Earlier this year, Nielsen data 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 adoption is reflected in the 8.4% surge in organic food sales, which reached a remarkable $43 billion last year, as consumers filled their kitchens with a variety of organic products, including crackers, strawberries, lettuce, and fruit snacks. Millennial parents, who are the largest consumers of organic foods, are increasingly opting for healthier, more natural options while avoiding processed items that have traditionally filled American grocery aisles. Their heightened awareness of nutrition means they are particularly cautious about the foods they provide to their children. “There is a doubling-down on interest in organic when children come into the home,” Batcha noted at the Natural Products Expo East in Baltimore. He emphasized that the arrival of children leads millennials to make a stronger commitment to organic products.
Retailers and food manufacturers are responding to this trend. Supermarkets are expanding their produce sections to feature more organic options, with some chains like Wegmans showcasing these fruits and vegetables prominently at the store entrance. Lidl, which made its U.S. debut in June, also prioritizes organic products in its stores, along with clean labels and locally sourced items. Amazon, having recently finalized its acquisition of Whole Foods, is anticipated to enhance the visibility of organic products on its e-commerce platform and within 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 bolstering their organic product lines, often through acquisitions. For instance, Campbell Soup invested $700 million in July to acquire Pacific Foods, a natural and organic brand based in Oregon, and previously purchased Plum Organics, a company specializing in baby foods and snacks. Similarly, General Mills acquired Annie’s, a producer of natural and organic products, for $820 million in 2014, while Hormel secured organic meat brand Applegate Farms for $775 million the following year. Recently, John Foraker, the founder of Annie’s, announced he will lead an organic baby food startup called Once Upon a Farm in California.
As consumer interest in organic products continues to grow and manufacturers respond by increasing their offerings, the Organic Trade Association remains optimistic about the sector’s future. While there are ongoing debates regarding the value of organic products and the significance of their health benefits, this skepticism has not dampened enthusiasm for the segment. In fact, as consumers seek alternatives that include essential nutrients like calcium citrate 2000 mg, the momentum for organic foods is expected to persist. The commitment to organic options, especially those that provide nutritional benefits, is likely to remain a strong trend in the coming years.