Researchers have developed lab grown oils such as cocoa butter, palm oil, and shea oil using AI-driven yeast fermentation. This breakthrough could curb deforestation, reduce reliance on industrial farming, and help meet strict EU sustainability regulations.
Paris-based SMEY is pioneering lab grown oils as sustainable alternatives, producing cocoa butter, palm oil, and shea oil in just 30 days with AI and yeast fermentation. The breakthrough offers deforestation-free cosmetics ingredients that help companies comply with EU regulations while reducing carbon emissions and stabilizing fragile global supply chains.
You might not think twice about the cocoa butter in chocolate, the palm oil in snacks, or the shea oil in lotions. But behind these everyday products lies one of the world’s biggest drivers of deforestation. Vast tropical forests in Southeast Asia, West Africa, and Latin America are being cleared to make room for these crops, putting species like orangutans, tigers, and elephants at massive risk — while also releasing millions of tons of carbon into the atmosphere.
Now, a Paris-based biotech company called SMEY believes it has found a better way. Using lab grown oils made with yeast fermentation and the help of artificial intelligence, the company can create cocoa butter, palm oil, and shea oil in a month, compared to the two years needed for traditional harvesting.
The timing couldn’t be more urgent. Starting in December 2025, the European Union will enforce strict new rules: any company importing products linked to deforestation could face fines of up to 4% of global revenue. Cosmetics, food, and chemical manufacturers now face a race to secure deforestation-free ingredients.
SMEY’s system draws on a unique resource: the Neobank of Yeasts (NOY), a digital database of more than 1,000 non-GMO yeast strains. Using fermentation technology, these yeasts are “trained” to produce oils that mimic — or even improve upon — the fatty acid composition, stability, and texture of natural oils.
An AI platform called SMEY.AI analyzes the yeast’s genomic and metabolic data to predict the best strain for each product. The result: research and development cycles shrink by nearly 96%, reducing years of trial and error to a single month. Oils can then be tailored to client needs — from silky shea alternatives for skincare to food-grade cocoa butter substitutes.
Traditional palm oil plantations in Indonesia and Malaysia replace tropical forests, leading to biodiversity collapse, soil erosion, and water pollution. Cocoa farming drives similar deforestation across West Africa. Even shea oil production contributes to habitat loss through heavy firewood use for processing. On top of the environmental cost, labour abuses — including child and forced labour — remain widespread issues in these industries.
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By contrast, lab grown oils created through biotech fermentation require no pesticides, little land, and can have minimal pollution if powered by renewable energy. They also avoid genetically modified inputs, differentiating SMEY’s work from some competitors. The result: traceable, consistent oils with a much smaller environmental footprint.
SMEY already sells Noyl Silk, a lab grown oil designed for cosmetics, and plans to release Noyl Cocoa as a cultivated cocoa butter alternative. It initially targets the beauty and oleochemicals markets in North America and Europe, with plans to develop regional hubs worldwide.
But scaling up is not that simple. Lab grown oils currently cost more than conventional ones due to smaller production scales, and consumer hesitation toward “unnaturally produced” oils remains another barrier. Additionally, regulatory approval can take years, particularly for food applications.
Other risks include reliance on agricultural feedstocks, such as sugarcane, for fermentation, and the need to ensure biodegradability to avoid new pollution issues. Still, the potential benefits are substantial.
Experts believe lab grown oils won’t completely replace agricultural oils in the near future — but they can diversify supply chains, reduce exposure to fragile farming systems, and stabilize costs. As Marc Mazodier of ESSEC Business School explains, these oils offer both environmental and economic resilience: “They make cosmetic supply chains less exposed to fragile agriculture by diversifying production, stabilizing supply, and enabling substitution.”
If successful, SMEY’s approach could help global brands meet looming regulations, reduce deforestation, and cut carbon emissions — all while producing oils in record time. In other words, artificial palm oil and cocoa butter might soon become key players in the fight against climate change.
