US Synthetic Colour Phase-Out Drives Natural Colour Production Expansion
California Natural Color is expanding its Fresno facility to meet surging demand for natural colorants, driven by the US synthetic dye phase-out and retailer-led reformulation mandates. This expansion is critical as deadlines for synthetic colour removal approach, impacting ingredient procurement and product development cycles for US supplement brands.
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Fresno, United States — California Natural Color (CNC) is undertaking a significant expansion of its production facility in Fresno, California, in response to escalating demand for natural colour solutions and grape seed extract. The company anticipates the enlarged facility will be fully operational by the end of 2027. This capacity increase directly addresses the market shift away from synthetic dyes, a movement intensified by new US regulatory pressure and stringent retailer requirements.
The US Department of Health and Human Services' 'Make America Healthy Again' initiative, launched in April 2025, mandates the phase-out of synthetic and petroleum-based dyes from the US food supply, with compliance deadlines extending through 2027 and 2028. Concurrently, a recent FDA policy change now permits products formulated with natural dyes to carry a 'no artificial colors' claim, offering a clear market differentiator for brands. Bill McMorran, VP and General Manager at California Natural Color, affirmed to Food Ingredients First that these regulatory shifts and heightened retailer interest are compelling brands to prioritise reformulation.
The transition from synthetic to natural colourants introduces formulation complexities, including maintaining vibrant shades, ensuring stability, and managing performance through handling, storage, and transport. CNC highlights its 'crystal color technology' as a solution, offering high concentration, solubility, and shelf stability to mitigate these challenges. This innovation aims to bridge the formulation gap between synthetic and natural options, enhancing operational flexibility for manufacturers seeking efficient and consistent colour solutions.
The market pressure on brands and retailers is considerable. US retailer Target has already committed to stocking only cereals free from certified synthetic colours. Major producers like Kraft Heinz and General Mills are also targeting the complete phase-out of synthetic colour additives by the end of 2027. This industry-wide shift extends across beverages, bakery, and confectionery, with strong demand for natural colours impacting the supply chain for supplement manufacturers. The CNC expansion is designed to support this growing portfolio demand, offering increased flexibility and customer growth opportunities in multiple application areas, including grape seed extract.
What this means for United States
US supplement manufacturers must proactively audit their product portfolios for synthetic colour content, aligning reformulation efforts with the 2027-2028 regulatory deadlines to prevent market exclusion. Procurement teams should anticipate potential supply chain bottlenecks and cost increases for natural colourants due to heightened demand, necessitating strategic sourcing and potentially higher MOQs. Brands can leverage the 'no artificial colors' claim for compliant products, enhancing consumer trust and market positioning against competitors still using synthetic additives. Failure to adapt will result in significant compliance risks and market share erosion.
Many leading brands in this category are manufactured in partnership with Supplement Factory.