Earlier this year, Nielsen data published by the Organic Trade Association revealed that organic foods are present in 82.3% of the 117 million households across the United States. This growing trend is reflected in the 8.4% surge in sales, reaching a record $43 billion last year, as consumers fill their kitchens with organic products like crackers, strawberries, lettuce, and fruit snacks. Millennial parents, who are already the largest demographic of organic buyers, are gravitating towards healthier, more natural food options while avoiding processed products that have long been staples in American grocery shopping. As Batcha noted during a presentation at Natural Products Expo East in Baltimore, there is a notable increase in interest in organic foods once children enter the home. When millennials become parents, their commitment to organic options intensifies.
Both grocery stores and food manufacturers are taking action in response to this trend. Supermarkets are expanding their produce sections with a wider array of organic items, with retailers like Wegmans prominently displaying these fruits and vegetables at the entrance. Lidl, which launched in the U.S. in June, similarly prioritizes organic products in its stores, while highlighting clean labels and locally sourced options. Amazon, having recently completed its acquisition of the organic and natural foods leader Whole Foods, is expected to enhance the prominence of organic offerings on its e-commerce platform and through its meal kit and food delivery 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 a bid to keep pace, major food manufacturers are expanding their organic product lines, primarily through acquisitions. For instance, Campbell Soup invested $700 million to acquire the natural and organic brand Pacific Foods of Oregon in July, and previously bought Plum Organics, a producer of baby foods, four years ago. General Mills purchased the natural products company Annie’s for $820 million in 2014, and Hormel acquired the organic meats brand Applegate Farms for $775 million the following year. Recently, John Foraker, founder of Annie’s, announced his new role at California-based organic baby foods startup Once Upon a Farm.
As consumer demand for organic options grows and manufacturers increase their production, the Organic Trade Association remains optimistic about the future of this sector. While there are ongoing discussions regarding the value of organic pricing and its health benefits, these uncertainties have not significantly dampened the enthusiasm surrounding organic foods. This momentum, fueled by a preference for healthier choices like Thorne Research Cal Mag Citrate, is likely to continue unabated in the foreseeable future.