Phytolon commercializes fermentation-based food colors following US$23.6M raise
Key takeaways
- Phytolon secures US$23.6 million in Series B funding to commercialize its fermentation-based natural food colors in the US.
- The investment follows the US FDA approval of Phytolon’s first natural colorant, Beetroot Red, which is produced using baker’s yeast.
- Market demand for natural food dyes is rising rapidly due to clean label consumer preferences and increased regulatory scrutiny of artificial ingredients.
Phytolon, specializing in novel fermentation-based pigment ingredients, has secured US$23.6 million in Series B financing to commercialize its natural food colors in the US.
This round was led by an undisclosed strategic investor. The biotech company secured the funding during three stages. Most of it was secured in the last stage in April, which involved existing investors, including Millennium Foodtech, NextGen Nutrition (NGN), Colorcon Ventures, and Yossi Ackerman.
“This new funding will be allocated to support sales and supply to CPGs and to distribution partners in the US and beyond. I am excited to see our portfolio of strategic investors increase, enabling us to grow our business and establish our footprint in the market,” says Halim Jubran, co-founder and CEO of Phytolon.
FDA approval of Beetroot Red
The financing round follows the US FDA approval of Beetroot Red, which is Phytolon’s first natural colorant in its portfolio. The agency has not yet set an effective date for the final ruling.
With this new capital, the biotech company underlines the maturing market demand for high-performing, economic, and sustainable natural alternatives to synthetic dyes.
Beetroot Red is produced through fermenting baker’s yeast and is marketed as cost-efficient, robust in its supply, and environmentally sustainable.
Phytolon says that Beetroot Red complies with the required standards of performance and clean label that CPGs and consumers expect in the modern food markets.
“Phytolon is at the nexus of two mega-trends — consumer and regulatory demand to remove artificial dyes and advances in fermentation to offer natural ingredients with better functionality, cost, and sustainability,” says James Cali, general partner at NGN.
“With a strong network of strategic partners and recent FDA approval, Phytolon is well-positioned to capitalize on the transition toward natural dyes across food and supplements products.”
Growing appetite for natural colors
With this new capital, the biotech company underlines the maturing market demand for high-performing, economic, and sustainable natural alternatives to synthetic dyes.
Recent Innova Market Insights data highlighted that consumers are actively reducing artificial ingredients in favor of natural alternatives. Natural color inclusions in F&B launches are rising, with 9% growth between 2021 and 2025, according to the global market researcher. Bakery leads in overall usage, while soft drinks show the fastest growth in natural color adoption.
Meanwhile, the ongoing “Make America Healthy Again” political movement and tightening FDA scrutiny in the US have put artificial food dyes directly in the crosshairs of consumers and regulators.
Earlier this year at Natural Products Expo West 2026 in Anaheim, California, US, Food Ingredients First sat down with Jeannette O’Brien, VP of sales and marketing at GNT USA, to discuss the company’s latest Exberry innovations based on fruits, vegetables, and plants that produce a “full rainbow” of vibrant, consistent shades.
In December, the Netherlands-based company unveiled an application laboratory in Dubai to support manufacturers using its plant-based Exberry colors in the Middle East, North Africa, and the Indian subcontinent.
Also active in the space, California Natural Color spotlighted its expansive portfolio of natural, stable, and label-friendly colors derived from a range of plant-based sources at ISM 2026 in Cologne, Germany.
