Palm kernel oil is extracted from the kernels of the oil palm fruit (Elaeis guineensis), distinct from palm oil, which comes from the fleshy mesocarp. It is a light yellow to white oil rich in lauric acid, which gives it excellent stability, foaming, and emulsifying properties. Palm kernel oil is widely used in confectionery, bakery fats, non-dairy creamers, and margarine production.

In the non-food sector, it is a key ingredient in soaps, detergents, cosmetics, and oleochemicals. Its versatility also makes it a valuable feedstock for biodiesel and surfactants. After extraction, the palm kernel cake is used as a nutritious animal feed. Primary production is concentrated in Malaysia and Indonesia, which dominate the global palm oil industry. With rising demand for vegetable oils and renewable resources, palm kernel oil remains a vital product in both food and industrial markets.