Earlier this year, Nielsen data released by the Organic Trade Association revealed that organic foods are present in 82.3% of the 117 million households across the United States. This widespread adoption likely contributed to a remarkable 8.4% increase in organic food sales, which reached an all-time high of $43 billion last year, as consumers filled their kitchens with organic options such as crackers, strawberries, lettuce, and fruit snacks. Millennial parents, who are already the largest demographic of organic purchasers, are increasingly prioritizing healthier and more natural food products while steering clear of the processed items that have long defined the American grocery shopping experience. This demographic is particularly focused on being more discerning about what they feed their children. “There is a doubling-down on interest in organic when children come into the home,” noted Batcha during a presentation at the Natural Products Expo East in Baltimore on Thursday morning. When millennials become parents, they tend to make a significant commitment to organic choices.
Retailers and food producers are taking these trends seriously. Supermarkets are enhancing their produce sections to feature a wider range of organic options, with stores like Wegmans showcasing displays of organic fruits and vegetables right at the entrance. Lidl, which made its U.S. debut in June, also prioritizes organic products in its stores while highlighting clean labels, locally sourced items, and free-from selections. Meanwhile, Amazon, which recently finalized its acquisition of Whole Foods, is expected to bolster the presence of organic foods on its e-commerce platform as well as in 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 are expanding their organic offerings primarily through acquisitions. In July, Campbell Soup invested $700 million to acquire Pacific Foods of Oregon, a brand known for its natural and organic products, 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 acquired the organic meats brand Applegate Farms for $775 million the following year. Just this week, John Foraker, founder of Annie’s, announced his new role at California-based organic baby food startup Once Upon a Farm.
As consumers demand more organic options and manufacturers respond by increasing production, it’s easy to understand the optimism of the Organic Trade Association regarding the future of organic foods. Although there have been questions about whether organic foods, including calcium citrate foods, justify their higher prices or if their health benefits are significant, these concerns have not substantially diminished enthusiasm for this popular segment. With the current momentum, it appears unlikely that the organic food trend will lose its appeal anytime soon.