453,000 tonnes of palm [oil](https://www.financedigest.com/the-palm-oil-market-to-witness-calculated-innovation.html "The Palm Oil Market To Witness Calculated Innovation") and palm kernel oil, mostly from Indonesia and Malaysia, its website says.

It uses about 88 suppliers from more than 1,600 mills in 21 countries. It also buys from [Latin America](https://www.financedigest.com/new-office-expansion-enables-vaisala-to-accelerate-growth-in-industrial-and-environmental-measurements-businesses-professional-services-and-customer-support-the-new-office-will-cater-for-all-vaisala.html "New office expansion enables Vaisala to accelerate growth in industrial and environmental measurements businesses, professional services and customer support. The new office will cater for all Vaisala’s customers in the Latin America region."), Africa, and other parts of Asia.

PROCTOR & GAMBLE

The company used about 605,000 tonnes of palm oil and palm kernel oil, and their derivatives, in its 2020-2021 fiscal year, a company document showed. It is used in its fabric and [home care](https://www.financedigest.com/the-home-care-services-market-to-get-pushed-based-on-digitization.html "The Home Care Services Market to get pushed based on digitization") categories and beauty products.

Its purchases account for about 0.8% of global palm oil [production](https://www.financedigest.com/best-paying-jobs-in-oil-and-gas-production.html "Best Paying Jobs in Oil And Gas Production") and it sells palm oil byproduct it cannot use. Some 70% of its [palm oil is sourced from refineries in Malaysia](https://www.financedigest.com/explainer-why-malaysia-is-considering-a-ban-on-palm-oil-exports-to-the-european-union.html "Explainer-Why Malaysia is considering a ban on palm oil exports to the European Union") and Indonesia.

MONDELEZ INTERNATIONAL

The Oreo cookie maker said that it purchases “large quantities” of palm oil in a securities filing.

It accounts for 0.5% of palm [oil consumption globally](https://www.financedigest.com/global-stocks-close-in-on-4-week-highs-oil-rises-on-hopes-of-soft-landing.html "Global stocks close in on 4-week highs, oil rises on hopes of ‘soft landing’"), according to its website.

DANONE:

Danone said it purchased a total of 71,000 tonnes of palm oil in 2018.

FERRERO:

The Italian maker of Nutella sourced 85% of its palm [oil supplies](https://www.financedigest.com/oil-prices-rise-as-china-eases-covid-curbs-u-s-storm-fuels-supply-worries.html "Oil prices rise as China eases COVID curbs, U.S. storm fuels supply worries") from Malaysia and only 9% from Indonesia in the first half of 2021, according to its website.

L’OREAL:

L’Oreal said in a 2018 [report that it uses less than 370 tonnes of palm oil](https://www.financedigest.com/bank-funding-for-renewables-stagnates-vs-oil-and-gas-report.html "Bank funding for renewables stagnates vs oil and gas – report") per year but it purchases derivatives of palm oil and kernel oil equivalent to 71,000 tonnes.

(Reporting by Josephine Mason and Richa Naidu in London, Mimosa Spencer in Paris, Jessica DiNapoli in New York and Silvia Aliosi in Milan; Editing by Alexander Smith)


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