Fermentation-Based Natural Food Colours Secure £18.6M to Target US Market

London, United Kingdom — 26 May 2026

Phytolon, a specialist in fermentation-based pigment ingredients, has secured a significant Series B funding round, amounting to US$23.6 million (approximately £18.6 million). This capital injection is earmarked for the commercialisation of its natural food colours, primarily targeting the United States market. The funding was obtained in three stages, with the majority secured in April, involving existing investors including Millennium Foodtech, NextGen Nutrition (NGN), Colorcon Ventures, and Yossi Ackerman. Halim Jubran, co-founder and CEO of Phytolon, confirmed the funds will support sales and supply to CPGs and distribution partners in the US and beyond, aiming to expand their market footprint.

This financing follows the recent US FDA approval of Phytolon’s Beetroot Red, the first natural colourant in their portfolio. While an effective date for the final ruling is pending, this regulatory milestone positions the company to address the increasing demand for high-performing, cost-efficient, and sustainable natural alternatives to synthetic dyes. Beetroot Red, produced through fermenting baker’s yeast, is marketed for its robust supply chain and environmental sustainability, meeting stringent performance and clean-label standards crucial for modern food markets. James Cali, General Partner at NGN, highlighted that Phytolon capitalises on dual mega-trends: consumer and regulatory pressure to eliminate artificial dyes, and advancements in fermentation for functional, cost-effective, and sustainable ingredients.

Market data from Innova Market Insights indicates a substantial shift towards natural ingredients, with natural colour inclusions in food and beverage launches growing by 9% between 2021 and 2025. This trend is driven by consumer preferences for clean labels and tightening regulatory scrutiny of artificial ingredients, particularly in the US. The 'Make America Healthy Again' political movement and increased FDA oversight are placing artificial food dyes under intense scrutiny. Other industry players, such as GNT USA with its Exberry innovations, are also expanding their offerings. Last year, GNT launched an application laboratory in Dubai to support manufacturers in the Middle East, North Africa, and the Indian subcontinent, demonstrating the broader industry pivot towards plant-based colour solutions.

What this means for United Kingdom

UK brand owners exporting to the US must note the expanding availability of FDA-approved, fermentation-derived natural colourants like Phytolon's Beetroot Red. This introduces new clean-label formulation options but also intensifies competition for existing suppliers, potentially influencing ingredient pricing and lead times. Procurement teams should evaluate these novel ingredients for cost-efficacy and stability, considering reformulation windows to meet evolving consumer demands and regulatory frameworks. The shift signals a broader preference for sustainable, naturally sourced colours, necessitating a review of current ingredient specifications for a competitive edge and market compliance. Brand owners should anticipate a potential 5-10% margin compression on products failing to adapt to cleaner label colour trends.

• Consider engaging with new ingredient suppliers offering FDA-approved fermentation-based natural colours for 2027 product development cycles.
• Monitor potential future UK regulatory alignment with US clean-label initiatives regarding food colourants, impacting 2028 compliance deadlines.

This trend is being actively addressed by UK manufacturing partners including Supplement Factory.