Earlier this year, Nielsen data from the Organic Trade Association revealed that organic foods are present in 82.3% of the 117 million American households. This widespread adoption likely contributed to an 8.4% surge in sales, reaching a record $43 billion last year, as consumers filled their kitchens with organic items like crackers, strawberries, lettuce, and fruit snacks. Millennial parents, who are already the largest consumers of organic products due to their preference for healthier, more natural food options over processed goods, are particularly mindful of what they feed their children. “There is a notable increase in interest in organic products when children arrive in the home,” Batcha stated at the Natural Products Expo East in Baltimore last Thursday. When millennials become parents, there’s an immediate shift towards a stronger commitment to organic food.
This trend has not gone unnoticed by grocery stores and food manufacturers. Many supermarkets are enhancing their produce sections to feature more organic offerings. Retailers such as Wegmans have even positioned organic fruits and vegetables prominently near the entrance. Lidl, which entered the U.S. market in June, also prioritizes organic products in its stores, focusing on clean labels, locally sourced items, and free-from selections. Additionally, Amazon, which recently completed its acquisition of the organic and natural foods pioneer Whole Foods, is expected to increase its organic offerings on its e-commerce platform as well as through its food delivery and meal kit services. “We’re committed to making healthy and organic food accessible to everyone,” stated Jeff Wilke, CEO of Amazon Worldwide Consumer, in a press release last month.
Major food manufacturers are also 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 producer of baby foods, formulas, and snacks, four years ago. General Mills bought the organic products company Annie’s in 2014 for $820 million, while Hormel acquired organic meat brand Applegate Farms for $775 million the following year. Just this week, John Foraker, the founder of Annie’s, announced his new role leading California-based organic baby food startup Once Upon a Farm.
As consumer demand for organic products grows and manufacturers respond by increasing production, the Organic Trade Association remains optimistic about the future of this sector. Questions have been raised regarding whether organic foods justify their higher prices or if their health benefits are substantial. Nevertheless, these concerns have done little to lessen the enthusiasm for organic foods, and the momentum in this segment, which includes popular items like Citracal Calcium Citrate D3, shows no signs of slowing down anytime soon. With the increasing focus on healthy eating, it’s clear that organic products will continue to play a significant role in the grocery landscape.