NoPalm Ingredients study finds consumers favor yeast oil over palm oil in Europe

A new study commissioned by NoPalm Ingredients suggests that European consumers are ready to embrace yeast oil as a sustainable alternative to palm oil, signaling a significant breakthrough for the future of fermentation-derived fats in mainstream food products.

Conducted across the Netherlands, Germany, and France, the independent consumer acceptance study surveyed 1,350 participants and found that yeast oil was notably more liked than palm oil in Germany and France, particularly when used as an ingredient in margarine. The research indicated that yeast oil was perceived as both healthier and more environmentally friendly, and met key benchmarks for product appeal and purchase intent – critical factors for brands considering reformulation.

“This is an important milestone for both NoPalm Ingredients and the alternative fats industry,” commented Julie Cortal, Head of Business Development at NoPalm Ingredients. “For the first time, we have robust, independent data showing that brands can switch to yeast oil without losing consumer acceptance or purchase intent. That unlocks a critical path to market entry and scalable adoption for an entirely new category of sustainable oils.”

Margarine was selected as the test product for the study because of its high oil content and widespread daily use in households, providing a relevant indicator for broader market applications. Respondents evaluated the appeal and purchase intent of margarine containing yeast oil, as well as their reactions to different ingredient labeling formats.

One of the study’s most significant insights was how consumers reacted to yeast oil on ingredient lists. All tested back-of-pack labeling options met the action standard for product appeal and purchase intention, performing at least as well as current labeling for traditional margarine. When shown labels mentioning yeast oil, German and French consumers responded even more favorably than when yeast was omitted, suggesting that clarity and transparency around the ingredient could be a commercial advantage rather than a liability.

Leoniek Robroch, Regulatory Affairs Manager at NoPalm Ingredients, said clear labeling is crucial for both commercial success and regulatory compliance. “Clear consumer labeling is not only a commercial advantage, but also a regulatory requirement,” Robroch said. “Our data shows that ‘yeast oil’ is both well-understood and accepted by consumers. It has potential to be recognized as a customary name under EU regulations, an important step toward compliant and scalable market access.”

While overall awareness of yeast oil remains relatively low, hovering between 10-20% across the surveyed countries, the study revealed that this did not negatively affect acceptance. In fact, once consumers learned about the benefits of yeast oil, their preference for it over palm oil rose significantly.

This finding is particularly significant as food producers increasingly look to reformulate products in response to environmental concerns and shifting consumer preferences. Palm oil, while a widely used ingredient, has been the subject of growing scrutiny due to its links to deforestation and biodiversity loss. Yeast oil, produced via fermentation, offers a potential alternative that requires far less land and water and has a lower carbon footprint.

Despite the progress in developing fermentation-based oils, industry experts have long pointed out that lack of consumer acceptance data remains one of the main hurdles preventing large-scale commercial adoption. NoPalm Ingredients’ study helps fill that gap, offering rare early-stage validation for yeast oil’s market potential and providing a de-risked pathway for food brands considering reformulation.

For investors, the findings provide further evidence supporting NoPalm Ingredients’ commercial strategy and the broader momentum behind sustainable fats and oils. The company sees opportunities for yeast oil not only in margarine but in a wide range of food applications where traditional oils and fats play a central role.

“Our goal is to help food brands reformulate without compromising on taste, texture, or consumer trust,” Cortal said. “This study confirms that yeast oil offers a compelling path forward.”

As the food industry seeks more sustainable solutions, NoPalm Ingredients plans to continue working with partners across the value chain, aiming to bring yeast oil from the lab into everyday grocery baskets.