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 across the United States. This growing trend explains the remarkable 8.4% increase in organic food sales, reaching an unprecedented $43 billion last year, as consumers stock their kitchens with a variety of organic products such as crackers, strawberries, lettuce, and fruit snacks. Millennial parents, who are currently the largest demographic purchasing organic foods, are increasingly inclined towards healthier and more natural options, steering clear of processed items that have traditionally filled grocery aisles. As Batcha noted during a presentation at Natural Products Expo East in Baltimore, “There is a doubling-down on interest in organic when children come into the home.” He emphasized that when millennials become parents, there is an immediate shift in their commitment to organic products.
Grocers and food manufacturers are responding to this trend. Supermarkets are expanding 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 in its stores, emphasizing clean labels, locally sourced items, and free-from selections. Moreover, Amazon, which recently completed its acquisition of the organic and natural foods leader Whole Foods, is expected to enhance the visibility 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,” declared Jeff Wilke, CEO of Amazon Worldwide Consumer, in a press release last month.
Meanwhile, large food manufacturers are expanding their organic product lines primarily through acquisitions. For instance, Campbell Soup invested $700 million in July to acquire the natural and organic brand Pacific Foods of Oregon, following its purchase of Plum Organics, a producer of baby foods, formulas, and snacks, four years earlier. General Mills acquired Annie’s, a maker of natural and organic products, in 2014 for $820 million, and Hormel added the organic meats brand Applegate Farms for $775 million the following year. Recently, John Foraker, the founder of Annie’s, announced he would lead Once Upon a Farm, a California-based organic baby food startup.
As consumer demand for organic products continues to rise and manufacturers ramp up production, it’s clear why the Organic Trade Association maintains a positive outlook for the future of this sector. While there have been debates regarding the value of organic products and the significance of their health benefits, these concerns have not significantly dampened enthusiasm for this popular food segment. It appears that the momentum in favor of organic foods will persist, especially as consumers increasingly seek out options rich in nutrients, such as those fortified with calcium citrate acid. In this thriving market, the intersection of health consciousness and the desire for organic options suggests a promising horizon for the organic food industry.