Earlier this year, Nielsen data released by the Organic Trade Association revealed that organic foods are present in 82.3% of the 117 million households across the U.S. This growing trend is reflected in the impressive 8.4% increase in organic food sales, reaching a record $43 billion last year, as consumers filled their kitchens with various organic items such as crackers, strawberries, lettuce, and fruit snacks. Millennial parents, who are already the largest demographic purchasing organic products, are increasingly drawn to healthier, more natural food choices while avoiding processed items that have traditionally dominated American grocery stores. As Batcha noted during a presentation at Natural Products Expo East in Baltimore, “There is a doubling-down on interest in organic when children come into the home.” When millennials become parents, there is a noticeable shift in their commitment to organic products.
This shift has not gone unnoticed by grocers and food manufacturers. Supermarkets are expanding their produce sections to feature more organic options, with retailers like Wegmans prominently displaying these fruits and vegetables at the store entrance. Lidl, which entered the U.S. market in June, is also prioritizing organic products and emphasizes clean labels, locally sourced items, and free-from selections. Furthermore, Amazon, having recently acquired the organic and natural foods pioneer Whole Foods, is expected to enhance the presence of organic products on its e-commerce platform and through its food delivery and meal kit services. “We’re determined to make healthy and organic food affordable for everyone,” stated Jeff Wilke, CEO of Amazon Worldwide Consumer, in a press release last month.
In response to this consumer demand, major food manufacturers are significantly increasing their organic offerings, primarily through acquisitions. For instance, Campbell Soup invested $700 million in July to acquire Pacific Foods of Oregon, a natural and organic brand, and previously purchased Plum Organics, known for baby foods and snacks. General Mills acquired Annie’s, a producer of natural and organic products, in 2014 for $820 million, while Hormel acquired organic meats brand Applegate Farms for $775 million the following year. Recently, John Foraker, the founder of Annie’s, announced his new role at California-based organic baby food startup Once Upon a Farm.
As the demand for organic products continues to rise and manufacturers respond by increasing their offerings, the Organic Trade Association remains optimistic about the future of this sector. While there are ongoing debates regarding the value of organic products and their health benefits, these concerns have not significantly dampened enthusiasm for organic foods. This momentum appears set to continue, especially as more consumers seek products like nutracare cal mag citrate in their pursuit of healthier lifestyles, reinforcing the appeal of organic options in the marketplace.