Palm oil is produced from the fruit of the oil palm (Elaeis guineensis). They grow naturally in tropical rainforest areas, but they also are being planted and farmed especially to produce more palm oil. Palm oil has many useful properties. It is semi-solid at room temperature and so does not need to be chemically hardened. It is also neutral in taste and very stable when heated; it has a long shelf life and makes foods particularly spreadable. On account of these properties, palm oil is used in products as diverse as margarine, convenience foods, baked goods, and confectionery, as well as in the manufacture of candles, cosmetics, soaps, and detergents. Because of these unique natural characteristics, it is very difficult to find substitutes for palm oil. Nigeria is a large producer of palm oil, and it is recognized in the global market.

1. Palm Kernel Oil: Palm Kernel Oil can be extracted from the kernels of the oil palm fruits. It belongs to the lauric oils like coconut oil, i.e. it contains a high amount of lauric acid, a saturated fatty acid. That’s why it is solid at room temperature. The raw oil is yellowish-brown after refining one obtains a nearly white-yellowish fat. Palm kernel oil is solid at room temperature, but at body temperature, it is melting rapidly and leaves a pleasant cooling effect. That’s why it is common in cocoa glazes, ice confection, ice cream coatings, and cool-melting confectionery fillings. Palm kernel oil is also used as a solid component in margarine production.
2. Fractionated Palm Oil: Fractionated palm oil contains a higher percentage of saturated fat than normal palm oil. Due to processing methods, fractionated palm oil may contain varying levels of saturated fat. 
3. White Palm Oil: White palm oil is derived as a result of processing and refining. When refined, the palm oil loses its deep red colour. It is extensively used in food manufacture and can be found in a variety of processed foods including peanut butter and chips.