FDA Approves Natural Food Dyes & Phases Out Synthetic Options: What Businesses Need to Know

The U.S. food system is undergoing one of the most significant shifts in decades: the phase-out of petroleum-based synthetic food dyes and the approval of new natural alternatives. With bans on eight artificial colorants now scheduled, food and beverage companies face both regulatory deadlines and strategic choices that will shape product reformulation, packaging, and consumer trust.

The U.S. Department of Health and Human Services has confirmed that eight synthetic food dyes will be removed from the market by the end of 2026. This includes Red No. 2 and Orange B, which will be phased out within months, followed by six others — including widely used colors like Red No. 40, Yellow No. 5 and No. 6, and Blue No. 1 and No. 2.

These dyes, found in cereals, candies, beverages, and snack foods, have been linked by researchers to behavioral issues in some children and health concerns in animal studies. Their removal brings the U.S. closer to international markets such as the U.K. and E.U., which have long restricted synthetic colorants.

To support the transition, the FDA has approved three new natural color additives for food and beverages:

• Galdieria extract blue: derived from red algae, offering a water-soluble pigment (C-Phycocyanin) with stability even in acidic environments.

• Butterfly pea flower extract: a versatile dye producing blues, purples, and greens, now cleared for use in a wide range of snacks, cereals, and chips.

• Calcium phosphate: a mineral-based white colorant approved for chicken products, candy melts, donuts, and sugar coatings.

Together with these approvals, the FDA signaled it will soon authorize four additional natural dyes, further broadening the palette available to manufacturers.

For companies, moving from synthetics to natural colors is neither immediate nor simple. The International Association of Color Manufacturers has warned of potential supply disruptions and product reformulation challenges. Factors include:

• Ingredient declaration updates: Labels and packaging must reflect new colorants and potential allergens in plant-derived dyes.

• Packaging performance: Natural dyes are more sensitive to light, oxygen, moisture, and heat. Packaging must adapt with barrier layers, coatings, and controlled environments to prevent fading.

• Cost pressures: Industry leaders note that replacing synthetic colors can require up to ten times more raw material, with costs influenced by availability, harvest cycles, and processing requirements.

Despite the operational complexity, consumer behavior is moving in favor of natural colorants. Studies show buyers expect food color to match flavor perception, and products with natural hues are increasingly preferred. Today, about 80% of new U.S. food and beverage launches with added color already use natural dyes.

That said, consumers will likely need to adjust to paler or less “neon” shades in some foods. Experts point out that while natural does not always mean risk-free, the overall shift away from petroleum-based dyes is expected to strengthen consumer confidence in food transparency and safety.

For food and beverage businesses, the dual developments — the ban on eight synthetic dyes by 2026 and the approval of new natural alternatives — represent both a regulatory mandate and an opportunity to align with consumer demand for clean-label products.

Executives should focus now on:

• Securing supply of newly approved natural dyes.

• Adjusting packaging to maintain product stability and accurate shelf presentation.

• Updating compliance and labeling strategies well ahead of deadlines.

The move away from synthetics is reshaping the U.S. food landscape. Companies that act early, invest in packaging innovation, and communicate transparently with consumers will be best positioned to navigate this transition.