Earlier this year, Nielsen data published by the Organic Trade Association revealed that organic foods are present in 82.3% of the 117 million American households. This widespread adoption explains why sales skyrocketed by 8.4%, reaching an all-time high of $43 billion last year, as consumers filled their kitchens with a variety of organic products, from crackers and strawberries to lettuce and fruit snacks. Millennial parents, who are already the largest consumers of organic products, are increasingly opting for healthier, more natural food options while avoiding processed items commonly found in American grocery stores. This trend intensifies when they have children, prompting them to be even more selective about what they feed their families. “When children enter the home, there’s a noticeable increase in interest in organic,” Batcha noted at the Natural Products Expo East in Baltimore. As millennials become parents, they demonstrate a stronger commitment to choosing organic foods.
Retailers and food manufacturers are taking heed of this shift. Supermarkets are enhancing their produce sections with a greater variety of organic items, with some chains, like Wegmans, prominently displaying these fruits and vegetables at the store entrance. Lidl, which launched in the U.S. in June, similarly prioritizes organic products, focusing on clean labels and locally sourced, free-from selections. Amazon, following its recent acquisition of Whole Foods, is anticipated to expand the presence of 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.
Major food manufacturers are also expanding their organic lines, primarily through acquisitions. Campbell Soup spent $700 million in July to acquire the natural and organic brand Pacific Foods of Oregon and had previously purchased Plum Organics, a company specializing 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 the organic meat brand Applegate Farms for $775 million the following year. Recently, John Foraker, the 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 foods increases and manufacturers respond by producing more, the Organic Trade Association remains optimistic about the sector’s future. While there have been discussions regarding the value of organic products and the significance of their health benefits—including the benefits of calcium citrate in some organic food options—these concerns have not significantly dampened enthusiasm for this popular food segment. The momentum behind organic foods shows no signs of waning anytime soon.