Sustainable fats: NoPalm Ingredients study shows consumers prefer yeast oil over palm

Yeast oil is significantly more liked than palm oil as an ingredient in Germany and France, a study by biotech company NoPalm Ingredients has revealed. Yeast oil, viewed as healthier and more environmentally friendly than palm oil, also met the action standard for product appeal and purchase intent when used as a fat alternative in margarine.

The findings suggest that food brands can reformulate with yeast oil without risking sales, which the company notes is one of the key barriers to the commercial adoption of fermentation-based oils and fats.

NoPalm Ingredients develops sustainable, palm oil-free alternatives by upcycling agri-food side streams through a fermentation process.

Julie Cortal, chief commercial officer at NoPalm Ingredients, considers the findings a “crucial step” in the commercial outlook for yeast oils in F&B. 

“For our partners, who already understand the strong product and environmental benefits, the question has always been: Will consumers accept it? We now have robust, independent data showing that they do,” she tells Food Ingredients First.

The study, which involved 1,350 participants, was conducted online in the Netherlands, Germany, and France to assess how yeast oil, as an alternative ingredient in margarine, impacts consumer acceptance.

“When asked specifically, ‘How do you like the following ingredients used in the production of this margarine?, liking for yeast oil was twice as high in Germany and three times higher in France compared to palm oil,” says Cortal.

“Overall, about two-thirds of consumers in Germany and France, and half in the Netherlands, rated the use of yeast oil positively.”

Consumers trust fermentation in foods like yogurt and bread, but not yet in oils, says Cortal.

Resonance with consumers

Cortal believes awareness and understanding of fermentation-based oils are significant barriers to their adoption. 

“While fermentation is a familiar and trusted process in foods like yogurt or bread, consumers haven’t yet connected it with oils. Our study showed that 25-26% of respondents in France and Germany consider the type of oil an important driver in choosing margarine, yet many had never heard of yeast oil.”

However, when the benefits of yeast oil were communicated to consumers at the end of the survey, liking as a palm oil replacement increased significantly.

“After learning what yeast oil is and why it matters, appreciation jumped to three-quarters in Germany and France, and two-thirds in the Netherlands,” she notes.

“These are strong signals that yeast oil resonates even more with consumers once they are informed.”

A “step change” in sustainability

Cortal emphasizes that, unlike vegetable oils, NoPalm Ingredients’ yeast oil is disconnected from land use, which is one of the biggest environmental concerns with palm oil. 

According to the European Palm Oil Alliance, palm oil contributes 2.3% of global deforestation.

It is also a major driver of deforestation in tropical regions, particularly in Indonesia and Malaysia. Between 2000 and 2021, the oil palm harvested area increased by 650% in Indonesia and 50% in Malaysia.

“Global demand for oils is increasing, and there simply isn’t enough land to sustainably meet it,” says Cortal.

“At NoPalm Ingredients, we produce oil through fermentation using agri-food side streams, turning a waste problem into a resource. Our life cycle analysis confirms a 90% reduction in CO2 emissions compared to palm oil. It’s a step change in sustainability.”

Palm oil cultivation is one of the major drivers of deforestation in tropical regions, especially in Indonesia and Malaysia.

Eyeing regulatory compliance

The study evaluates consumer response to yeast oil in an everyday food product, margarine, and offers “both commercial validation and regulatory direction,” according to the Dutch firm.

“We will actively engage with regulators to ensure compliance, and these findings support a labeling approach that is both transparent and understandable to consumers,” says Cortal.

Options such as “Oil of Yeast Origin” and “Yeast Oil” were well accepted as ingredient names in the consumer study, and “could become preferred labeling choices aligned with regulatory requirements.”

The company aims to build familiarity through “clear, accurate, and widely accepted terminology,” she adds.

From “theory to market”

Cortal believes the study sets a precedent for sustainable oil alternatives by showing that the next generation of oils can “overcome consumer skepticism when introduced in the right way.”

“This data takes us from theory to market. It shows that yeast oil not only delivers technically, but can also win with consumers. That’s a major commercial unlock.”

She adds that sharing the company’s insights on labeling, communication, and acceptance can help the industry accelerate the shift to sustainable oils.

The company is now focused on its “first demonstration factory,” set to be operational in 2026. “Next to this, we recently launched our Revóleo portfolio with sustainable fermentation-based oil and fat solutions for food and personal care, and we will have the first products on the market next year.”

“We’ll be sharing more exciting news in the coming weeks as we deliver crucial milestones of our commercial and technical roadmap to bring yeast oil to the market,” she concludes.