Palm oil and coconut oil are not the same. They come from different trees, are extracted from different parts of the fruit, have very different fat compositions, and behave differently in your body. The confusion is understandable because both are tropical oils high in saturated fat, and a third oil, palm kernel oil, blurs the line further by sharing traits with coconut oil despite coming from the same tree as palm oil.
They Come From Different Plants
Palm oil comes from the oil palm tree (Elaeis guineensis), specifically from the fleshy outer part of the fruit, called the mesocarp. Coconut oil comes from the coconut palm (Cocos nucifera) and is extracted from the dried inner meat of the coconut, known as copra. These are entirely separate species.
There is also palm kernel oil, which adds to the confusion. Palm kernel oil comes from the same tree as palm oil, but from the seed (kernel) inside the fruit rather than the outer flesh. Despite sharing a name with palm oil, palm kernel oil is actually much closer to coconut oil in its fat profile. So when you see “palm kernel oil” on an ingredient list, think of it as a cousin of coconut oil, not a twin of palm oil.
Fat Composition Is the Biggest Difference
This is where the two oils diverge sharply. Palm oil is about 50% saturated fat, with the rest split between monounsaturated and polyunsaturated fats. Coconut oil is over 85% saturated fat, making it one of the most saturated cooking fats available. Palm kernel oil is similarly high, also above 85% saturated.
Beyond the total amount of saturated fat, the type of saturated fat differs. Coconut oil is rich in medium-chain saturated fatty acids, particularly lauric acid. Your body processes medium-chain fats differently from long-chain ones: they’re absorbed more quickly and are more readily used for energy rather than stored. This is why coconut oil is often marketed alongside MCT (medium-chain triglyceride) supplements.
Palm oil, by contrast, is dominated by palmitic acid, a long-chain saturated fatty acid. Long-chain fats take a longer metabolic route through your body and have different effects on blood lipids and inflammation.
How Each Oil Affects Your Health
Both oils raise cholesterol, but they do so in different ways and to different degrees. Animal research comparing lauric acid (coconut oil’s main fat) with palmitic acid (palm oil’s main fat) has found that palmitic acid promotes greater insulin resistance and more liver injury than lauric acid under the same high-fat conditions. In one controlled study, mice fed high-fat diets enriched with palmitic acid developed significant insulin resistance, while those fed lauric acid did not, relative to controls. Markers of liver damage were also elevated only in the palmitic acid group.
That said, coconut oil is not a free pass. The lauric acid group in the same study still showed increased fat tissue inflammation and elevated liver triglycerides compared to a normal diet. The takeaway from the research is that while lauric acid caused less metabolic disruption than palmitic acid, both fats contributed to inflammation when consumed in excess.
For everyday use, the practical difference is that palm oil’s higher proportion of unsaturated fats gives it a somewhat more balanced fatty acid profile overall, while coconut oil’s medium-chain fats may be processed more efficiently by the body. Neither oil is a health food in large quantities, and both are best used in moderation alongside oils higher in unsaturated fats, like olive or avocado oil.
Micronutrients Set Them Apart Further
Unrefined red palm oil contains significant amounts of nutrients that coconut oil simply doesn’t have. Crude red palm oil provides 500 to 700 milligrams of carotenoids per kilogram, including 200 to 350 mg/kg of beta-carotene, a precursor to vitamin A. It also contains 200 to 400 mg/kg of tocotrienols, a form of vitamin E with antioxidant properties. These compounds give unrefined palm oil its distinctive reddish-orange color.
Most palm oil sold commercially, however, is refined and bleached, which strips out nearly all of these beneficial compounds along with the color. Refined palm oil is pale yellow and nutritionally much less interesting than its unrefined counterpart. Coconut oil doesn’t contain meaningful amounts of carotenoids or tocotrienols in either its refined or unrefined form.
Different Roles in the Kitchen and Food Industry
Palm oil is semi-solid at room temperature with a relatively high smoke point, making it popular for frying and as a structural fat in processed foods. It gives margarine, chocolate, instant noodles, and baked goods a smooth, stable texture without requiring hydrogenation (the process that creates trans fats). It is the most widely produced vegetable oil in the world, largely because oil palms yield far more oil per acre than almost any other crop.
Coconut oil is solid below about 76°F (24°C) and melts quickly, which makes it useful in raw desserts, energy bites, and as a butter substitute in vegan baking. Its distinct coconut flavor works well in curries, stir-fries, and tropical dishes, though refined versions have a more neutral taste. In the beauty industry, coconut oil is widely used as a moisturizer and hair treatment, a use that palm oil doesn’t share.
How to Tell Them Apart on Labels
On ingredient lists, you’ll see these as separate entries: “palm oil,” “palm kernel oil,” and “coconut oil.” Sometimes palm oil hides under names like “palmitate,” “palmate,” or “vegetable oil” (in regions where labeling laws are less specific). If a product simply says “vegetable oil” without specifying the source, it may contain palm oil, especially in shelf-stable snack foods and bakery items.
Coconut oil is almost always labeled clearly, in part because manufacturers want to capitalize on its popularity. If you’re trying to avoid one or the other for dietary or environmental reasons, checking the ingredient list rather than the front-of-package marketing is the most reliable approach.