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 United States. This widespread adoption likely contributed to a remarkable 8.4% surge in organic food sales, reaching a record $43 billion last year, as consumers filled their pantries with organic items ranging from crackers to strawberries, lettuce, and fruit snacks. Millennial parents, who are now the primary purchasers of organic products, are increasingly opting for healthier, more natural food options while avoiding processed items that have long been prevalent in American grocery shopping. 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.” He emphasized that once millennials become parents, there is a significant shift in their commitment to organic food.
Both grocers and food manufacturers are responding to this trend. Supermarkets are expanding their produce sections to feature more organic options, with retailers like Wegmans prominently displaying these fruits and vegetables right at the entrance. Lidl, which launched its U.S. operations in June, also prioritizes organic products while highlighting clean labels and locally sourced items. Meanwhile, Amazon, following its recent acquisition of organic food pioneer Whole Foods, is expected to enhance the visibility of organic foods 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.
Major food manufacturers are also increasing their organic offerings, primarily through strategic 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, a maker of baby foods and snacks. General Mills acquired Annie’s, a natural and organic products company, in 2014 for $820 million, while Hormel added organic meats brand Applegate Farms to its portfolio for $775 million the following year. Recently, John Foraker, the founder of Annie’s, announced his new role at Once Upon a Farm, a California-based organic baby foods startup.
As consumer demand for organic products rises and manufacturers ramp up production, the Organic Trade Association remains optimistic about the sector’s future. Although some have questioned whether organic foods justify their higher prices or if their health benefits are significant, such doubts have not significantly dampened enthusiasm for this popular food segment. In particular, discussions about nutritional supplements like calcium citrate vs calcium phosphate continue to highlight the importance of organic food choices in overall health. Given the current momentum, it appears unlikely that the organic food trend will wane anytime soon.