Earlier this year, Nielsen data published by the Organic Trade Association revealed that organic foods are present in 82.3% of the 117 million households in the United States. This widespread adoption likely 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 items such as crackers, strawberries, lettuce, and fruit snacks. Millennial parents, who are now the largest purchasers of organic products, are increasingly opting for healthier and more natural food options while avoiding processed items that have traditionally dominated American grocery shopping. It’s no surprise that they are particularly cautious about what they feed their children. “When children enter the home, there is a renewed interest in organic,” Batcha stated at the Natural Products Expo East in Baltimore on Thursday. As millennials have children, their commitment to organic products tends to strengthen.
Grocers and food manufacturers are responding to this trend. Supermarkets are expanding their produce sections to include more organic options, with retailers like Wegmans showcasing these fruits and vegetables right at the store entrance. Lidl, which entered the U.S. market in June, prominently features organic products while also focusing on clean labels and locally sourced, free-from selections. Amazon, having recently finalized its acquisition of organic and natural foods pioneer Whole Foods, is expected to enhance the visibility of organic products on its e-commerce platform, food delivery services, and meal-kit offerings. “We’re committed to making healthy and organic food affordable for everyone,” stated Jeff Wilke, CEO of Amazon Worldwide Consumer, in a press release last month.
In a similar vein, major food manufacturers are expanding their organic product lines, primarily through acquisitions. For instance, Campbell Soup invested $700 million to acquire the natural and organic brand Pacific Foods of Oregon in July and previously purchased Plum Organics, a baby food maker, four years ago. General Mills bought Annie’s, a producer of natural and organic products, for $820 million in 2014, while Hormel acquired the organic meats brand Applegate Farms for $775 million a year later. Recently, John Foraker, the founder of Annie’s, announced his new role at Once Upon a Farm, a California-based organic baby food startup.
As consumer demand for organic products continues to rise and manufacturers increase their offerings, the Organic Trade Association remains optimistic about the future of this sector. Although questions linger about the value of organic foods and their health benefits, this skepticism has not significantly dampened enthusiasm for the popular food segment. It seems likely that this positive momentum will persist, particularly as consumers seek nutrient-rich options, including calcium citrate, magnesium, zinc, and cholecalciferol tablets, to enhance their and their children’s overall well-being. As the organic market continues to grow, it’s clear that both consumers and manufacturers are dedicated to embracing healthier, organic choices.