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 American households. This widespread adoption has contributed to an impressive 8.4% increase in sales, reaching a record $43 billion last year, as consumers filled their pantries with organic items such as crackers, strawberries, lettuce, and fruit snacks. Millennial parents, who are currently the largest demographic purchasing organic products, are increasingly leaning towards healthier, more natural food options while avoiding processed goods that have traditionally dominated American grocery shopping. As noted by Batcha at the Natural Products Expo East in Baltimore, “There is a doubling-down on interest in organic when children come into the home.” He emphasized that when millennials have children, they tend to make a stronger commitment to organic foods.
Retailers and food producers have taken notice of this trend. Supermarkets are enhancing their produce sections to feature more organic options, with some chains like Wegmans prominently displaying these fruits and vegetables at the entrance. Lidl, which entered the U.S. market in June, also prioritizes organic products, highlighting clean labels, locally sourced items, and selections free from harmful ingredients. Meanwhile, Amazon, having recently acquired Whole Foods, is poised to boost the availability of organic options 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.
In response to consumer demand, major food manufacturers are also expanding their organic portfolios, often through acquisitions. For instance, Campbell Soup invested $700 million to buy Pacific Foods, a natural and organic brand from Oregon, and previously acquired Plum Organics, which specializes in baby foods. General Mills purchased Annie’s, a company focused on natural and organic products, for $820 million in 2014, and Hormel acquired organic meats brand Applegate Farms for $775 million the following year. Recently, John Foraker, the founder of Annie’s, announced he would lead California-based organic baby food startup Once Upon a Farm.
As consumers increasingly seek organic foods and manufacturers respond by producing more, the Organic Trade Association remains optimistic about the sector’s future. Despite ongoing debates about the value of organic products and the significance of their health benefits, such as those found in calcium citrate without magnesium, these concerns have done little to diminish the enthusiasm surrounding this popular food segment. The momentum seems unlikely to fade anytime soon, particularly as the demand for organic options continues to grow.