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% rise in sales, reaching a historic $43 billion last year, as consumers filled their kitchens with organic options like crackers, strawberries, lettuce, and fruit snacks. Millennial parents, who are already the largest consumers of organic products, are increasingly turning to healthier and more natural food choices, while avoiding processed items that have long been a staple in American grocery shopping. As Batcha noted at the Natural Products Expo East in Baltimore, “There is a doubling-down on interest in organic when children come into the home.” He emphasized that when millennials have children, they tend to significantly shift their commitment to organic products.
Retailers and food manufacturers are keenly aware of this trend. Supermarkets are enhancing their produce sections with more organic selections, and some, like Wegmans, are placing these fruits and vegetables prominently at the entrance. Lidl, which entered the U.S. market in June, also prioritizes organic products while highlighting clean labels and locally sourced items. Additionally, Amazon, after acquiring the organic and natural foods leader Whole Foods, is expected to amplify the presence of organic items 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.
Big food producers are also expanding their organic lines, primarily through acquisitions. For instance, Campbell Soup invested $700 million in July to acquire Pacific Foods, a natural and organic brand, and previously purchased Plum Organics, a producer of baby foods, formulas, and snacks. General Mills acquired Annie’s, a maker of natural and organic products, for $820 million in 2014, while Hormel acquired organic meats brand Applegate Farms for $775 million the following year. Recently, John Foraker, founder of Annie’s, announced he would lead the California-based organic baby food startup Once Upon a Farm.
As consumer demand for organic products grows and manufacturers respond by increasing their offerings, the Organic Trade Association remains optimistic about the sector’s future. Questions have been raised about whether organic is worth the higher price or if its health benefits are substantial, similar to inquiries about whether calcium citrate causes gas. However, such concerns have not significantly dampened enthusiasm for this popular food category, and it appears that the momentum behind organic foods will continue for the foreseeable future.