When the Colour Fades: What Thai Tea’s Colour Crisis Teaches Us About Food Laws and Demand in F&B

What happens when an icon loses its colour?

That’s the dilemma Thai tea is facing in 2025. Once instantly recognisable for its rich, almost neon orange hue, the classic drink is being stripped of its signature look as Thai authorities crack down on artificial food colourings; particularly the controversial dye FD&C Yellow No. 6. The result? A drink that tastes the same but looks completely different.

Sunset Yellow, the food dye responsible for Thai tea’s distinctive orange hue, has been banned in the UK and parts of Europe over health concerns, with studies linking it to increased hyperactivity in children. This is particularly relevant to the Australian F&B market, where global cuisine, especially vibrant and visually appealing beverages, continues to grow in popularity. As a result, awareness of international ingredient regulations can help businesses anticipate consumer concerns, adapt menus responsibly, and maintain trust in an increasingly health-conscious dining landscape.

For everyday consumers, this might be a quirky detail. For food and beverage (F&B) operators? It’s a sales-altering curveball. Here’s why.

Regulations Are Changing the Recipe… And the Revenue

The Bangkok Post recently reported that Thai food vendors and beverage producers are scrambling to reformulate their beloved Thai tea recipes to comply with new health and safety standards. The decision to limit artificial colourings is a response to growing health consciousness and pressure from both domestic and international markets.

For beverage distributors, cafes, and restaurant groups, this is a potent reminder: food laws don’t just affect compliance—they directly shape customer expectations and demand.

Visual appeal is a huge part of what sells a product in F&B. If a beloved product no longer looks like what customers expect, it can tank sales, confuse loyal patrons, and require a complete rethink of marketing strategies.

Shifting Consumer Tastes: Natural Colouring, Same Love

In response to consumer concerns about artificial colouring, several major Thai drink brands have recently launched Thai tea products featuring natural colouring alternatives.

The move away from artificial colouring shows how Thai consumers are becoming more health-conscious while still holding onto their beloved tea culture.

This shift reflects a broader trend in F&B: today’s consumers want transparency, cleaner labels, and ingredients they can trust, without sacrificing flavour or nostalgia. Distributors and manufacturers who respond quickly to these evolving preferences can turn regulatory changes into competitive advantages.

Want proof? Early adopters of naturally coloured Thai tea blends are already seeing renewed interest from younger, wellness-savvy consumers who are eager to try products that align with both their taste and their values.

When Aesthetic Is Part of the SKU

In F&B, products like Thai tea don’t just sit in the fridge; they move through distributors, suppliers, menus, and customer Instagram feeds. And when the visual identity of a product shifts overnight, every part of that chain is affected:

• Distributors may field complaints about “wrong” or “fake” products

• Suppliers might face sudden reformulation challenges

• Sales teams have to educate customers faster than the rumour mill spreads

• Operators must answer the million-dollar question: Why doesn't it look the same anymore?

This isn’t just about tea. It’s about a broader reality: F&B businesses must stay agile in the face of regulatory and cultural change.

The Forecasting Angle: Predicting the Ripple Effect

At FOBOH, we help F&B distributors and manufacturers streamline and future-proof their operations, especially when change is brewing. The Thai tea situation underscores the importance of:

• Proactive demand forecasting: What happens to sales when an ingredient gets banned? AI-powered forecasting helps model these hypotheticals before they happen.

• Product-level data tracking: Keeping tabs on which SKUs are affected by regulation helps you act fast and communicate clearly.

• Sales enablement tools: When your team is empowered with the why behind a change, they can sell with confidence — even when products look different.

So What Should F&B Leaders Do?

This Thai tea story is a call to action. Here’s how savvy operators and distributors can stay ahead:

• Monitor regulation trends, especially those tied to ingredients or additives

• Diversify your catalogue so no single product or aesthetic defines a category

• Educate your sales team so they can respond quickly and with credibility

• Adopt new tech! Flexible AI systems like FOBOH forecast and respond to demand in real time

The Takeaway

The colour may be fading from Thai tea… but the lesson is bright as ever.

Whether you’re slinging sweet tea in Bangkok or distributing beverages across Australia, staying on top of legal, cultural, and health-driven changes is mission-critical. With the right tools, F&B businesses can move fast, keep customers informed, and stay resilient, no matter what’s changing in the cup.

Ready to future-proof your F&B sales operations? Let’s talk.

Reach out to the FOBOH team to learn how our AI agent workforce can help you adapt faster, forecast smarter, and never get caught off guard again.