Palm oil is widely used in packaged foods, but is often misunderstood by consumers.
According to Inke Van Der Sluijs, Director, Market Transformation, Roundtable on Sustainable Palm Oil (RSPO), the biggest gap has been in differentiating between certified sustainable palm oil and conventional palm oil.
Certified sustainable palm oil is produced under strict criteria that address issues such as deforestation, biodiversity protection, labour rights, and community engagement, and it is verified through third-party audits and traceability systems.
However, this distinction is not always well understood by consumers. Independent public information organisations such as Milieu Centraal help consumers understand sustainability labels.
In 2025, RSPO retained its recognition as one of the 13 top sustainability labels identified in the Dutch market, as the certification provides assurance that palm oil has been produced and sourced in accordance with internationally recognised environmental and social standards.
Independent third-party certification also plays a key role in certification within a transparent system. Certification Bodies (CBs) that offer RSPO Certification services are accredited by Assurance Services International (ASI).
The CBs’ performance is evaluated and closely monitored by the accreditation body. This system of independent checks and balances has been developed to ensure the quality of the certification process remains fair and impartial and is in line with international standards for voluntary certification schemes such as ISEAL.
Van Der Sluijs added that as consumers have become more engaged with ingredient sourcing and ethical supply chains, retailers and manufacturers have placed greater emphasis on traceability and responsible sourcing.
Australia has 164 RSPO Members, of which 20 are Retailers and three Consumer Goods Manufacturers (CGM). Total palm oil imports in Australia were 70,000 MT according to USDA data. Of this, 92 percent was RSPO Certified.
New Zealand has 33 RSPO Members, of which two are Retailers, three are CGMs with sizable volumes (each >500 MT), and 24 are Supply Chain Associates with smaller volumes (each <500 MT).
In terms of market size, New Zealand has a small palm oil footprint (~25,000 MT of palm oil and palm oil products imported into NZ in 2025, according to USDA data).
Internal RSPO trade data estimates that about 11,000 MT of CSPO was traded into New Zealand by RSPO Members in 2025. This would indicate a certified uptake of about 45 percent, which, Van Der Sluijs mentioned, was positive and encouraging.
The primary challenge, she highlighted, was to drive further market demand for available Certified Sustainable Palm Oil (CSPO).
“The RSPO still faces a market gap in which certified supply outstrips demand, leaving not all sustainable production rewarded. Achieving 100 percent uptake is vital to making CSPO the global baseline,” she said.
Another key challenge was traceability. Palm kernel oil has a more complex supply chain than palm oil, particularly in sectors such as cosmetics, where palm oil-based derivatives are used as surfactants, glycerine and emulsifiers.
There are fewer crushing facilities producing (certified) palm kernel oil than there are palm oil mills. At the crushers, certified sustainable volumes are mixed with uncertified volumes to make up sufficient volumes.
Under the RSPO, this supply chain system is known as Mass Balance; however, in this model, physical palm oil cannot be traced back to a single plantation, but it ensures that an equivalent volume of certified sustainable palm oil is produced and accounted for in the supply chain.
RSPO Members transparently communicate about their progress on the RSPO website. The RSPO Label provides a quick and easy way for consumers to identify products made with RSPO Certified Sustainable Palm Oil (CSPO), helping to make informed purchasing decisions.
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