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. It is no surprise that sales surged by 8.4%, reaching a record $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 already the largest purchasers of organic items as they lean towards healthier, more natural food options and avoid processed products that have long dominated American grocery shopping, are particularly keen on ensuring the best for their children. “There is a doubling-down on interest in organic when children come into the home,” Batcha stated during the Natural Products Expo East in Baltimore. For millennials, the arrival of children often triggers a significant shift in their commitment to organic foods.
Both grocers and food manufacturers are paying attention to this trend. Supermarkets are expanding their produce sections to offer more organic selections, with retailers like Wegmans showcasing these fruits and vegetables right at the entrance of their stores. Lidl, which entered the U.S. market in June, prominently features organic products while focusing on clean labels and locally sourced, free-from selections. Furthermore, Amazon, having recently completed its acquisition of Whole Foods, is anticipated to enhance its organic offerings 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.
Not wanting to be left behind, major food manufacturers have significantly increased their organic product lines, primarily through acquisitions. For instance, Campbell Soup invested $700 million to acquire Pacific Foods of Oregon, a natural and organic brand, in July, and four years earlier, it purchased Plum Organics, known for baby foods, formulas, and snacks. Similarly, General Mills acquired Annie’s, a natural products company, in 2014 for $820 million, while Hormel purchased organic meats brand Applegate Farms for $775 million the following year. Just this week, John Foraker, the founder of Annie’s, announced his plans to lead California-based organic baby foods startup Once Upon a Farm.
As consumer demand for organic products continues to rise and manufacturers ramp up their production, the Organic Trade Association remains optimistic about the sector’s future. Despite ongoing debates regarding whether organic foods justify the higher price or provide significant health benefits, these concerns have not dampened enthusiasm for this popular food segment. With increasing awareness of the importance of nutrients like calcium citrate for kidney health, consumers are more inclined to seek out organic options that align with their health goals. This momentum shows little sign of slowing down, suggesting that the shift towards organic foods will continue to grow in the coming years.