For decades, high-fructose corn syrup (HFCS) has been a go-to sweetener for American soft drink makers. Now, pure cane sugar is drawing renewed attention as brands rethink ingredients and consumers pay closer attention to what’s on a label.

As the U.S. Food and Drug Administration (FDA) phases out certain petroleum-based food dyes, functional ingredients that were once considered a niche category are projected to become a $372.43 billion market by 2034, reshaping ingredient labels nationwide.

Mike Ford has spent four decades in beverage and dairy manufacturing, including vice president and plant director roles with Coca-Cola and Danone. Today, he serves as a Haskell Strategic Industry Advisor, helping manufacturers understand what ingredient changes mean for production, infrastructure and long-term planning.

“Manufacturers should know that reformulation challenges them on two fronts,” Ford said. “When it comes to their operations, they need to consider supply, storage, processing, quality control and long-term flexibility. When it comes to their consumers, they have to understand what customers are willing to pay for and look ahead to the bigger picture. What will my clients be looking for tomorrow in grocery store aisles?”

Why are ingredient changes accelerating?

Consumer preferences have been moving toward recognizable ingredients for years, and regulatory activity is adding momentum.

The FDA revoked approval of FD&C Red No. 3 effective January 2027, and federal agencies are working to phase out six additional synthetic dyes by the end of 2026.

Many food and beverage companies are making changes ahead of those deadlines. As ingredient awareness grows, clean labels may become less of a differentiator and more of an expectation.

“You don’t want to get caught up reacting to the changes,” Ford said. “The question is, are companies planning their future accordingly? Are they lowering operating costs and innovating their ingredients ahead of the curve? Or will they only react when they have to, by law? The latter brings unpredictable costs and puts your business in an emergency state. Nobody wants that.”

Cane sugar production is limited domestically. After Texas ceased milling in 2024 to preserve strained water reserves, Florida and Louisiana remain the only meaningful producers in the U.S. Both states are vulnerable to hurricanes, meaning a severe season can create localized supply disruptions.

Companies that commit to local ingredients can support local economies, but that can add pressure to an already limited supply base. Imports are an option, but manufacturers may face tariffs ranging from 10% to 46% under tariff-rate quotas.

“Overall availability is no guarantee,” Ford said.

Cane sugar also requires different handling. HFCS arrives as a liquid, ready for use. Cane sugar requires dissolving tanks, mixing equipment and filtration systems before it enters production. Ingredient preservation can require purpose-built solutions, from silos to climate-controlled storage.

“The other component I see manufacturers underestimating is cost,” Ford said. “Pure cane sugar is pricey to get and pricey to handle. If you’re not planning on a way to absorb that cost, it can fall on consumers, whose backlash could potentially break the bank.”

Natural colors raise pricing and handling concerns

Natural colors and flavors behave differently than synthetic alternatives. Artificial dyes and flavors are highly concentrated, chemically stable and manufactured at industrial scale. Natural alternatives, including beet, turmeric, carrot concentrates and fruit-based colorants, may require higher concentrations. These ingredients can cost two to five times as much as artificial options.

The complexity doesn’t end after procurement. Poor storage or processing conditions can affect product quality and shorten shelf life. Blue and green shades are particularly difficult, with newer options like butterfly pea flower and spirulina still presenting stability challenges at scale.

To preserve these ingredients, manufacturers may need to adjust processing temperatures, invest in new storage or lengthen production time by adding quality-control steps.

“These are the kinds of considerations manufacturers are surprised by when they react too late,” Ford said. “But that’s what Haskell does: We anticipate constraints and plan for them. When we hand you the keys to your new facility, it comes equipped with an adaptable plan for success.”

Haskell’s strategic industry advisors help optimize operations for change

Switching to natural ingredients involves both supply chain constraints and infrastructure demands. Any facility upgrade requires capital, and manufacturers have to determine how best to invest. To that end, Haskell’s strategic industry advisors and systems analysts evaluate operations from end to end. They look at metrics such as Overall Equipment Effectiveness (OEE), labor utilization, material movement and production bottlenecks to identify potential savings.

Ford recalled a Danone project where his team identified an opportunity to automate forklift operations.

“They hadn’t considered automating their forklift operations,” Ford said. “We drew up the report, identified the equipment they needed and ran numbers for comparison. It was clear: Automating their forklifts not only reduced labor costs and demands but also improved safety on the floor. Changes like these not only lower day-to-day operating costs but also free up resources that manufacturers can reinvest into quality ingredients.”

The path forward is flexible manufacturing

Cane sugar may or may not become the dominant sweetener in American beverages. Natural color legislation may tighten further or stabilize. Consumer preferences will continue to shift in hard-to-predict ways. Each possibility reinforces the need for manufacturing operations that can adapt.

Haskell helps beverage manufacturers evaluate their facilities, optimize operations and build the infrastructure needed to meet market demand. The challenge is less about prediction and more about preparedness.

Build greater flexibility into your beverage manufacturing operations with Haskell’s integrated design, construction and consulting expertise. Contact us to learn more.