US cracks down on Red 40 as synthetic food dyes face growing backlash

The US is moving to reduce petroleum-based synthetic dyes in food, with Red 40—also called Allura Red AC—facing growing scrutiny. Despite its widespread use in sweets, drinks, and processed foods, regulators and companies are now pushing for alternatives. The shift follows concerns over health effects, particularly in children, and new state-level restrictions. Red 40 remains one of the most common artificial dyes in packaged foods, even as warnings appear on products in the UK and EU. Labels there must highlight possible links to hyperactivity in children. Meanwhile, California has banned Red 40 and other synthetic dyes from school meals, signalling stricter controls.

The FDA has already taken action against another dye, revoking approval for FD&C Red No. 3 in 2025. Companies must comply by January 2027, adding pressure to find replacements. Major food brands and retailers have begun pledging to phase out petroleum-based dyes entirely. To meet demand, firms like Oterra and Debut are turning to precision fermentation. This method could produce natural red, orange, and violet shades more reliably than traditional farming. Investors are backing the technology, drawn by its potential to cut land and water use while delivering consistent results. The global market for Allura Red AC alone runs into hundreds of millions, making the race for alternatives highly competitive.

The push to replace synthetic dyes is gaining momentum, with regulatory deadlines and consumer pressure driving change. Fermentation-based solutions could soon dominate the market, offering a more sustainable way to colour foods. The transition will likely reshape supply chains and product formulations in the coming years.