Natural Food Dyes See Significant Sales Growth Amid Shifting Consumer Preferences

Consumer demand for natural ingredients is driving a significant shift in the food industry, with products listing "natural colors" on their packaging experiencing substantial sales growth. This trend aligns with regulatory actions, as the U.S. Food and Drug Administration (FDA) has moved to phase out synthetic dyes from food.

A report from the National Confectioners Association and RTI International shows that sales of food and beverages with natural colors grew by 24.4% from 2024 to 2025. In contrast, products with artificial colors saw only 0.1% growth during the same period. Sales have notably declined for products featuring specific artificial dyes like Red No. 40, Yellow No. 5, and Yellow No. 6.

The growth in natural colorant use was most pronounced in prepared foods (up 52.5%), diet and nutrition products (40.6%), and baking, seasoning, and toppings (27.1%). Candy (19.1%) and beverages (12.1%) also showed increases.

This transition presents challenges, including higher costs, potential supply instability, and uneven implementation across the industry. Natural colorants can be less consistent, less stable, and up to 10 times more expensive than synthetic alternatives. Furthermore, current supply levels may not meet a widespread industry shift.

Major retailers like Target and Walmart have begun removing products with synthetic colors, and manufacturers such as Kraft Heinz and General Mills have committed to phasing out artificial dyes by 2027. Companies face a complex reformulation process, with some, like Welch's Fruit Snacks, taking up to a decade to transition. Consumer preference, supported by increasing state-level regulations, appears to be the primary driver for this industry-wide change.