Supply Chain Security for Natural Colors
Major Market Movements Prompt Increased Urgency in Conversion Conversations
Conversations around conversion from synthetic ingredients to their natural alternatives have been happening (and making headlines) for over a decade. Naturalness has been a trend every year in some form, and rather than slowing down it is now picking up pace.
In addition to ongoing consumer pressure, several key regulatory actions have made a series of undeniable splashes in the food and beverage industry:
At least a dozen U.S. states have introduced legislation targeting titanium dioxide, Red 3, or other synthetic colors. The FDA continues to face pressure to review approval for other synthetic colors as well.
With this mounting wave of restrictions—either perceived or enforced—many brands are preparing to make a major shift away
from synthetic colors.
How can I prepare my business for a conversion project?
Conversion from synthetic colors to natural is more complex than a quick one-to-one swap. Many factors will influence the selection of the right natural color for each project, from processing to cost targets to shade preference to regional permissibility, and our technical team is ready to assist in that process.
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Besides the development aspect, there are other factors for your business to consider and prepare to address:
Natural color supply chain security
Storage and processing requirements for natural colors
Growing cycles and long-term supply
We’re here to be your color partner throughout this transition.
The Important Role of Forecasting in the Natural Color Supply Chain
We recognize the importance of supply chain security in ensuring uninterrupted operations for our customers.
Accurate forecasting plays a critical role in managing a natural color supply chain. Unlike synthetic alternatives, natural color raw materials are subject to agricultural variables like weather, seasonality, and regional crop yields.
With reliable forecasts, we can:
- Plan planting schedules and sourcing strategies to align with demand
- Minimize lead times and ensure product availability
- Reduce waste and manage costs effectively
By working closely with our customers on forecast accuracy, we create a more predictable and responsive supply chain that meets your needs while maintaining sustainability.
Learn more about our global sustainability efforts in our annual report.
How does Sensient Colors ensure supply chain security?
We recognize the importance of supply chain security in ensuring uninterrupted operations for our customers.
Partnership agreements like long-term contracts, custom forecasting models, and flexible stock and sourcing strategies help us provide confidence in natural color supply.
This allows our customers to focus on their core operations, knowing we have a reliable and secure supply chain designed to support their business needs.
The Impact of Vertical Integration on Customer Experience
Sensient’s Seed-to-Shelf Agronomy program looks to expand the growing regions for natural colors, creating opportunities for multi-hemisphere growing.
Our level of vertical integration for each potential botanical is based on where we see risk and value for individual natural colors.
This vertical integration—from sourcing raw materials to producing finished natural colors—offers customers significant benefits:
- End-to-End Traceability: Customers gain confidence knowing where and how their products are made.
- Consistency and Quality Control: In-house processing ensures rigorous quality standards at every stage.
- Flexibility and Innovation: Direct control over raw materials allows us to adapt quickly to customer requirements and industry trends.
Vertical integration enhances supply reliability and enables us to partner with customers on tailored solutions for their unique challenges.
Ensuring a Stable Supply Chain for Our Customers
Stability and reliability in our supply chain is a cornerstone of our operations. We achieve this through:
Risk Management
Continuous monitoring of geopolitical, climatic, and market risks.
Strategic Sourcing
Partnering with diverse suppliers to reduce dependency on any single source.
Global Footprint
Keeping customers informed about potential disruptions and recovery plans.
Proactive Communication
Keeping customers informed about potential disruptions and recovery plans.
Ownership of Warehousing Operations
We own and operate our own warehouses which include both ambient and cold storage facilities, ensuring full control over inventory storage, handling, and shipping processes.
Global Manufacturing Network
With multiple manufacturing sites strategically located worldwide, we offer flexibility and redundancy to meet customer demands and ensure uninterrupted high-quality supply, even in the face of regional disruptions.
Our commitment is to ensure that our customers experience minimal disruptions, even in a volatile global environment.
Collaboration Between Technical and Procurement Supports Stable Supply
In addition to our strategic operational tenets, our technical team collaborates with customers to address specific challenges, from customized formulations to production-focused analytical support to guidance on storage and handling to maximize shelf life and product quality.
By combining technical expertise with supply chain strategies, we deliver integrated solutions that drive efficiency and value.
Our technical teams also work directly with our supply chain team to validate multiple sources for raw materials, giving Sensient an improved ability to respond to short-notice requests. The global nature of our product development and manufacturing capabilities allows us to have redundant capacity as well as shorter lead times, where appropriate, through cross-region collaboration and technology transfer.
Through collaborative technical development with our customers, our color experts are often able to not just match an existing solution, but to look for improved performance or reduced cost. Unparalleled access to technologies and manufacturing capabilities like drying, blending, emulsions, and particle size control enable improved usage rates or enhanced stability in a variety of processing conditions.
Let’s Unleash the Rainbow—Together
We understand that customer success is our success. Amidst a tumultuous regulatory environment and pressing consumer demands, Sensient is ready to help you unleash the power of color however best fits your needs.
