According to Nielsen data released earlier this year by the Organic Trade Association, organic foods are present in 82.3% of the 117 million households in the U.S. This widespread adoption has contributed to a remarkable 8.4% increase 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 already the largest demographic purchasing organic products, are increasingly opting for healthier and more natural food choices while rejecting processed foods that have long been prevalent in American grocery shopping. As Batcha highlighted at Natural Products Expo East in Baltimore, “There is a doubling-down on interest in organic when children come into the home.” The commitment to organic products intensifies for millennials once they have children.
Both grocery stores and food manufacturers are responding to this trend. Supermarkets are expanding their produce sections to offer a wider variety of organic options, with retailers like Wegmans showcasing these fruits and vegetables prominently as customers enter the store. Lidl, which entered the U.S. market in June, also prioritizes organic products while emphasizing clean labels, locally sourced items, and selections that are free from certain ingredients. Additionally, Amazon, following its acquisition of Whole Foods, is expected to enhance the visibility of organic offerings on its e-commerce platform, as well as 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 increasing their organic product lines, mainly through acquisitions. For instance, Campbell Soup invested $700 million in July to buy Pacific Foods, a natural and organic brand from Oregon, and previously acquired Plum Organics, a producer of baby foods and snacks. General Mills purchased Annie’s, a maker of natural and organic products, for $820 million in 2014, while Hormel acquired organic meat brand Applegate Farms for $775 million the following year. Recently, John Foraker, the founder of Annie’s, announced that he would lead California-based organic baby food startup Once Upon a Farm.
As consumer demand for organic products continues to rise and manufacturers ramp up their production, the Organic Trade Association remains optimistic about the future of this sector. Despite ongoing questions regarding whether organic foods justify their higher prices or if their health benefits are significant, the enthusiasm for organic products remains strong. Notably, many consumers are also looking for supplements like calcitrate 200 mg and calcitrate 950 mg to support their health alongside their organic choices. Given the current trends, it seems unlikely that this momentum in the organic food segment will wane anytime soon.