Oleochemicals are chemical compounds derived from animal and vegetable oils.

All oils and fats are composed of triglycerides. Triglycerides are three long carbon chains connected in series by one glycerol molecule. The type and length of the carbon chain determine its viscosity (density) and high temperature resistance.

Oleochemicals are chemical reactions that change the chain structure of triglycerides, thereby unlocking more potential uses, such as in adhesives and cleaning products. They may come from a variety of vegetable oils, from coconut oil to soybean oil, many of which have been questioned for their environmental and social sustainability. However, since palm oil is the cheapest and most productive, it is often used as the main raw material for oleochemical production.

The main raw materials used in the production of palm-based oleochemicals are refined palm oil and refined palm kernel oil, stearin and fatty acid distillates, which may undergo multiple conversions before reaching the desired end product.

According to data from Experts in Sustainable Forest & Agricultural Advice (Efeca), only 8% of global palm oil and 70% of palm kernel oil were used to produce oleochemicals in 2016. But the market for oleochemicals is certainly growing, with chemical companies such as Cargill and DuPont increasingly touting bio-based feedstocks as low-emission alternatives to fossil fuel-derived products.

The main preparation process of oleochemicals is hydrolysis (also known as cracking), that is, the use of high-pressure steam to decompose macromolecular triglycerides into mixed fatty acids with different carbon chain lengths. In addition, other reactions that change the chemical structure and physical properties of molecules are used, including "transesterification," which is the reaction of fatty acids with alcohols to form fatty acid methyl esters. As we will see, fatty acid methyl esters are used in the production of detergents and biodiesel.

The complex nature and numerous variations of these palm-based oleochemicals make it difficult for downstream users to trace back to the source of production and ensure sustainability.