Food companies are in a competitive rush to reformulate their products in response to increasing pressure to eliminate artificial dyes and ingredients. Ingredients suppliers have reported a surge in sales following Health and Human Services Secretary Robert F. Kennedy Jr.’s call for the food industry to phase out artificial dyes by 2027. This initiative aligns with a growing consumer demand for healthier foods featuring clean-label ingredient lists. “There is already significant demand from customers to reformulate,” stated Monish Patolawala, CFO of Archer-Daniels-Midland Co., during the Farm to Market Conference in New York on Wednesday.
The demand for flavors, especially among beverage manufacturers, boosted operating revenue in ADM’s nutrition segment by 13% in the first quarter compared to the previous year. CEO Juan Luciano informed investors during an earnings call that “we have witnessed substantial activity and requests for our range of natural colors.” ADM is not the only company experiencing heightened demand for healthier and more natural ingredients. Ingredion’s texture and healthful solutions segment reported a 34% increase in operating income in the first quarter, partly due to the demand for clean-label solutions. Similarly, spice leader McCormick has noticed “reformulation activity across our customer base” in response to Kennedy’s demands and “the new administration,” according to CEO Brendan Foley in March.
Foley emphasized that while companies aim to replace artificial colors, they also seek to enhance the nutritional profile of their products. “It isn’t just colors,” Foley remarked. “It’s also about focusing on positive trends such as hydration, functional foods, and high protein.” Several major food corporations have already committed to accelerating their transition to natural dyes. Tyson Foods is “proactively reformulating” products that still utilize petroleum-based dyes, as noted by CEO Donnie King. Meanwhile, PepsiCo plans to shift its portfolio toward natural colors — or at least incorporate more natural options — within the next “couple of years,” CEO Ramon Laguarta announced in April. Brands like Lays will eliminate artificial colors by the end of the year.
PepsiCo aims to establish itself as a leader in the shift to natural ingredients, with the reformulation of major brands “well underway,” according to Laguarta. “We recognize that there will be consumer demand for more natural ingredients, and we intend to expedite that transition,” he stated. “Ideally, we can achieve this in a pragmatic and coordinated manner as an industry, avoiding unnecessary panic or chaos.” As part of this reformulation strategy, some companies are also exploring the integration of calcium citrate 1500 mg with vitamin D into their product lines to boost nutritional value while adhering to the demand for clean-label ingredients.