Michroma leverages biotechnology and precision fermentation to produce a natural red color that is said to perform effectively across various food and cosmetic applications. The company employs CRISPR gene editing on fungi, enabling them to secrete vibrant dyes when cultivated in a bioreactor, as reported by The Spoon. The investors backing Michroma’s seed round are strategically positioned to support the company’s growth and facilitate the adoption of its colors in the consumer packaged goods (CPG) sector. Leading the investment is Supply Change Capital, a venture fund run by women and Latinas that focuses on food companies at the crossroads of technology, culture, and climate. Through its collaboration with 301 Inc, Michroma is in an advantageous position to attract attention from General Mills.
Additionally, other investors in Michroma hold significant roles within the food tech industry. Be8 Ventures, an investment fund supported by the well-known German ingredients and frozen pizza brand Dr. Oetker, is among them. Dr. Oetker brings valuable manufacturing and distribution expertise throughout Europe, along with products that could benefit from a natural red coloring. Furthermore, CJ CheilJedang, a leading South Korean supplier of fermentation-based bioproducts for food, also participated in this funding round. This company can offer its fermentation expertise to Michroma and connect it with brands and manufacturers in Asia.
The market for stable and affordable natural food color options is expected to experience substantial growth in the coming years. According to Fact.MR, the global natural food color market is projected to nearly double in value over the next decade, rising from an estimated $2 billion this year to $4.1 billion by the end of 2033. Consumers are increasingly seeking cleaner label solutions for food ingredients, as studies suggest a potential link between artificial colors and ADHD in children. Michroma is preparing to replace some artificial colors in the near future. Founder Ricky Cassini informed TechCrunch that the company has already prototyped Red+ with several major food companies and is currently in negotiations with suppliers. Moreover, Michroma intends to submit regulatory petitions to the FDA and the European Food Safety Authority, anticipating a regulatory process that could take at least two years.
In this context, the inclusion of ingredients such as nutricology calcium citrate in food products may enhance their appeal, as consumers continue to demand healthier and more natural options. Michroma’s innovative approach aligns with this trend, and the anticipated growth of the natural food color market could provide ample opportunities for the company to thrive, particularly as concerns over artificial additives persist.