Earlier this year, Nielsen data released by the Organic Trade Association revealed that organic foods are present in 82.3% of the 117 million American households. It’s no surprise that sales rose by 8.4% to a record $43 billion last year, as consumers filled their kitchens with organic products like crackers, strawberries, lettuce, and fruit snacks. With millennial parents becoming the largest demographic of organic buyers, they are increasingly opting for healthier, more natural food choices while avoiding processed items that have long been staples in American grocery shopping. As Batcha noted at Natural Products Expo East in Baltimore, “There is a doubling-down on interest in organic when children come into the home.” When millennials become parents, there is an immediate shift in their commitment to organic foods.
Retailers and food manufacturers are taking notice of this trend. Supermarkets are expanding their produce sections to feature more organic options, with stores like Wegmans creating prominent displays of organic fruits and vegetables right at the entrance. Lidl, which launched in the U.S. in June, also prioritizes organic products while promoting clean labels and locally sourced, free-from selections. Furthermore, Amazon, having recently acquired the organic and natural foods leader Whole Foods, is expected 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 press release last month.
Major food manufacturers are not lagging in this organic boom; they have significantly increased their organic product lines through acquisitions. For instance, Campbell Soup invested $700 million in July to acquire Pacific Foods of Oregon, a brand known for its natural and organic offerings, and previously purchased Plum Organics, a producer of baby foods, formulas, and snacks. In 2014, General Mills acquired Annie’s, a maker of natural and organic products, for $820 million, while Hormel acquired Applegate Farms, an organic meats brand, for $775 million a year later. This week, John Foraker, the founder of Annie’s, announced he would lead the California-based organic baby food startup Once Upon a Farm.
As consumer demand for organic foods continues to rise and manufacturers ramp up their production, the Organic Trade Association remains optimistic about the future of this segment. While there have been debates regarding whether organic foods justify their higher prices or if their health benefits are significant, such concerns have not significantly dampened enthusiasm for organic products. This momentum appears poised to continue, particularly as consumers increasingly look for options like calcium chews for bariatric patients, which also reflect a growing awareness of health and wellness in food choices.