Palm oil is an edible vegetable oil derived from the mesocarp (reddish pulp) of the fruit of the oil palms. The oil is used in food manufacturing, in beauty products, and as biofuel. Palm oil accounted for about 33% of global oils produced from oil crops in 2014.

Palm oil is naturally reddish in color because of a high beta-carotene content. It is not to be confused with palm kernel oil derived from the kernel of the same fruit[9] or coconut oil derived from the kernel of the coconut palm (Cocos nucifera). The differences are in color (raw palm kernel oil lacks carotenoids and is not red), and in saturated fat content: palm mesocarp oil is 49% saturated, while palm kernel oil and coconut oil are 81% and 86% saturated fats, respectively.

However, crude red palm oil that has been refined, bleached and deodorized, a common commodity called RBD (refined, bleached, and deodorized) palm oil, does not contain carotenoids. Many industrial food applications of palm oil use fractionated components of palm oil (often listed as “modified palm oil”) whose saturation levels can reach 90% these “modified” palm oils can become highly saturated, but are not necessarily hydrogenated.

The oil palm produces bunches containing many fruits with the fleshy mesocarp enclosing a kernel that is covered by a very hard shell. The FAO considers palm oil (coming from the pulp) and palm kernels to be primary products. The oil extraction rate from a bunch varies from 17 to 27% for palm oil, and from 4 to 10% for palm kernels.
Along with coconut oil, palm oil is one of the few highly saturated vegetable fats and is semisolid at room temperature.