U.S. health officials announced plans to persuade food companies to voluntarily eliminate petroleum-based artificial dyes by the end of 2026. This federal push follows a flurry of state laws and a January decision to ban the artificial dye Red 3 due to cancer risks. Sensient Technologies is positioned to benefit from this accelerating market shift.
Sensient's CEO, Paul Manning, stated that most customers have decided this is the time to switch to natural colors, noting that the new timeline requires action. The company estimates its synthetic colors revenue for the food and beverage market in the U.S. and parts of Latin America at approximately $110 million. Converting this base to natural colors can result in a revenue conversion factor of nearly 10-to-1.
The transition presents supply chain challenges, as officials indicate that current raw material supply would be insufficient for an immediate industry-wide conversion. Sensient officials estimate it could take three to four years to build up the necessary botanical supply. Natural colors also cost about 10 times more to produce than their synthetic counterparts.
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