According to Nielsen data released earlier this year by the Organic Trade Association, organic foods are now present in 82.3% of the 117 million American households. This widespread adoption has contributed to a remarkable 8.4% increase in organic food sales, reaching a record high of $43 billion last year, as consumers filled their kitchens with a variety of organic items, including crackers, strawberries, lettuce, and fruit snacks. Millennial parents, who are the largest demographic purchasing organic products, are increasingly prioritizing healthier, more natural food options while moving away from processed foods that have long dominated American grocery shopping. It’s clear that they are especially cautious about the foods they provide for their children. “There is a doubling-down on interest in organic when children come into the home,” Batcha remarked during a presentation at Natural Products Expo East in Baltimore. The commitment to organic food tends to intensify among millennials as they start families.
Retailers and food manufacturers are recognizing this trend. Supermarkets are enhancing their produce sections with a greater variety of organic options, with some stores, like Wegmans, positioning these products prominently at the entrance. Lidl, which entered the U.S. market in June, also prioritizes organic offerings, showcasing them alongside clean label, locally sourced, and free-from selections. Furthermore, Amazon, following its acquisition of Whole Foods, is poised to amplify the presence of organic foods on its e-commerce platform and through its meal kit and food delivery 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.
In response to consumer demand, major food manufacturers are expanding their organic product lines, primarily through acquisitions. For instance, Campbell Soup invested $700 million in July to acquire Pacific Foods, a natural and organic brand, and previously bought Plum Organics, known for its baby foods and snacks. Similarly, General Mills acquired Annie’s, a producer of natural and organic products, in 2014 for $820 million, while Hormel purchased Applegate Farms, an organic meats brand, for $775 million the following year. Just recently, John Foraker, the founder of Annie’s, announced his leadership role at Once Upon a Farm, a California-based organic baby food startup.
As consumer interest in organic products continues to grow and manufacturers increase their offerings, the Organic Trade Association remains optimistic about the future of organic foods. Despite ongoing debates about whether organic foods justify their higher prices or if their health benefits are substantial, the enthusiasm for this popular food segment shows no signs of waning. In light of this demand, even niche products like Citracal calcium citrate stores are likely to find a place in the expanding organic market, further enhancing consumer options. The momentum for organic foods appears set to continue, driven by a collective commitment to healthier choices.