As concerns about opaque supply chains and unethically harvested cosmetics ingredients grow, consumers are increasingly calling for sustainable, environmentally-friendly products which cause minimal damage to local ecosystems and communities.
With the EU’s upcoming Deforestation Regulation coming into effect this December, companies importing non-compliant products linked to deforestation could be fined up to 4 per cent of their global turnover. It has prompted some to explore alternative options.
This has led to the rise of companies like SMEY, a Paris-based biotech firm, which is producing the world’s first lab-grown cocoa buter, palm and shea oils, with artificial intelligence (AI). They are hoping to provide beauty and food manufacturers with deforestation-free, sustainable oils.
Natural harvesting can cause deforestation and ecosystem damage
Traditional harvesting methods for widely used ingredients like cocoa butter, palm oil and shea oil can lead to significant biodiversity loss, habitat destruction, negative social impacts and accelerate climate change.
Palm oil plantations, especially, cause considerable deforestation as they replace large areas of tropical rainforest in places like Indonesia and Malaysia. This can also threaten species such as tigers, elephants, orangutans and rhinos.
A large amount of fertiliser and water is also needed for palm oil production, which contributes to soil erosion and water pollution. Forced and child labour are other concerns, as well as displaced local communities due to land disputes revolving around palm oil plantations.
Similarly, cocoa butter harvesting can lead to biodiversity loss through widespread deforestation, to create space for cocoa farms. Soil degradation from unsustainable farming practices is also common.
Deforestation releases vast amounts of carbon dioxide into the atmosphere, which can contribute to climate change. Harmful pollutants are also released when forests are burned to clear land.
While shea oil harvesting has less direct impact on the environment, processing shea nuts into butter requires large amounts of wood for fuel. Cutting too much wood to fuel this processing can cause biodiversity decline, habitat loss and land degradation, especially in areas with fewer forest resources.
Certain shea processing sites can also generate vast amounts of waste, such as wastewater and shea cake, which can harm the environment if not managed and disposed of properly.
Artificial oil companies like SMEY could help solve a number of these environmental and supply chain issues.
“Lab-produced oils are a promising step toward sustainability, especially for high-impact ingredients like palm or rare plant oils,” Marc Mazodier, Professor of Marketing at ESSEC Business School, tells Euronews Green in an email.
“They can reduce environmental impact, with less deforestation and land use, a lower carbon footprint if powered by renewable energy, improved production precision and efficiency.”
“They don’t use pesticides or fertilisers and pose no threat to the ecosystem. These oils avoid labour issues associated with traditional oil harvesting in some regions. They can be vegan and cruelty-free,” Mazodier adds.
How SMEY is making lab-grown oils
SMEY uses AI and a library of more than 1,000 yeast strains, known as the Neobank of Yeasts (NOY), to make traceable cocoa butter, shea and palm oils in only 30 days.
This is significantly quicker than the industry’s usual two-year cycle for natural oils and harvesting methods. NOY is the world’s first digital database of its kind.
“Our approach combines fermentation and machine learning into a single, integrated system. We work with non-GMO yeast strains sourced from nature, using fermentation technology to produce oils with precise lipid profiles for specific client needs,” SMEY’s founder Viktor Sartakov-Korzhov tells Euronews Green.
This process is powered by NOY, in which each yeast strain is mapped for its natural lipid profile. SMEY.AI then analyses metabolic, genomic and fermentation data to predict which strains will yield the needed fatty acid composition, stability and texture of oil.
“From there, we apply adaptive laboratory evolution and process optimisation to scale production without genetic modification,” Sartakov-Korzhov explains.
“This combination shortens the R&D (research and development) cycle from 18-24 months to about 30 days for strain shortlisting, allowing us to develop oils that are consistent, traceable, and tailored to each application.”
The company says this allows them to create entirely new oils, as well as replace traditional oils such as cocoa butter.
How can artificial oils make cosmetic supply chains more sustainable?
Lab-grown oils could change the production and competition landscape in Europe, according to Sartakov-Korzhov.
“Our goal is to add value and to strengthen resilience without displacing existing players. In cosmetics and pharmaceuticals, this means enabling the local production of oils that previously had to be imported. A particular example can be making a cosmetic-grade camellia oil used by luxury beauty brands in Europe instead of sourcing it only from Asia,” he explains.
Producers can also create new ingredients and oils in labs with much better shelf lives, stability and performance than natural oils.
“At the same time, we reduce dependency on GMO-derived oils, which sets us apart from most competitors. By offering high-purity oils from non-GMO sources that can be produced locally, we also make supply chains less vulnerable to geopolitical or economic shocks,” Sartakov-Korzhov adds.
Professor Mazodier highlighted that lab-produced oils could also significantly improve supply chain resilience by supporting climate-proof production and inventory flexibility.
At present, SMEY is focusing on marketing its Noyl Silk product to haircare, skincare and makeup brands. Noyl Silk, previously named cHOB (Cultivated High Oleic Butter) is an artificial oil for cosmetics, developed through the NOY platform.
The company is also targeting the lubricants market and the oleochemicals industry. In the longer term, it will focus on the food sector, with products such as Noyl Cocoa, its cultivated cocoa butter alternative.
Currently, SMEY’s focus is on North America and Europe, where the majority of its potential clients are based. However, from there, the company plans to expand globally with regional production hubs worldwide.
SMEY plans to lease the NOY database to other fermentation-based companies by the end of October 2025. This will let them speed up their own strain discovery and optimisation.
Performance challenges and long regulatory approvals
Although lab-grown oils can be much more sustainable and quicker to reach the market, challenges still remain. A key hurdle is making sure that the performance, such as taste, feel, composition and behaviour, matches natural oils as closely as possible.
“Oils must deliver the same or better results than the ingredients they replace. Regulatory approval is another major factor, and timelines vary depending on the application and region,” says Sartakov-Korzhov.
“For example, cocoa butter alternatives for food use have an estimated approval path of around two and a half years in Europe, while palm oil replacements for products like chocolate spread could take about three years.”
Another challenge is scaling up production enough to match the cost competitiveness of traditional oil manufacturing.
“Some lab processes require significant energy, which may offset sustainability gains if not powered by renewables,” Mazodier says.
“Lab-produced oils are often more expensive than conventional oils, though costs are expected to drop as technology advances. Many consumers prefer plant-based or "natural" ingredients, even if lab-produced oils are scientifically identical or superior.”
He also points out that lab-grown oils usually need sugars or other carbon sources, often from industrial agriculture, like sugarcane or corn. If the supply of these crops is disrupted, there may be ripple effects for artificial oil companies.
Similarly, not all lab-grown oils are easily biodegradable.
“Brands must ensure their products break down safely to avoid contributing to pollution or microplastic issues. Even if the oil itself is sustainable, its packaging and transportation may still have environmental impacts if not managed responsibly,” Mazodier said.
With stricter regulations, like the EU’s Deforestation regulation, set to take effect, companies are increasingly exploring alternative sources. Lab-grown options like those developed by SMEY are being positioned as a promising fix to sustainability and ethical concerns.
But while the technology offers traceability and speed, it isn’t without limitations. Questions remain over scalability, affordability and whether lab-grown oils can really match up to the natural counterparts.
“Lab-grown oils could make cosmetic supply chains far less exposed to fragile agriculture by diversifying production, stabilising supply, and enabling substitution. But they introduce new dependencies- especially on feedstock sourcing, energy, and industrial infrastructure- which means they complement rather than fully replace agricultural oils in the near term,” Mazodier concluded.
