They’re only banning specific chemicals, not all food coloring. For example:

Red Dye No. 3, officially known as erythrosine or FD&C Red No. 3, is a synthetic dye derived mainly from petroleum. In the U.S., Red 3 has been banned for decades in makeup and topical medicines after being linked to cancer.

Red No. 2 was federally banned in the 70s. The industry adapts and moves on.