Palm-Free Lipids Move Towards Scale: Carbon, Yeast and Whey Routes at Different Stages
Four ingredient developments show palm-free and petrochemical-free routes progressing at different speeds. Savor, ÄIO, a Milcobel and NoPalm Ingredients partnership, and Inolex each describe a different feedstock and a different stage of development.
Savor, a carbon-based fat startup known for food, has opened a Personal Care and Beauty division. The company says it designs lipids directly from carbon, without crops, plantations or animal sources, and claims emissions more than 90% lower than traditional tropical oils. It uses proprietary thermochemical processes and feedstocks such as captured CO₂, green hydrogen and methane. Its platform includes alternatives to caprylic/capric triglyceride, vegan tallow, skin-mimetic lipids and a petrolatum alternative.
Savor launched commercial food production in 2025 and reports early traction with beauty contract manufacturers. It is advancing INCI submissions and scaling its output for the cosmetics industry.
Fermentation routes
ÄIO has announced production of its first tonne of yeast-derived oil, made from agricultural and wood industry side streams. The oil is designed to replace palm oil, coconut oil and petroleum-based mineral oils. The company is advancing plans for a commercial plant with an annual capacity of 2,000 tonnes and has distributed samples to manufacturers for testing.
Milcobel and NoPalm Ingredients are upcycling whey permeate, a byproduct of cheese production, into oils and fats using NoPalm's fermentation technology. According to the companies, industrial trials confirmed whey permeate as a viable feedstock and consistently produced high-quality oils at scale. The partnership aims to launch a demonstration facility and to look at co-location at existing dairy production sites.
A quat replacement without palm
Inolex's ProCondition 22 (INCI: Brassicamidopropyl Dimethylamine) addresses a different category. It is designed to replace quats such as BTAC and CTAC in hair and skin care. The company says it is made without palm, carries 83% USDA Certified Biobased Content and delivers wet combability comparable to BTAC in natural conditioning formulas.
InsightAce Analytic projects the bio-based cosmetics and personal care ingredients market will grow from US $5.29 billion in 2025 to $9.10 billion by 2035, at a CAGR of 5.5%.
Different stages, different decisions
The four announcements should not be read as equivalent. ÄIO has tonne-scale output and a planned 2,000-tonne plant. Milcobel and NoPalm have industrial trials and an intended demonstration facility. Savor has commercial food production and is still advancing INCI submissions for beauty. Inolex describes a product with stated performance data. Scale language matters here: a sample programme or a planned plant is not commercial supply.
For formulators, the near-term question is testing capacity rather than switching. Samples at ÄIO and pending INCI submissions at Savor suggest that evaluation work may come before any specification change. Where a supplier claims a drop-in, formulators may want comparative data against the incumbent oil or ester in their own systems. The ProCondition 22 combability claim is framed against BTAC in natural conditioning formulas, so its transfer to other bases remains to be shown.
For procurement leads, the feedstocks differ in their exposure. Side streams, whey permeate and captured CO₂ sit outside crop supply, which is the point the companies stress. Whether that translates into price stability or volume security will depend on plants that have not yet been built. The emissions figure from Savor is a company claim, and buyers seeking to use it in disclosure would need supporting evidence.
For suppliers and investors, the pattern is a gap between proven chemistry and funded capacity. Each route still has to move from trial, pilot or tonne scale to a commercial plant. It will be worth watching whether ÄIO's plant and the Milcobel and NoPalm demonstration facility reach construction, and whether co-location at dairy sites proves workable. The market projection supports demand, but it does not show which of these routes will capture it.