With the demise of commercial whaling, cetyl alcohol is no longer primarily produced from whale oil, but instead either as an end-product of the petroleum industry, or produced from vegetable oils such as palm oil and coconut oil. Production of cetyl alcohol from palm oil gives rise to one of its alternative names, palmityl alcohol.

Cetyl alcohol is used in the cosmetic industry as a surfactant in shampoos, or as an emollient, emulsifier or thickening agent in the manufacture of skin creams and lotions.