If you’ve ever opened a jar of natural nut butter and found a layer of oil sitting on top, you might have wondered: Is this supposed to happen?

Usually, yes.

That separation is actually pretty normal when a spread is made without palm oil or other stabilizers. The naturally occurring oils in nuts and seeds can move around a little over time. 

But why do some nut butters use palm oil in the first place? Is palm-oil-free actually healthier? And what should you look for when choosing a jar?

Let’s dig in.

Why Is Palm Oil Used in Nut Butter?

Palm oil can act as a stabilizer, helping the oils and solids in nut butter remain more evenly distributed.

Food scientists have specifically studied palm oil for this purpose. Research published in the Journal of Food Processing and Preservation found that palm oil has potential as an effective stabilizer in peanut butter, where natural oil separation can otherwise occur during storage.

Nut butters made without palm oil or other stabilizers behave a little differently. When nuts and seeds are ground, their naturally occurring oils are released and may gradually rise to the top of the jar.

That separation is normal. A thorough stir usually brings everything back together.

Is Palm-Oil-Free Nut Butter Healthier?

The short answer: not automatically.

“Palm-oil-free” tells you one thing about a product. It doesn’t tell you everything about what’s inside the jar.

Palm oil is relatively high in saturated fat. The American Heart Association notes that diets high in saturated fat can raise LDL (“bad”) cholesterol and recommends replacing sources of saturated fat with foods that provide more monounsaturated and polyunsaturated fats. Nuts and seeds happen to be natural sources of those unsaturated fats.

Still, that doesn’t make every palm-oil-free spread a nutritional superstar — or every product containing palm oil a nutritional no-go.

Turn the jar around and look at the full picture: ingredients, added sugars and oils, saturated fat, sodium, protein and fiber.

Palm-oil-free can be part of the equation. It just isn’t the whole equation.

What About Palm Oil and Sustainability?

Palm oil also has a complicated environmental footprint.

Expansion of oil palm plantations into natural areas has contributed to deforestation and biodiversity loss in some tropical regions. But simply replacing palm oil with another vegetable oil isn’t necessarily a solution.

The International Union for Conservation of Nature notes that oil palm produces more oil per unit of land than other major oil crops. Because many alternatives produce less oil per acre, replacing palm oil could require more land — potentially shifting the environmental impact somewhere else. The organization instead emphasizes reducing deforestation and improving the sustainability of palm oil production.

So, as with nutrition, it’s not quite as simple as judging a product by one ingredient. How ingredients are sourced and produced matters too.

How to Choose a Palm-Oil-Free Nut Butter

If avoiding palm oil is important to you, start with the ingredient list rather than relying only on claims on the front of the package.

Beyond palm oil, consider:

• What nuts and seeds are actually in it? A single-nut butter and a multi-nut-and-seed blend can offer very different flavors and nutritional profiles.
• Are sugars or oils added? Check whether those additions fit what you’re looking for.
• What does the Nutrition Facts panel say? Protein, fiber, saturated fat, sodium and added sugar can vary considerably between products.
• Does the texture look different from conventional nut butter? Some separation can be expected in products made without stabilizers.

NuttZo takes the palm-oil-free approach across its nut butter line, allowing the naturally occurring oils from its nuts and seeds to remain part of the spread rather than adding palm oil to stabilize it.

FAQs About Palm-Oil-Free Nut Butter

Does “natural” nut butter mean palm-oil-free?

Not necessarily. Rather than relying on the word “natural,” check the ingredient list to determine whether palm oil or another added oil is present.

Is palm oil the same as hydrogenated oil?

No. Palm oil is a type of vegetable oil. Hydrogenation is a processing method used to change the physical properties of an oil. They are not interchangeable terms.

Does NuttZo use palm oil?

No. NuttZo states that it does not use palm oil in its nut butters, which is also why natural oil separation can occur.

The Bottom Line

Palm oil is sometimes added to nut butter to help prevent natural oil separation and create a more consistent texture. Nut butter doesn’t need it, though—and products made without stabilizers may simply require an occasional stir.

If palm-oil-free matters to you, use it as one part of your decision, alongside the complete ingredient list and nutrition profile.

For NuttZo, skipping palm oil means letting the nuts and seeds—and the oils naturally found in them—do their thing.