Podcast 311: The palm oil alternative that doesn’t rely on trees

Palm oil is everywhere in cosmetics – not just in creams and balms, but buried deep inside emulsifiers, surfactants, fatty alcohols, and the many other functional ingredients that help our cosmetic products perform as they should.

In fact, around 70% of cosmetic products worldwide contain at least one palm-derived raw material. And even though the beauty industry uses only a relatively small portion of the roughly 75 million tonnes of palm oil produced each year globally, it remains deeply reliant on it because it’s cheap, versatile, and structurally brilliant for formulation.

But that reliance raises some difficult questions. Palm oil production is closely tied to land use, monocultures and global supply chains that are increasingly vulnerable to climate instability and geopolitical pressures.

We often talk about sustainable palm oil or responsible sourcing, yet we rarely pause to ask a much more radical question: what if palm oil didn’t need to come from trees at all? That is exactly what we discuss in this episode of Green Beauty Conversations.

In this episode, Formula Botanica CEO Lorraine Dallmeier is joined by Nemailla Bonturi, co-founder and CEO of ÄIO, an Estonian biotechnology company pioneering the next generation of fermentation-derived oils for cosmetics and personal care.

Nemailla explains how fermentation technology can create oils with similar structures to palm oil and tropical butters – without relying on trees or large areas of agricultural land.

This episode will challenge the way you think about ingredient sourcing. From bright red antioxidant-rich oils to solid lipid complexes designed to replace tropical butters, the possibilities are both fascinating and disruptive.

If you care about the future of palm oil, sustainable formulation, or the next generation of cosmetic ingredients, this conversation is one you won’t want to miss!

“If we produced the oils the world needs using fermentation, we could dramatically reduce the land required for oil production.” — Nemailla Bonturi

In this episode with Nemailla Bonturi, you will hear:

• The science behind fermentation-derived oils: Nemailla explains how a specialised yeast strain can convert sugars and other carbon sources into oils through fermentation. Unlike traditional plant oils, which are extracted from seeds, fruits or nuts, these microbial oils are produced inside fermentation tanks. This allows scientists to control and tailor the fatty acid profile, so the resulting oils can mimic the composition of palm oil or tropical butters used in cosmetics.
• Why palm oil alternatives matter for the beauty industry: Palm oil is widely used in cosmetics because it is cheap, versatile and structurally ideal for formulation. However, the industry’s heavy reliance on palm-derived materials ties beauty to global land use, monocultures and complex supply chains. Finding alternatives to palm oil could help future-proof the cosmetics industry and reduce its environmental footprint.
• Turning waste streams into high-value cosmetic ingredients: ÄIO’s process can use a variety of feedstocks to nourish its yeast – including molasses and other sugar-rich side streams. The aim is to work within a circular economy model by transforming existing industrial residues into valuable cosmetic oils.
• The oil that could replace palm oil for good: One of ÄIO’s most striking ingredients is its naturally red oil, coloured by carotenoids produced by the yeast during fermentation. These pigments include beta-carotene and other red carotenoids that contribute powerful antioxidant properties.
• New ingredient formats for formulators: The company has also developed several ingredient formats, including liquid oils, solid lipid complexes and powdered encapsulated oils. Each format addresses different formulation challenges – from replacing tropical butters to providing exfoliating or hair-care-friendly powdered ingredients.

Key takeaways include:

• Fermentation could dramatically reduce land use for oil production: Producing oils through microbial fermentation has the potential to drastically reduce land requirements compared with conventional agriculture. Nemailla explains that meeting global demand for oils traditionally requires vast areas of land. In contrast, fermentation systems could produce the same quantities using dramatically smaller physical footprints.
• Microbial oils can mimic traditional cosmetic ingredients like palm oil: By adjusting fermentation parameters, scientists can tailor the composition of microbial oils to resemble palm oil or tropical butters used in cosmetics. These lipids can behave similarly in formulations, including melting on contact with skin and integrating well into emulsions. In some cases, they may even offer improved functionality or performance compared with conventional plant-derived alternatives.
• Fermentation offers supply chain resilience: Traditional vegetable oils rely on agricultural cycles, climate conditions and geopolitics, which can cause supply fluctuations. Fermentation technology operates in controlled environments, meaning production can continue regardless of seasonal changes. This approach could create more stable ingredient supply chains for cosmetic manufacturers while also reducing dependence on specific geographic growing regions.
• Sustainability depends on how ingredients are produced: An ingredient’s sustainability profile isn’t just about the material itself but also about the production system behind it. Fermentation can use less water than agriculture and operate on a much smaller land footprint. When combined with local feedstocks and circular economy principles, it offers an alternative model for producing cosmetic oils with reduced environmental pressure.

Meet our guest: Nemailla Bonturi, co-founder and CEO of ÄIO

Nemailla Bonturi is the co-founder and CEO of ÄIO, the Estonian biotech company creating the next generation of fermentation‑derived oils and ingredients for cosmetics and personal care.

Nemailla is particularly passionate about reshaping how the industry sources lipids and speciality oils, advocating for ingredients that are not only effective but also responsibly produced.

ÄIO is on a mission to transform how fats and oils are produced and used globally by replacing unsustainable traditional sources like palm oil, coconut oil, and animal fats with healthier, microbial alternatives.

The company’s collaborations span from early‑stage beauty startups exploring greener formulations to established brands looking to future‑proof their ingredient portfolios.

Find out more about Nemailla & ÄIO:

• Website: ÄIO Bio
• LinkedIn: Nemailla Bonturi

Special offer for listeners: ÄIO is currently offering small samples of their ingredients to formulators who would like to test them in their formulations in return for honest feedback. Head on over to ÄIO’s website to get in touch and find out more! 

Related episodes:

• Episode 189: Biotech ingredient wars revolutionising cosmetics
• Episode 131: Synthetic biology and sourdough starter cosmetics

Thank you for joining us for this episode of the Formula Botanica Green Beauty Conversations podcast. If you enjoyed listening, please share, subscribe and review this episode on Apple Podcasts, Spotify or Youtube so that more people can enjoy the show. Don’t forget to follow and connect with us on Facebook and Instagram.

Lorraine Dallmeier

Lorraine Dallmeier is a Biologist, Chartered Environmentalist and the CEO of Formula Botanica, the award-winning online organic cosmetic science school. Read more about Lorraine and the Formula Botanica Team.