I like the idea in principal but I feel like this is a sort of specific function, to be coloring the entire item name.
If I could expand upon it, perhaps there could be smaller indicators - an ‘M’ (for materials) and a ‘T’ (for tools) that change colors, somewhere on the crafting menu, to reflect whether or not you have have the materials or tools. Grey if you’re missing multiple parts, yellow if you’re just missing one, and green if you have everything.
So a green M (or I) and a yellow T means you have all the ingredients but are missing a necessary tool, and so on.