Challenges Food Companies Face When Reformulating Products to Eliminate Artificial Colors and Flavors

On July 17, 2025, PepsiCo CEO Ramon Laguarta emphasized the company's pivot toward natural ingredients, stating, “If you think about the simplest and most natural snack, it is a potato chip. It’s a potato, it’s oil, and it’s a little bit of salt—no artificial ingredients.” This reformulation is central to PepsiCo’s strategy for enhancing the health perception of its snack portfolio, including incorporating premium ingredients like avocado and olive oils across brands such as Lay’s and Tostitos.

(Photo: Zoshua Colah on Unsplash)

The announcement aligns with mounting regulatory pressure. On April 22, 2025, Health and Human Services Secretary Robert F. Kennedy Jr. unveiled a comprehensive FDA initiative under the “Make America Healthy Again” campaign, aiming to phase out all petroleum-based synthetic food dyes from the U.S. food supply by the end of 2026. The FDA plans to revoke authorization for two rarely used dyes—Citrus Red No. 2 and Orange B—within months, while collaborating with manufacturers to voluntarily eliminate six widely used synthetic dyes: Green 3, Red 40, Yellow 5, Yellow 6, Blue 1, and Blue 2. The reform comes amid renewed scrutiny of synthetic food dyes and their potential behavioral effects in children. A review of 27 clinical trials found that 64% reported behavioral responses to artificial colors, with 52% showing statistically significant results. Yellow No. 5 (tartrazine) was especially linked to increased hyperactivity at higher doses, and meta-analyses suggest dyes may worsen symptoms in about 8% of children with ADHD.

Artificial food dyes like Yellow No. 5 (tartrazine) have been linked to hyperactivity and behavioral issues in children.

Global Trends and Potential Newcomers

PepsiCo's move is part of a broader global trend where food brands are responding to evolving consumer expectations for transparency, wellness, and "clean-label" products. Driven by health advocacy, regulatory shifts, several major players have already committed to or completed similar reformulations. Here are key examples, drawn from recent company announcements and industry reports:

• Kraft Heinz: The company removed artificial colors and flavors from its iconic macaroni and cheese in 2016, a change that involved testing over 50 recipes to maintain taste. It has since committed to eliminating artificial colors from all U.S. products by the end of 2027, with nearly 90% already free of them.

• General Mills: Building on its 2015 removal of artificial additives from cereals like Trix and Lucky Charms, the company plans to eliminate artificial colors from all U.S. products by the end of 2027, including cereals and K-12 school foods.

• Nestlé USA: The brand has set an ambitious goal to phase out all Food, Drug & Cosmetic (FD&C) colors from its food and beverage lineup by mid-2026, expanding on earlier efforts in candies like Butterfinger. This reflects Nestlé's global "Nestlé for Healthier Kids" initiative.

• Kellogg: The company will stop using artificial dyes in its breakfast cereals by the end of 2027, building on earlier commitments to natural ingredients in products like Froot Loops.

• U.S. Ice Cream Makers: Major players, including those under the International Dairy Foods Association, have pledged to eliminate certified artificial colors from ice cream products by the end of 2027, responding to parental concerns about additives linked to hyperactivity.

Countries differ on the restrictions they have in place, highlighting the global patchwork of regulations. Historically, the UK and the European Union have been stricter than the US, phasing out artificial colourings over the last 20 years and introducing warnings on foods with other colours—moves that have inspired similar actions worldwide.

In Australia, Aldi became the first major supermarket chain to remove artificial colors from its entire food range, including branded products, as early as 2011.

Challenges Food Companies Face When Reformulating Products to Eliminate Artificial Colors and Flavors

Reformulating to remove artificial additives is far from straightforward, involving technical, financial, and market hurdles that can span years and millions in costs. These challenges underscore the complexity of aligning products with health trends while maintaining appeal.

• Technical and Scientific Hurdles: Natural alternatives, such as beet juice for red coloring or fruit extracts for flavors, often lack the stability of synthetics, leading to issues like fading colors, shorter shelf life, or inconsistent taste. For example, General Mills faced backlash when natural colors in Trix cereal couldn't replicate vibrant hues, requiring multiple iterations.

• Cost and Supply Chain Issues: Natural ingredients are pricier (up to 5-10 times more than artificial ones) and vulnerable to supply disruptions from weather or global events. Mars, for instance, incurred higher costs when sourcing spirulina for M&M's natural blue coloring, impacting pricing and logistics.

• Regulatory and Compliance Complexities: Varying global standards—such as EU bans on certain dyes versus voluntary U.S. guidelines—create dual supply chains. Companies must also ensure accurate labeling to avoid lawsuits, as seen in scrutiny over "natural" claims.

• Consumer Acceptance Risks: Changes can alter familiar tastes or appearances, risking sales dips. Kraft's macaroni reformulation succeeded after extensive testing, but not without initial consumer pushback on subtle flavor shifts.

These obstacles highlight why reformulations, like PepsiCo's 2025 deadline, demand significant R&D investment.

Food manufacturers face significant hurdles in reformulating products, including replicating the stability and vibrancy of artificial colors with natural alternatives that often fade or alter taste profiles.

How to Overcome These Challenges

Despite the hurdles, food companies are innovating to make natural reformulations viable, viewing them as opportunities for growth and brand loyalty. Strategies include phased rollouts (e.g., testing in one market before global expansion, as PepsiCo is doing), consumer focus groups for feedback, and partnerships with suppliers for stable natural sources. Investments in biotechnology, like lab-grown flavors, help reduce costs and volatility—Unilever, for instance, has built resilient supply chains through sustainable farming collaborations.

Can AI Flavor-Matching Technology Serve as a New Solution?

Yes—AI in flavor development analyzes vast databases of natural ingredients and molecular structures to identify and enhance compounds for desired sensory effects, such as sweetness or umami, reducing trial runs and enabling precise substitutions like natural amino acids for savory boosts in plant-based products. As seen at firms like Trilogy Flavors, it balances clean-label constraints by recommending stable, natural alternatives that maintain taste and shelf life without synthetics. Combining AI-driven insights with human expertise accelerates sustainable innovation, though it still requires validation, making reformulations more efficient amid regulatory demands.

From data to delicious: AI-driven platforms enable precise enhancements of natural compounds, making reformulations faster and more efficient for health-conscious brands.

In conclusion, as consumer demand and regulations evolve, these innovations signal a healthier future for the food industry.