ADM has announced it is investing more than $16m to expand naturally derived colour production at its Boone County facility in Northern Kentucky, US, which would add 14,000 square feet of manufacturing space and new production capabilities.
The expansion — which is due to be complete by early 2027 — will increase capacity for liquid and dry-blended colour solutions within ADM’s Colors From Nature portfolio.
ADM said the investment is in response to growing demand from food and beverage (F&B) manufacturers reformulating products in response to changing consumer preferences and regulatory expectations.
The company estimates the North American colour conversion opportunity at more than $1bn.
The investment follows on from a further $26m expansion at ADM’s neighbouring Erlanger facility, highlighting the company’s broader push to strengthen its North American manufacturing footprint.
ADM employs more than 1300 people across the Northern Kentucky region, having established its presence there through the 2014 acquisition of WILD Flavors.
Regulatory pressure accelerates colour reformulation
The Kentucky expansion comes as the US regulatory environment around synthetic food colours continues to shift.
In July, the US FDA revoked the authorised use of Orange B as a food colour and proposed revoking the authorisation for Citrus Red No. 2, citing the latter’s apparent abandonment by industry.
The measures form part of the FDA's wider initiative to phase out petroleum-based synthetic dyes from the US food supply.
These regulatory changes are occurring alongside voluntary reformulation programmes from major food manufacturers.
For example, General Mills has committed to removing certified colours from its entire US retail portfolio by the end of 2027, while Kraft Heinz is pursuing the removal of FD&C colours from its US portfolio within the same timeframe.
Nestlé has gone further, announcing plans to remove artificial food colourings from its global product portfolio by the end of 2026 — but the company also highlighted the technical challenge of identifying natural alternatives that can deliver the required colour, stability and shelf life.
Where the opportunity lies
For ingredient suppliers such as ADM, the shift creates opportunities but also formulation challenges.
Natural colours can behave differently from synthetic dyes across aspects such as processing conditions, pH and shelf life, increasing the importance of formulation expertise alongside reliable manufacturing capacity.
ADM said its combination of global raw material sourcing, local manufacturing and formulation capabilities is intended to help customers manage these challenges from ingredient selection through scale-up and commercialisation.
The latest investment therefore positions Northern Kentucky as an increasingly important manufacturing hub for ADM’s natural colour business as F&B manufacturers accelerate the transition away from synthetic colour systems.
