The meteoric rise in palm oil prices to record levels is poised to inflate costs for everyone from restaurants to confectionery and cosmetic manufacturers, and could potentially change consumption patterns.

The world’s most consumed edible oil is found in products as diverse as chocolate, pastries, soaps, lipstick and biofuel, and is widely used in Asian restaurants. The tropical oil has surged more than 120% in the past year and burst through 4,500 ringgit ($1,091) a tonne to a record on Wednesday...