News

US artificial dye phase-out plan drives growth for natural alternatives

With the US phasing out artificial dyes, brands are exploring aquatic environments, fruits, and food waste to replicate colour in formulations.

After the US Food and Drug Administration (FDA) announced it would be banning synthetic dyes over the next two years, manufacturers are pursuing production plans for natural colours in their food and beverage (F&B) formulations.

For both brands based in the US and those exporting to its $875.78 billion (€773 bn) food market, exploring and experimenting with natural ingredients is now an even bigger consideration.

But this could open up opportunities for brands like foodtech company FUL Foods, which has developed a natural food colour solution using spirulina, a blue-green algae known for its numerous health benefits, including being rich in protein, antioxidants, and vitamins and minerals.

^{© FUL}

Natural ingredient brands ramp up alternative production

Developing a blue dye to replace Blue No. 1 and FD&C Blue No. 2 synthetic colourings, the Netherlands-based company aims to respond to the accelerating shift in the global food colour market, which is estimated to surpass $5 billion (€4.4 bn) by 2032.

“What we’re most excited about is that this couldn’t come at a better time for us: we’ve built the supply chain, we’ve scaled our production, and we’re well positioned to help brands make this transition quickly and confidently,” Julia Streuli, CEO and co-founder, told Ingredients Network.

FUL Foods said its R&D process was “truly global and deeply collaborative”. The brand worked closely with its food science team in the Netherlands and partnered with the University of Wageningen, a leading food innovation hub, to develop its new natural dye.

Working with the photobioreactor company, FUL Foods developed proprietary extraction technology, which is protected by four patents.

“Our focus was on unlocking spirulina’s full potential, making it both functional and stable enough to meet the rigorous demands of modern food and beverage applications,” said Strueli.

Manufacturing with microalgae

FUL Foods opted to use spirulina because it holds colour vibrancy within its various formulations.

Since its early days, the company has worked with spirulina, recognising it as a nutrient-dense ingredient with sustainability credentials that appeal to climate-conscious consumers, brands, and investors alike.

“Spirulina has one of the highest yields and lowest resource footprints of any natural crop,” said Strueli.

The brand also chose spirulina because it utilises limited freshwater, does not require arable land, grows quickly, and can capture carbon dioxide (CO₂) more efficiently than trees.

“Unlike artificial dyes, which are petroleum-based, offer no nutritional value, and have been linked to negative health outcomes, spirulina is packed with functional benefits,” said Strueli.

Blue spirulina contains phycocyanin, a powerful antioxidant with anti-inflammatory properties – so while artificial dyes bring only colour, FUL Foods found spirulina delivers vibrant, stable blue and real nutritional value.

“It’s a no-brainer for brands looking to make cleaner, healthier products without sacrificing performance,” Strueli added.

Replicating the hardest colour in food manufacturing

Historically, the ingredient’s main challenge has been its instability.

“Blue is rare in nature for a reason. But we’ve cracked the code,” Strueli said.

Blue food colouring is known in the food industry as the most challenging colour to mimic naturally across various food categories, including candy and beverages. Using its proprietary technology, FUL Foods can produce blue spirulina-based syrups and powders.

The company’s patented process makes spirulina pH- and heat-stable, unlocking new applications across F&B.

“There are other natural blues out there, but they simply don’t deliver on colour, functionality, and sustainability the way spirulina does,” added Strueli.

Box out: Natural dye alternatives

● Bio-solutions provider Fermentalg uses aquatic microorganisms to produce its natural blue food dye. Its natural alternative to synthetic dyes, derived from a unique strain of microalgae known as Galdieria sulphuraria, is currently awaiting approval from the FDA.

● Research from the Ohio State University College of Food, Agricultural, and Environmental Sciences (CFAES) has explored water-soluble pigments like anthocyanins to replace synthetic dyes. These natural colours create vibrant shades in fruits like blackberries, red cabbage, and grapes.

● Minimising food waste is a key trend, along with using natural rather than synthetic ingredients. Research from a 2025 study indicates a growing interest in using pigments derived from food waste to enhance the environmentally conscious nature of food dyes.