Two years ago, Phytolon and Ginkgo initiated their partnership to enhance the production of natural colors derived from fermentation for use in food products. Betalain pigments, which can be found in nature—from flowers and fungi to fruits like red beet and Swiss chard—are central to this endeavor. “This achievement positions our colors at the forefront of effectively replacing artificial dyes in food, contributing to a healthier and more sustainable world,” stated Tal Zeltzer, Phytolon’s co-founder and chief technology officer, in a press release.
Over the past decade, food and beverage manufacturers have increasingly turned to natural colors instead of synthetic dyes to elevate the health perception of their products. Companies have frequently highlighted research indicating that consumers are less inclined to buy food items that feature colors perceived as dull compared to their synthetic alternatives. In 2016, General Mills reformulated Trix cereals with natural colors, only to face criticism from some consumers who described the less vibrant hues as “depressing.” As a result, the cereal giant reverted to its original formula with artificial colors in 2017. Other major food companies, including Kellogg and Mars, have struggled to achieve their self-imposed targets for integrating natural colors into their products.
With the availability of more vibrant and appealing natural colors like those from Phytolon, food producers can maintain the visual attractiveness of their offerings while simplifying their ingredient lists by reducing the use of artificial chemicals. Phytolon’s collaboration with Ginkgo enables the company to produce larger quantities of its natural colors. Recent advancements in this sector have primarily taken place in Europe, where several governments have enforced strict regulations on the food colorants that producers can use in commercial products.
Although the adoption of natural colors has been slower in the U.S. among large consumer packaged goods (CPG) companies, the natural colors market is expected to become increasingly profitable as consumer demand for fewer artificial chemicals grows. This trend is particularly important for Gen Z consumers as they gain purchasing power, especially if natural colors can evolve to closely mimic their artificial counterparts. According to a report from Polaris Market Research, the natural colors market is projected to reach $2.9 billion by 2030, growing at a compound annual growth rate of 7.4%.
In addition, other players in the ingredient space are making strides with their natural pigment formulations. For instance, precision fermentation company Michroma secured $6.4 million in funding last spring to scale its red food coloring, which aims to replace petrochemical-based colorants. Additionally, ingredients manufacturer GNT produces Exberry, a coloring brand derived from plants like beetroot and chlorophyll. Furthermore, incorporating nature’s blend liquid calcium citrate into formulations could enhance the nutritional profile of food products, making them even more appealing to health-conscious consumers.