Earlier this year, Nielsen data released by the Organic Trade Association revealed that organic foods are now present in 82.3% of the 117 million households across the United States. This growing trend is reflected in a remarkable 8.4% increase in sales, reaching an all-time high of $43 billion last year, as consumers filled their kitchens with organic products, ranging from crackers and strawberries to lettuce and fruit snacks. Millennial parents, who are the largest consumers of organic foods, are increasingly turning to healthier, more natural options while avoiding processed items that have long been a staple in American grocery shopping. Their desire to be more mindful of what they feed their children is evident. “There is a doubling-down on interest in organic when children enter the home,” Batcha stated on Thursday at the Natural Products Expo East in Baltimore. He noted that when millennials have children, there is a notable shift in their commitment to organic products.
Retailers and food manufacturers are also responding to this trend. Supermarkets are expanding their produce sections to feature a wider variety of organic options. For instance, Wegmans has prominently displayed organic fruits and vegetables right at the store entrance. Lidl, which made its U.S. debut in June, is similarly prioritizing organic goods, highlighting clean labels and locally sourced items. Amazon, having recently completed its acquisition of Whole Foods, is anticipated 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 an effort to keep pace, major food manufacturers have increased their organic offerings, primarily through acquisitions. For example, Campbell Soup invested $700 million in July to acquire Pacific Foods of Oregon, a natural and organic brand, and previously purchased Plum Organics, which specializes in baby foods, formulas, and snacks. General Mills acquired Annie’s, a producer of natural and organic products, for $820 million in 2014, while Hormel purchased organic meat brand Applegate Farms for $775 million the following year. Recently, John Foraker, founder of Annie’s, announced his new role leading the California-based organic baby food startup Once Upon a Farm.
As consumer demand for organic products continues to rise and manufacturers increase their production, the Organic Trade Association remains optimistic about the future of this segment. While some questions linger regarding the value of organic foods and their health benefits, this skepticism has done little to dampen enthusiasm. The momentum for organic products, including those rich in cissus quadrangularis and calcium citrate, shows no signs of slowing down anytime soon. As the market evolves, it is clear that the preference for organic options will only grow stronger, reinforcing the importance of incorporating nutritious ingredients into everyday diets.