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Why Lay's Uses Different Oils in Different Countries

 17 January, 2025

Sources
  1. Business insider: Soybean Oil price
  2. Business insider: Palm Oil price

Quick Take:

In the USA: Soybean oil wins (local + subsidized)
In India: Palm oil wins (closer to Indonesia/Malaysia)

Lays India vs USA ingredients comparison

Global Oil Game

Same chips. Different oils. Why? Pure economics.

USA Market

Soybean oil dominates because:

  • Grown locally
  • Government subsidized
  • Zero import costs
Current soybean oil market prices: $0.99

Palm Oil Challenge

Getting palm oil to USA means:

  • Southeast Asia → Pacific shipping
  • Import duties
  • Extra handling
Current soybean oil market prices: $4.68

India: Reverse Economics

  • Next door to palm oil giants
  • Trade deals with Indonesia/Malaysia
  • Limited soybean farming

Bottom Line

Geography + Politics = Oil Choice

Stay healthful!