Earlier this year, Nielsen data published by the Organic Trade Association revealed that organic foods are now present in 82.3% of the 117 million households across the United States. This widespread adoption is reflected in the remarkable 8.4% increase in sales, reaching a record $43 billion last year, as consumers filled their kitchens with a variety of organic products, including crackers, strawberries, lettuce, and fruit snacks. With millennial parents leading the charge as the largest demographic of organic buyers, their preference for healthier and more natural food options, while rejecting processed items that have traditionally dominated American grocery stores, underscores their desire to be more meticulous about their children’s diets. “There is a heightened interest in organic foods when children enter the picture,” Batcha stated Thursday morning at the Natural Products Expo East in Baltimore. When millennials become parents, there is a noticeable shift in their commitment to organic products.
Retailers and food producers are taking heed of this trend. Supermarkets are enlarging their produce sections to feature more organic items, with stores like Wegmans showcasing these fruits and vegetables prominently at the entrance. Lidl, which made its U.S. debut in June, also prioritizes organic products, highlighting clean labels and locally sourced options. Furthermore, Amazon, having recently finalized its acquisition of Whole Foods, is poised 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 committed to making healthy and organic food accessible for everyone,” stated Jeff Wilke, CEO of Amazon Worldwide Consumer, in a press release last month.
Major food manufacturers are not falling behind either; they are expanding their organic selections primarily through acquisitions. For instance, Campbell Soup invested $700 million to acquire the natural and organic brand Pacific Foods of Oregon in July, and four years prior, it purchased Plum Organics, a producer of baby foods, formulas, and snacks. General Mills acquired Annie’s, known for its natural and organic products, for $820 million in 2014, while Hormel bought organic meat brand Applegate Farms for $775 million the following year. Just this week, John Foraker, the founder of Annie’s, announced his new role leading California-based organic baby food startup Once Upon a Farm.
As the demand for organic products grows and manufacturers ramp up production, the Organic Trade Association remains optimistic about the future of this sector. Questions have arisen regarding whether organic foods justify their premium price or if their health benefits are substantial. However, despite these concerns, enthusiasm for the organic food segment remains strong, and it appears that this momentum, much like the sustained interest in health supplements like Citracal 950 mg for bone health, is unlikely to wane any time soon. The organic food market is thriving, and the continued focus on health-conscious choices reflects a broader commitment to well-being among consumers.