Driven by growing consumer scrutiny and sustainability pledges, some of the world’s biggest beauty and personal care brands have been working to scrub the industry’s image clean of its ties to deforestation and unsustainable sourcing – by turning to certified sustainable palm oil.
Multinationals like L’Oréal, Estée Lauder and Procter & Gamble have publicly committed to sourcing 100 per cent of their palm oil from sustainable sources, most commonly certified through the Roundtable on Sustainable Palm Oil (RSPO). These pledges also reflect rising pressure from investors and civil society for more ethical and environmentally responsible supply chains, particularly in sectors that use large volumes of palm oil derivatives.
RSPO’s latest impact update shows that demand from consumer goods manufacturers – particularly in beauty and hygiene categories – are among the fastest-growing segments of its global membership base.
The trend has been mirrored in China, with the personal care and cosmetics sector becoming one of the newest and fastest growing demand drivers for the use of sustainable palm oil and palm oil derivatives. This is playing out against the backdrop of a “clean beauty” movement gaining traction among Chinese consumers, who are increasingly demanding transparency, natural ingredients and ethical sourcing.
Local and international brands alike are responding by aligning with certifications like RSPO to strengthen their sustainability credentials and build consumer trust.
In an interview with Eco-Business on the sidelines of the recent RSPO China Forum in Guilin, Guangxi, Dr Inke van der Sluijs, director of market transformation at RSPO, said the cosmetics and personal care sector in China has shown strong interest in responsible sourcing, particularly when it comes to sustainable palm oil derivatives used in their formulations.
“We can see that the market is growing, and we are starting to drill down into which sectors are really driving certified sustainable palm oil use,” she said.
Dr van der Sluijs noted that while Europe remains RSPO’s most mature market as it already sources 90 per cent RSPO-certified palm oil to meet legislation coming out of the European Commission, future growth hinges on larger consumption markets.
“Where we need to see growth is in emerging markets like China, India and Indonesia. We really want to see change in these markets because of the potentially large volumes and their large populations,” she said.
Dr Inke van der Sluijs speaking at RSPO China Forum in Guilin about the importance of China’s vibrant and fast-evolving market in the global sustainable palm oil landscape. Image: RSPO
China, now the world’s second-largest importer of palm oil, is beginning to show signs of that change. “Data that we just received from our monitoring and evaluation team showed nearly 10 per cent of palm oil use in China was certified sustainable. It is much higher than we expected,” Dr van der Sluijs shared, calling it a promising indicator of market appetite.
At the forum, which celebrates RSPO’s 10 years of presence and engagement within China, the palm oil trade certifier shared that RSPO-certified sustainable palm oil consumption in China has risen to 11.7 per cent or about 550,000 tonnes annually, compared to an uptake that previously hovered at about 8 to 9 per cent.
As of May 2025, RSPO had 480 member companies in China. Addressing the nearly 130 industry leaders and subject experts gathered at the Guilin forum, Dr van der Sluijs spoke about the importance of China’s vibrant and fast-evolving market in the global sustainable palm oil landscape.
“China’s growing influence is crucial in shaping global sustainability and promoting responsible sourcing practices,” she said. “Its commitment is increasingly contributing in driving international markets towards sustainable solutions.”
The recent growth in certified sustainable palm oil consumption, she said, underscores China’s instrumental role in promoting sustainable production and consumption, and reflects how industry leadership and collective commitment can sustain such substantial momentum.
Dr van der Sluijs also pointed to the global significance of this shift, noting that RSPO’s international membership has now surpassed 6,100 members.
In the interview with Eco-Business, Dr van der Sluijs noted the relatively low consumer awareness about palm oil sustainability in China, although she has observed that policy direction, an important driver, is changing the landscape.
“Increasing momentum in environmental, social and governance (ESG) implementation from Chinese companies, due to top-down policy direction, is making it interesting. It’s a strong driver for responsible sourcing.”
Her work involves engaging multinational companies with operations in China to encourage alignment with RSPO goals. Increasingly, homegrown beauty brands have also emerged as “frontrunners” or “champion brands” for RSPO, as they become RSPO members and adopt practices that are examples for others in the industry, said Dr van der Sluijs.
Willingness to pay premiums
One example is China’s largest beauty group Proya Cosmetics, a recent RSPO member, that has begun tracing palm oil derivative supply chains more rigorously, and importing products via e‑commerce platforms that emphasise “clean,” “vegan,” or “RSPO-certified” labels.
Listed on the Shanghai Stock Exchange, Proya joined RSPO in April 2023 and has actively restructured its supplier network, prioritising partnerships with large RSPO-certified suppliers that demonstrate strong ESG management practices. According to the company, it aims to ensure that by 2025, more than 70 per cent of all palm-derived ingredients it uses will be RSPO-certified.
“Palm oil and its derivatives are widely used in the cosmetics industry for their moisturising, foaming, and texture-enhancing properties,” the company noted. “But due to the industry’s links with deforestation and biodiversity loss, we are committed to sourcing these ingredients in a responsible way.”
While Proya does not use crude palm oil directly, it has embedded sustainability into its raw material procurement strategy and actively engages suppliers to reduce environmental and social impacts throughout the supply chain.
The RSPO China Forum also highlighted Ming Fai International Holdings, an RSPO member since 2014, as another case of a Chinese company championing sustainable palm oil use in the personal care sector. Best known for supplying hospitality and hotel amenities, Ming Fai has integrated RSPO-certified ingredients into many of its product lines and has proactively promoted sustainable palm oil to international hotel groups, many of which have already begun incorporating certified palm into its products.
Lynn Lin (right), R&D director at Ming Fai Industrial (Shenzhen) Co. Ltd, said there are still regulatory constraints that limit how beauty and personal care brands can communicate the value of sustainability. Pictured left is Zhu Chunxian, director, quality assurance, Shanghai Ezaki Glico Foods. Image: RSPO
In its 2024 ESG report, Ming Fai reaffirmed its goal to “offer materials with RSPO certification” in its soap products, advocating for responsible land development, vegetation protection, and the rights of landowners and plantation workers. As a member of the China Sustainable Palm Oil Alliance (CSPOA), the company collaborates with upstream ingredient suppliers to develop new RSPO-certified materials tailored for the cosmetics industry.
Speaking with Eco-Business, Lynn Lin, R&D director at Ming Fai Industrial (Shenzhen) Co. Ltd., also noted the current gaps in awareness of sustainable palm oil among domestic consumers. “Compared to international consumers, Chinese consumers still have limited exposure to information about RSPO,” she said.
Lin also noted that there are still regulatory constraints that limit how beauty and personal care brands can communicate the value of sustainability. For example, in China, beauty products are not yet able to display the RSPO certification logo on their packaging due to cosmetic labelling regulations. “Cost also remains a significant consideration for many local brands,” she said. “And if there is no promotional edge, brands can’t highlight sustainability as their selling point. They will then have to weigh the considerations.”
But Dr van der Sluijs, in the interview, said the cosmetics and personal care sector is still promising for RSPO because consumers generally find the premium for a sustainable ingredient relatively easier to bear, as compared to other sectors. “They are more willing to pay a premium for sustainability.”
She added that the cosmetics industry has proven to be one of the most engaged sectors within RSPO’s membership in China, a sign that momentum around responsible sourcing may continue to grow, particularly as awareness and policy support increase. Local brands such as Proya are also scaling – the listed company’s revenue surpassed 10 billion yuan (US$1.4 billion) in 2024 – which could have large ripple effects for RSPO as they also champion sustainability.
As it expands its engagement in China, Dr van der Sluijs said that RSPO will have to dive deeper to understand what motivates companies in the country to adopt sustainable sourcing practices.
“I ask a lot of questions because I am very curious as to why they take sustainability measures. Is it because of investor pressure? Or a broader sustainability programme that they have committed to?” she said.
For RSPO, China is a market with significant transformative potential, said Dr van der Sluijs. “Once China sets its standard, things will happen and they will happen quickly. What happened with pollution control and the expansion of electrical vehicles is possible in the palm sector as well, especially if there is policy clarity.”
The European Union Deforestation Regulation (EUDR), which mandates deforestation-free products in supply chains entering the EU, will create a level playing field for European businesses. If China were to adopt similar legislation, van der Sluijs believes RSPO could be a valuable platform for alignment as companies are increasingly familiar with it and “the system works well”.
“I hope it will happen, because with legislation, there would be implementation,” she added.
To further support businesses in their transition, RSPO conducted practical training sessions on traceability and ESG reporting during the Guilin forum. Van der Sluijs pointed out that digital tools and applications are playing an increasingly critical role in helping companies improve sustainability reporting.
RSPO’s annual Roundtable Conference (RT) will be held at the Shangri-La Kuala Lumpur, Malaysia, from 3-5 November 2025. Get more details here.
