Earlier this year, Nielsen data released 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 has contributed to a remarkable 8.4% increase in sales, reaching an all-time high of $43 billion last year, as consumers filled their kitchens with organic products like crackers, strawberries, lettuce, and fruit snacks. Millennial parents, who are already the largest demographic purchasing organic items, are increasingly prioritizing healthier and more natural food options, steering clear of processed products that have traditionally dominated American grocery shelves. It’s no surprise that these parents are particularly cautious about what they feed their children. Batcha noted during a presentation at the Natural Products Expo East in Baltimore that “there is a doubling-down on interest in organic when children come into the home.” He emphasized that once millennials become parents, they often make a stronger commitment to organic foods.
Retailers and food manufacturers have taken notice of this trend. Supermarkets are expanding their produce departments to feature a wider array of organic options, with some chains like Wegmans showcasing these items right at the entrance. Lidl, which made its U.S. debut in June, is also positioning organic products as a centerpiece in its stores while highlighting clean labels and locally sourced, free-from selections. Additionally, Amazon, which recently finalized its acquisition of the organic and natural foods pioneer Whole Foods, is poised to enhance the visibility of organic items 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,” stated Jeff Wilke, CEO of Amazon Worldwide Consumer, in a recent press release.
Not wanting to miss out, major food manufacturers have expanded 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 from Oregon, 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 purchased Applegate Farms, an organic meats brand, for $775 million the following year. Recently, John Foraker, the founder of Annie’s, announced his new role leading Once Upon a Farm, a California-based organic baby food startup.
As consumers increasingly seek organic products and manufacturers ramp up production, it’s clear why the Organic Trade Association holds a positive outlook for the sector’s future. Although there have been debates about the value of organic foods and whether their health benefits, such as the presence of vitamin citrate, are significant, these concerns have not dampened enthusiasm for this thriving food category. The momentum for organic foods, fortified by consumer demand, shows no signs of slowing, suggesting a continued rise in interest and availability in the coming years.