Earlier this year, data from Nielsen, released by the Organic Trade Association, revealed that organic foods are present in 82.3% of the 117 million households across the United States. This widespread acceptance is reflected in a remarkable 8.4% surge in sales, reaching an all-time high of $43 billion last year, as consumers filled their kitchens with organic products, ranging from crackers and strawberries to lettuce and fruit snacks. Millennial parents, already the largest demographic purchasing organic items, are prioritizing healthier, more natural food options while avoiding processed products that have traditionally dominated American grocery shopping. It’s no surprise that these parents are particularly cautious about the nutritional quality of the food they provide to their children. “There is a doubling-down on interest in organic when children come into the home,” noted Batcha during a presentation at the Natural Products Expo East in Baltimore. As millennials start families, there is an immediate shift in their commitment to organic foods.
Both grocers and food manufacturers are recognizing this trend. Supermarkets are enhancing their produce sections by incorporating more organic options, with retailers like Wegmans strategically placing organic fruits and vegetables at the entrance of their stores. Lidl, which entered the U.S. market in June, is also prioritizing organic products while promoting clean labels, locally sourced items, and free-from selections. Furthermore, Amazon, which recently finalized its acquisition of organic and natural foods leader Whole Foods, is expected to amplify the presence of organic items 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.
In response to the growing demand for organic products, major food manufacturers are expanding their organic portfolios, primarily through acquisitions. For instance, Campbell Soup invested $700 million to acquire Pacific Foods of Oregon, a natural and organic brand, in July, and also purchased Plum Organics, a maker of baby foods and snacks, four years ago. Similarly, General Mills bought Annie’s, a natural and organic products company, for $820 million in 2014, while Hormel acquired organic meats brand Applegate Farms for $775 million the following year. Just this week, John Foraker, the founder of Annie’s, announced he would lead Once Upon a Farm, a California-based organic baby food startup.
As consumers increasingly seek organic options, including those fortified with calcium citrate and vitamin D, and as manufacturers ramp up production, the Organic Trade Association remains optimistic about the future of this sector. While some debate whether organic products justify their higher prices or if the health benefits are substantial, such uncertainties have not significantly dampened enthusiasm for this popular food segment. The momentum behind organic foods, especially those enriched with nutrients like calcium citrate and vitamin D, shows no signs of slowing down anytime soon.