14 August 2025

In Europe, we are quite spoiled in terms of food safety—especially when compared with other parts of the world, including the United States. In the European Union (EU), foods containing certain synthetic dyes must bear warnings such as “may have an adverse effect on activity and attention in children”. The U.S., by contrast, does not mandate such cautionary labels. The EU also prohibits several dyes that remain permitted in the U.S., including FD&C Green No. 3 (Fast Green FCF), Citrus Red No. 2, Orange B and Erythrosine (Red No. 3).

Support for actionable progress is growing, however. The results of a survey, commissioned by natural food colouring specialist Oterra, show that 78% of U.S. shoppers are somewhat concerned to fearful of artificial food colours—especially where children were involved. Similarly, independent studies and surveys show American consumers increasingly associate natural colours with being “natural”, “safe” and “healthy”, reinforcing the impetus for manufacturers to pivot to botanical and other natural options.

“While legislation has changed the business environment more in favour of natural colours, consumer perceptions and opinions have played a large part in pushing for legislative change. We were interested in what people thought immediately after the decision and ahead of one of the largest food and beverage trade shows in the US we decided to do a survey to find out,” says Caroline Schroeder, NAM Regional Marketing Manager at Oterra, explaining why Oterra commissioned the survey in an interview with Movetheneedle.news.

U.S. Regulatory Landscape: From Permissive to Progressive

Historically, the United States adopted a more permissive stance toward synthetic food dyes. Under the Federal Food, Drug, and Cosmetic Act, artificial colour additives require certification—meaning each batch is tested and certified by the FDA before use—and must meet safety requirements. Exempt from certification are colourants derived from natural sources—vegetables, minerals or animals—such as annatto extract, beta-carotene or grape skin extract.

As of early 2025, among the synthetic colourants approved for use in U.S. foods were FD&C Blue No. 1, Blue No. 2, Green No. 3, Red No. 3 (Erythrosine), Red No. 40, Yellow No. 5 and Yellow No. 6. Two additional dyes—Citrus Red No. 2 and Orange B—are permitted only under very limited, specific applications.

However, regulatory winds are shifting. On 22 April 2025, the U.S. Department of Health and Human Services and FDA announced a clear timeline to phase out all petroleum-based synthetic dyes from the American food supply. This included revoking authorisation for Citrus Red No. 2 and Orange B, and plans to eliminate six remaining synthetic dyes—including Red No. 40, Yellow No. 5 and Blue No. 1—by the end of 2026.

Synthetic dyes such as Red No. 3 (Erythrosine) were specifically banned outright by the FDA in January 2025, with enforcement slated for January 2027. Concurrently, the FDA has fast-tracked approval processes for natural alternatives, already authorising gardenia-blue (genipin), several algae-based and plant-derived pigments such as butterfly-pea flower and calcium phosphate, among others.

This shift is being felt throughout industry: major food companies, including Kraft Heinz, have pledged to eliminate synthetic dyes (e.g., Jell-O, Kool-Aid, Crystal Light, Jet-Puffed marshmallows) by 2027. Likewise, manufacturers are transitioning to natural sources such as beet extract, spirulina-derived phycocyanin, turmeric, paprika, annatto, carrot, red beets, sweet potato and many others.

Oterra: Pioneering Natural Colours with U.S. Foundations

Oterra is ready to help the food industry make that shift. Oterra, a leading natural colour producer, was created by bringing together the natural colours division of Denmark-based Chr. Hansen with several other leading natural colour producers to create a natural colours company that now has one of the broadest portfolios with a global footprint, and production facilities in Denmark, USA, France, Italy, Spain, India and Turkey. The company sells in all regions of the world.

Crucially, for the U.S. market, Oterra has significantly deepened its presence in recent years:

• In December 2024, Oterra inaugurated a 155 000 sq ft innovation, application, production and logistics hub in Mount Pleasant, Wisconsin—its U.S. headquarters. The facility also includes 40 000 sq ft reserved for future product development and pilot production lines.
• The facility houses innovation and application labs, manufacturing, logistics and regulatory support—positioning Oterra to meet increasing demand from U.S. and North American clients.

Strict Standards, Lots Of Options

Depending on the type of product, Ottera offers several different options too food manufacturers. “Most common are alternatives such as Red Beet or Hansen sweet potato,” Schroeder explains. “We can get close to around 80%-90% of most colour shades using our existing portfolio. Reds and yellows are the easiest to match, but blues can be more complicated. Finding the right match requires time to find a solution. We created pigments and colouring solutions from raw materials such as turmeric, paprika, annatto, carrot, cochineal, sweet potato, red beets, grape, and many more.”

The journey to safe, high-quality natural colours starts long before ingredients reach their production facilities, Schroeder emphasises. “It begins in the fields where we work directly with our agricultural partners to control and monitor the use of pesticides and other potential contaminants. Farmers we work with commit to strict standards, including a defined list of restricted substances.”

De-Bunking Natural Colour Myths

While natural food colouring is gaining momentum, some myths and misperceptions remain among some US food producers. “The most widespread myth is that vibrant colours are not possible with natural colours,” says Schroeder. “A decade ago, natural colours were indeed less vibrant and more pastel in colours. But by improving breeding and how we extract colour we have successfully enhanced the strength of the pigments. Now natural colours are as vibrant as artificial ones.”

As an example, she highlights Oterra’s Hansen sweet potato, which is used in applications to replace Red 3 among others, started life yielding around 8 colour units. Further development has seen that rise to 15, then 20 and now to around 40 – a nearly four-fold increase.

“There is no doubt that artificial colours are easy and more straightforward to work with, but the natural appeal of colours made with raw materials from nature is strong and getting stronger,” Schroeder concludes.

Why This Matters: Regulatory, Commercial and Ethical Forces

1. Regulatory Forces
   The FDA’s mobilised phase-out plans and open embrace of natural colourants have created urgency. With synthetic dyes earmarked for removal by 2026–2027, manufacturers must reformulate fast or they risk regulatory non-compliance. Oterra’s U.S. presence and expertise lay the groundwork for efficient reformulation support.
2. Consumer Expectations
   Consumers are increasingly vigilant about artificial additives. Surveys signal significant concern—78% or more—about synthetic dyes, especially for child-consumables. In response, brands must deliver “clean-label” options without sacrificing visual appeal.
3. Formulation Complexity
   Natural colourants demand expert handling. Reds and yellows are easier to replicate; blues remain challenging. Oterra draws on raw materials like turmeric, annatto, sweet potato, red beets and others to approximate synthetic vibrancy. Their R&D and application labs aim to overcome obstacles in stability, vibrancy and supply chain consistency.
4. Scale and Supply
   Transitioning away from petroleum-derived dyes isn’t just a technical hurdle—it’s logistical. Scaling sustainable agricultural sources and supply chains for natural colours takes years. Oterra’s integrated U.S. facility and global agricultural network help enable this transition.
5. Ethical and Safety Standards
   Oterra doesn’t stop at legal compliance. Their operations span EFSA, FDA, Codex Alimentarius and other standards; they aim to exceed expectations. Certifications—including organic, non-GMO, vegan, halal, kosher and responsibly-sourced palm oil—reflect their commitment to quality and ethics.

From warning labels to outright bans, the EU has a tough stance on synthetic dyes that the United States is now catching up on, creating a fantastic market opportunity for natural colour specialists such as Oterra.