Earlier this year, data from Nielsen, 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 popularity contributed to a remarkable 8.4% increase in sales, reaching a record $43 billion last year, as consumers stocked up on a variety of organic items like crackers, strawberries, lettuce, and fruit snacks. Millennial parents have become the largest demographic of organic food purchasers, favoring healthier, more natural products while avoiding processed foods that have traditionally filled American grocery carts. As Batcha noted during the Natural Products Expo East in Baltimore, “There is a doubling-down on interest in organic when children come into the home.” He explained that the arrival of children prompts millennials to intensify their commitment to organic foods.
Both grocers and food manufacturers are adapting to this trend. Supermarkets are enhancing their produce sections with a greater selection of organic items. Retailers such as Wegmans have even arranged displays of fruits and vegetables at the entrance of their stores. Similarly, Lidl, which made its U.S. debut in June, prominently features organic products while highlighting clean labels, locally sourced options, and free-from selections. Amazon, having recently finalized its acquisition of the organic and natural food pioneer Whole Foods, is set to increase the visibility of organic offerings on its e-commerce platform as well as 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 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, following its earlier purchase of Plum Organics, a maker of baby foods and snacks. General Mills acquired Annie’s, a producer of natural and organic products, for $820 million in 2014, while Hormel bought organic meats brand Applegate Farms for $775 million the following year. This week, John Foraker, the founder of Annie’s, announced his leadership role at 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 future of this sector. While questions linger regarding whether organic foods justify their higher prices and if their health benefits are substantial, these concerns have not significantly dampened enthusiasm for this thriving food segment. With the ongoing focus on health and natural ingredients, including calcium citrate rugby options, it appears that the momentum for organic foods is set to continue unabated in the foreseeable future.