03/07/2024 (Oils & Fats International) - Global consumer goods giant Unilever is reducing the palm oil content in its soaps in India by 25% as part of a wider strategy to offset volatility in commodity prices and reduce environmental impact, according to a report by the Economic Times.

Under its Indian subsidiary Hindustan Unilever (HUL), the fast-moving consumer goods company markets its Lux and Lifebuoy soap ranges in India.

Unilever took almost five years to develop its Stratos technology, which replaces palm oil with a mix of plant-derived polysaccharides, vitamin blends and natural fatty acids, the 13 June report said. The technology would also be introduced in other countries, the Economic Times wrote.

In a separate report, The Edge Malaysia wrote that the Asian Palm Oil Alliance (APOA) – a not-for-profit alliance of five Asian palm oil consuming countries of sustainable palm oil – had urged HUL to reconsider its decision to reduce the palm oil content in its soaps.

The move could impact millions of oil palm farmers worldwide, particularly smallholders, the APOA was quoted as saying in the 18 June report.

“While we acknowledge that palm oil prices are currently higher than before the COVID-19 pandemic, … palm oil prices are influenced by other edible oil prices, like soya and sunflower oil. To single out palm oil for unwarranted criticism appears a bit unfair,” the APOA said in a statement.

The alliance added that commodity prices were influenced by demand and supply factors and that palm oil was no different.

With a 38% share of India’s soap market, HUL is the country’s leading soap supplier.

“Since there is less palm oil used, that allows us a huge amount of savings, which we can use to reinvest in other ingredients,” HUL vice president, skin cleansing, Ankush Wadehra, was quoted as saying.

“A reduction in TFM (total fatty matter) certainly helps us in managing the inflation-deflation cycles of commodities.”

Palm oil and its derivatives accounted for over 20% of the input costs of consumer companies, including HUL, and were among the most volatile of their inputs, the Economic Times wrote.

In addition to laboratory tests and independent clinical studies by dermatologists, the new soap bar’s formulation had been tested with thousands of Indian consumers, the report said.

https://www.ofimagazine.com/news/hindustan-unilever-to-reduce-palm-oil-content-in-soaps-by-25