The US Natural Food Colors Market was valued at USD 577 million in 2024. The market is estimated to reach USD 616 million in 2025 and is projected to grow to USD 1.17 billion by 2035, registering a CAGR of 6.6% during the forecast period.

US Natural Food Colors Market - Key Highlights

Why the US Natural Food Colors Market is Growing?

The US natural food colors market is experiencing strong growth, projected to reach USD 1.17 billion by 2035, driven by consumer demand for clean-label products and willingness to pay premiums.

• Certified organic food sales in the US reached nearly USD 70 billion in 2023, representing about 6-7% of total food sales and growing around 3-3.5% annually. Natural food colors are critical in organic food manufacturing due to USDA Organic restrictions on synthetic dyes.
• The FDA supports natural color adoption, approving new natural color additives in 2025 and encouraging voluntary phase-out of synthetic dyes by 2026.
• The US food processing industry is valued at approximately USD 178 billion in 2025, with major manufacturers investing significantly in natural ingredient innovation.
• The US plant-based food market was $8.1 billion in 2024, with about 59% of households purchasing plant-based foods, though sales growth has recently slowed.
• State regulations, such as California's ban on harmful synthetic additives effective in 2027, and New York's labeling proposals, are driving further market transitions toward natural ingredients.

Market Segmentation

The US natural food colors market is segmented by type, source, form, solubility, application, end-user, and state/region. By type, the market is further segmented into carotenoids, anthocyanins, caramel, chlorophyll, curcumin, betanin, carmine, phycocyanin, and other natural colors. Sources include plants, microorganisms, minerals, and animals. Forms encompass liquid, powder, and other forms. Applications include processed foods and beverages across diverse categories.

Carotenoids Dominate the Overall Natural Food Colors Market with 40-45% Market Share in 2025

Based on type, carotenoids hold the largest share of 40-45% of the US natural food colors market in 2025. The largest share of this segment is supported by well-established supply chains, reliable performance across various food applications, and strong consumer awareness of their health benefits, including their roles as vitamin A precursors and antioxidants.

Each year, the US consumes roughly 15,400 tons of carotenoids in food applications. Important uses include dairy products, where beta-carotene adds color to butter and cheese, beverages that feature natural orange and yellow shades, and processed foods that use annatto in cheese and lycopene in tomato-based products.

Major American suppliers have dedicated carotenoid production and extraction facilities that serve the domestic market. The supply chain benefits from a variety of natural sources like carrots, tomatoes, paprika, and turmeric, which improve resilience and cost efficiency.

Domestic farming of carotenoid-rich crops also helps maintain supply stability, reduces reliance on imports, and ensures traceability, a quality that US consumers and manufacturers highly value.

Processed Foods Lead Applications with 60-70% Market Share

Based on application, the processed foods segment is expected to account for around 60-70% of the US natural food color market in 2025. This category includes bakery and confectionery items of processed food color usage), dairy products, snacks and cereals, and meat processing.

The bakery and confectionery segment is at the forefront of adopting natural colors. This trend is fueled by artisan bakeries, premium chocolate makers, and snack brands that focus on health-conscious consumers. Americans spend around $87 billion on bakery products annually. Natural coloring is essential for product differentiation and clean labels.

Dairy processors are also increasingly using natural colors in cheese, yogurt, and ice cream to meet consumer preference for familiar ingredients. The US dairy industry processes roughly 220 billion pounds of milk every year. Natural colors help distinguish premium products across various categories, from organic milk to artisanal cheeses.

Key Growth Drivers, Restraints, and Trends

The US natural food colors market is poised to grow mainly due to clean-label consumer demand, organic food expansion, regulatory support for natural ingredients, and food industry innovation. However, the growth of this market is expected hinder due to higher costs compared to synthetic alternatives, supply chain complexity, and technical performance limitations. Key trends in this market include plant-based diet adoption, e-commerce growth, and state-level natural ingredient regulations.

Impact of Key Growth Drivers and Restraints

Base CAGR: 6.6%

Market Restraints

Regulatory Framework Supports Natural Food Colors Market in the U.S.

In 2025, the FDA approved three new natural color additives: Galdieria extract blue (from red algae), butterfly pea flower extract (for blues, purples, and greens), and calcium phosphate (a white color). This expands the options for natural colors and helps the industry move away from synthetic dyes. These approvals support a joint FDA and HHS initiative to eliminate petroleum-based synthetic dyes from the US food supply by the end of 2026, relying on voluntary industry compliance. About 40% of the food industry has committed to this phase-out. The FDA also plans to revoke approval for certain synthetic dyes and has increased scrutiny on dyes like Red Dye No. 3, urging manufacturers to stop using them sooner than the deadlines.

USDA Organic Standards under the National Organic Program boost demand for natural colors by banning most synthetic colorants in certified organic products. Organic food sales account for around 6-7% of total US food sales and grow at a moderate rate of about 3-3.5% each year, which supports the continued use of natural colors.

State-level regulations add further momentum. California’s Food Safety Act (AB 418) bans certain synthetic additives, while New York has suggested mandatory natural ingredient labeling. These state actions often pave the way for potential federal regulations and motivate national food brands to reformulate products with natural alternatives.

Overall, the US regulatory landscape combines federal FDA oversight with organic certification standards and progressive state policies. This creates a strong environment for adopting natural food colors amid heightened safety scrutiny and consumer advocacy.

Technology Innovation Drives US Natural Food Colors Leadership

The US leads in natural food color innovation by using improved extraction methods, microencapsulation technologies, and biotechnology. Major companies invest significantly to increase color yield and stability, allowing natural colors to match synthetic options in tough food processing conditions. Progress in precision fermentation makes rare pigments from microorganisms, which lowers costs and boosts supply reliability. Digital tools like AI-driven color matching and blockchain traceability improve product consistency and create transparent supply chains. These solutions tackle long-standing issues with natural colors and support premium, clean-label products. As a result, US companies are at the forefront of providing effective and sustainable natural color options.

Competitive Landscape

• The US natural food colors market includes a variety of players. These range from established ingredient suppliers and niche specialists to large food processing companies with their own capabilities and innovative biotech startups. Leading firms have strong research and development efforts, solid customer relationships, and well-developed supply chains that cover extraction, processing, and distribution.
• Prominent American companies like Sensient Technologies, Archer-Daniels-Midland (ADM), and Kalsec stand out due to their ongoing technological innovation, high-quality customer service, and diverse product lines. These companies draw on decades of experience in color science and food industry applications while ensuring compliance with regulatory standards to meet their customers' needs.
• Multinational corporations such as Givaudan, DSM-Firmenich, and Döhler Group have built significant operations in the US through acquisitions, strategic partnerships, and dedicated production facilities to serve American food manufacturers. Their mix of global innovation and local market knowledge enhances their competitive edge.
• Specialized natural color providers like IFC Solutions, Colormaker, and Roha USA focus on developing, extracting, and providing support for natural colorants. Their expertise in natural color chemistry and food application science allows them to effectively serve niche markets with tailored solutions.
• Additionally, emerging biotech companies such as Perfect Day and Clara Foods, along with various startups, are using advanced technologies like precision fermentation, cellular agriculture, and synthetic biology to create new natural colorants. These innovations aim to meet specific performance standards and create new opportunities for natural and sustainable color production.

Recent Developments in the US Natural Food Colors Market

• February 2025: Sensient Technologies expanded its capabilities in biotechnology through the acquisition of white biotechnology expert Biolie, which uses patented enzymatic extraction technology for natural ingredients. This acquisition broadens Sensient’s active natural color portfolio and strengthens its innovation footprint in sustainable and upcycled natural colors
• May 2025: Givaudan Sense Colour received FDA approval for Everzure™ Galdieria, a natural blue color additive derived from the microalgae Galdieria sulphuraria. This novel blue offers enhanced acid stability and vibrancy, providing a natural alternative to synthetic Blue 1 in beverages and confections.

US Natural Food Colors Market Report Coverage and Summary