Natural Food Color Sales Jump 24% as FDA Pushes Synthetic Dye Phase-Out

Quick Facts

Food and beverage products labeled ‘natural colors’ grew dollar sales 24.4% from 2024 to 2025, versus 0.1% growth for products labeled ‘artificial colors.’
The FDA launched an initiative in April 2025 to phase out all petroleum-based synthetic food dyes, with an end-of-2027 target for industry-wide elimination.
Nestle USA completed removal of all artificial colors from its U.S. products by June 2026, while Mars Wrigley plans naturally colored versions of M&Ms, Skittles, Starburst, and Extra Gum in 2026.

Consumer demand for cleaner labels is reshaping the food and beverage industry at scale. A new report from the National Confectioners Association and RTI International found that products advertising natural colors grew dollar sales 24.4% from 2024 to 2025. Products listing artificial colors grew just 0.1% in the same period.

The growth spans multiple categories. Prepared food led with 52.5% growth, followed by diet and nutrition at 40.6%, baking and seasonings at 27.1%, and dairy at 21.7%. Candy products with natural colors grew nearly 20%, compared to 0.2% for candy with artificial colors.

Synthetic dyes still hold ground in certain segments. In 2025, products with artificial dyes made up 4% of all food and beverage products but accounted for 7% of dollar sales. In candy specifically, artificial colors still represent 42.2% of sales.

Regulatory Pressure Accelerates Timelines

The FDA banned synthetic red dye FD&C Red No. 3 in January 2025, effective January 2027. In April 2025, the FDA and the Department of Health and Human Services launched a broader initiative to phase out all petroleum-based synthetic food dyes by end of 2027.

FDA Commissioner Marty Makary pointed to public health concerns. “Parents and doctors have concerns about petroleum-based food dyes, which have no nutritional benefit,” Makary said. “Given the epidemic we face of childhood diabetes, obesity, depression, and ADHD, it’s common sense to work together to remove these chemicals.”

The FDA also approved four new natural color alternatives this year: galdieria extract blue derived from algae, butterfly pea flower extract, calcium phosphate as a white pigment, and Gardenia blue derived from fruit. Companies can now label products as containing “no artificial colors” when they contain no petroleum-based colors, a policy change that expands labeling options for reformulated products.

The Supply Chain Challenge

The NCA and RTI International report, titled Recoloring the U.S. Food Industry’s Future, warns that the shift is not a simple reformulation exercise. Replacing synthetic dyes affects agriculture, manufacturing, logistics, and food production infrastructure. Many natural color ingredients rely on global sourcing, with key raw materials produced primarily outside the U.S.

NCA President and CEO John Downs called it a supply chain transformation. The necessary ingredients, agricultural capacity, manufacturing systems, and infrastructure cannot be developed overnight, he said.

Sensient Technologies CEO Paul Manning acknowledged the cost gap. Synthetic colors represent a small fraction of product costs, but natural alternatives are more expensive and account for a larger share of product economics. Manning argued those costs can be offset by market share gains from consumers willing to pay a premium for natural ingredients.

Brands Move Fast

Major food companies are not waiting. Nestle USA announced in June 2026 that it removed all artificial colors from its U.S. food and beverage portfolio, meeting a deadline it set one year earlier. The change applied to roughly 10% of its offerings, as most of its categories had not previously used synthetic colors.

Mars Wrigley North America announced in July 2025 that it will offer versions of M&Ms Chocolate, Skittles Original, Extra Gum Spearmint, and Starburst Original without synthetic FD&C colors in 2026. Kraft Heinz and General Mills both announced similar commitments in June 2025.

Kellanova Senior Director of Sweet Snacking Innovation Andrew Lorden said the firm regulatory deadline is pushing faster action. “Definitely having that firm deadline pushes you to move fast,” Lorden said.

For food and beverage brands still relying on synthetic dyes, the window to reformulate is narrowing. Consumer purchasing data, regulatory mandates, and competitor moves are all pointing in the same direction.