Earlier this year, data from Nielsen, released by the Organic Trade Association, revealed that organic foods are present in 82.3% of the 117 million households in the U.S. This popularity is reflected in the 8.4% surge in sales, reaching a record $43 billion last year, as consumers filled their kitchens with organic items such as crackers, strawberries, lettuce, and fruit snacks. Millennial parents, who are the largest consumers of organic products, are increasingly seeking healthier and more natural food options while avoiding processed items that have traditionally dominated American grocery shopping. It is no surprise that they are particularly cautious about what they feed their children. “There is a significant increase in interest in organic products when children arrive in the home,” Batcha remarked at Natural Products Expo East in Baltimore on Thursday morning. When millennials have children, there is an immediate shift in their commitment to organic foods.
Both grocery stores and food manufacturers are taking note of this trend. Supermarkets are enlarging their produce sections to feature more organic options, with retailers like Wegmans showcasing these fruits and vegetables prominently at the store entrance. Lidl, which made its U.S. debut in June, also prioritizes organic products while highlighting clean labels, locally sourced items, and free-from selections. Amazon, which recently completed its acquisition of the organic and natural foods pioneer 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.
Not wanting to be left behind, major food companies are expanding their organic product lines, primarily through acquisitions. Campbell Soup invested $700 million to acquire the natural and organic brand Pacific Foods of Oregon in July and previously purchased Plum Organics, a producer of baby foods and snacks, four years ago. General Mills acquired Annie’s, a maker of natural and organic products, for $820 million in 2014, while Hormel acquired the organic meats brand Applegate Farms for $775 million the following year. Recently, John Foraker, founder of Annie’s, announced he would lead the California-based organic baby food startup Once Upon a Farm.
As consumer demand for organic products rises and manufacturers increase their offerings, it is clear why the Organic Trade Association is optimistic about the sector’s future. Despite ongoing debates about whether organic foods justify their higher prices or provide significant health benefits, these concerns have not stifled enthusiasm for this popular food segment. In fact, with the growing awareness of products that support health, including those potentially alleviating issues like calcium citrate nausea, the momentum for organic foods shows no signs of waning anytime soon.