The FDA has issued a final order revoking the use of Orange B as a food color additive and is proposing to revoke Citrus Red No. 2, both petroleum-based dyes. The action is part of the Trump administration's "Make America Healthy Again" initiative to modernize food safety regulations by eliminating outdated colorants.
FDA Revokes Petroleum-Based Food Dyes—Natural Color Makers Win
Orange B and Citrus Red No. 2 face removal from food supply, opening market share for natural and synthetic alternatives.

| Ticker | Company | 1-year change |
|---|---|---|
| ADM | Archer-Daniels-Midland | +25.9% |
Banning petroleum dyes forces food makers to switch to natural colorants, handing market share to Chr. Hansen and Sensient.
Who cashes in: Manufacturers of natural food colorants—including Chr. Hansen (CHR) (natural colors and ingredients), Sensient Technologies (SXT) (specialty colors and flavors), and Archer-Daniels-Midland ADM (food additives and natural ingredients)—stand to gain as food makers reformulate to replace banned dyes. Smaller natural color suppliers and startups in the clean-label space also benefit from regulatory tailwinds. Food companies will incur reformulation costs but can market products as "dye-free" or "naturally colored," a consumer-facing win.
Who's exposed: Suppliers of synthetic petroleum-based colorants face volume loss. However, most major food manufacturers have already shifted toward natural or synthetic alternatives due to consumer demand, so the regulatory impact is modest. Companies still relying on Orange B or Citrus Red No. 2 (primarily in niche products) will face reformulation costs.
What to watch next: Timeline for Citrus Red No. 2 final revocation, food company earnings calls for reformulation cost guidance, and whether other petroleum-based additives face similar scrutiny.
Source: original report ↗
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