By Norman Ellard

OHIO, US: In a wide-ranging conversation, Norman Ellard, Global Director of Oleochemical Development and Innovation, ICOF America Oleochemicals Inc., USA outlines why palm oil often misunderstood and politically contested as it remains one of the world’s most efficient, future-ready feedstocks for the expanding global oleochemical industry.

Ellard begins by noting that consumer perceptions are slowly shifting as the industry moves “towards new roots” that reinforce palm oil’s strengths.

“When people see the facts, palm oil’s profile improves dramatically,” he says. “It’s productive, versatile, and the backbone of a long-established, highly efficient oleochemical value chain.”

Why Oleochemicals?

Simply put, oleochemicals are chemical compounds derived from natural, renewable fats and oils, which in this case, palm oil.

Palm-based oleochemicals are more than just industrial compounds — they are the human link between nature and modern living. Derived from renewable fats and oils such as palm oil, they power our daily lives through the essentials we often take for granted — soaps that protect our health, shampoos that bring comfort, and sustainable materials that reduce our impact on the planet.

Industrially, palm-based oleochemicals are sustainable and environmental friendly alternatives to many petrochemical-based products used in engineering and machinery upkeep.

In a world searching for balance between progress and preservation, oleochemicals represent a path where innovation and responsibility meet.

For Norman Ellard, palm oil stands at the heart of this balance. Its exceptional productivity and versatility make it a resource that supports millions of livelihoods while driving sustainable manufacturing.

As industries evolve, Malaysian palm oil oleochemicals are redefining what it means to grow responsibly. They symbolise a new generation of solutions — products that not only perform but also protect.

Palm oil’s inherent advantage in oleochemicals

According to Ellard, palm oil and palm kernel oil continue to outperform other feedstocks in oleochemical applications, especially as 12–14 carbon mid-cuts and light-cut fractions experience global demand surges.

“These cuts are booming. They’re essential for personal care, detergents, specialty chemicals, everything from shampoos to high-performance surfactants,” he explains.

Palm kernel derivatives, he adds, remain among the most competitive raw materials globally. Malaysia’s track record: “Look at the facts”

Ellard is unequivocal about Malaysia’s sustainability commitments.

“Look at the facts, Malaysia has lived up to its promise of preserving the forest. The data is there.”

As of October 2025, Malaysia reportedly maintains 54% of its forest cover living up to its pledge to conserve 50 percent of its tropical forest, striking a balance between economic prowess and environmental protection, while promoting sustainable agricommodities such as palm oil.

He highlights that small but vocal lobbying groups often target isolated issues, creating disproportionate public anxiety.

“These groups latch onto one angle and amplify it. Sometimes it’s even specific ethnic-based activist clusters causing disruption for consumer-facing companies,” he notes.

In contrast, Ellard praises Malaysia’s regulators: “MPOB has taken a very positive, science-based role in addressing concerns and presenting verified evidence.”

A growth industry and a cost-competitive one

Beyond perception battles, the fundamentals remain strong. Ellard underscores that the oleochemical sector continues to have some of the lowest production and logistics costs worldwide, supporting long-term competitiveness.

“This industry will grow because the world is becoming more affluent. Consumers everywhere need more personal care, more hygiene products, more green chemistry solutions. Oleochemicals meet all those needs,” he says.

Headwinds: tariffs and Western stagnation

However, he cautions that geopolitical tensions are not without consequence.

The global tariff war has pushed up consumer prices, and Ellard observes a persistent “static reception” from certain Western markets toward the rapid rise of palm-based industries in the East.

“There’s still hesitation and legacy bias in some Western segments. But markets evolve—and the data consistently favours palm-derived oleochemicals,” he concludes.

*Norman Ellard is Global Director of Oleochemical Development and Innovation, ICOF America Oleochemicals Inc., USA.*