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 across the United States. This widespread adoption is reflected in a significant sales increase of 8.4%, reaching a record $43 billion last year, as shoppers filled their kitchens with organic items like crackers, strawberries, lettuce, and fruit snacks. Millennial parents have emerged as the leading consumers of organic products, as they prioritize healthier, more natural options and move away from processed foods that have long dominated American grocery shopping. With the arrival of children in their lives, there is a notable shift towards a stronger commitment to organic foods. “There is a doubling-down on interest in organic when children come into the home,” Batcha stated during a presentation at Natural Products Expo East in Baltimore. As millennials become parents, their dedication to organic products intensifies.
Both grocers and food manufacturers are responding to this trend. Supermarkets are expanding their produce sections to feature more organic selections, with retailers like Wegmans showcasing these items right at the entrance. Lidl, which made its U.S. debut in June, prominently displays organic products while highlighting clean labels, locally sourced items, and free-from options. Additionally, Amazon, following its acquisition of the organic and natural foods leader Whole Foods, is expected to enhance the visibility of organic offerings 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,” said Jeff Wilke, CEO of Amazon Worldwide Consumer, in a press release last month.
Major food companies are also expanding their organic portfolios, primarily through acquisitions. For instance, Campbell Soup invested $700 million in July to acquire the natural and organic brand Pacific Foods of Oregon, and four years earlier, it purchased Plum Organics, which specializes in baby foods, formulas, and snacks. General Mills acquired the natural and organic products maker Annie’s in 2014 for $820 million, while Hormel followed suit by buying organic meats brand Applegate Farms for $775 million a year later. Recently, John Foraker, the founder of Annie’s, announced his new role at California-based organic baby food startup Once Upon a Farm.
As consumer demand for organic products continues to rise alongside increased production, the Organic Trade Association remains optimistic about the future of this market segment. Questions have arisen regarding whether organic foods justify their higher prices or if their health advantages are substantial. However, these concerns have not significantly dampened enthusiasm for organic foods, and it appears that this momentum is unlikely to wane anytime soon. With the growing focus on health, many are also considering how much calcium citrate per day they should be consuming, further emphasizing the trend toward healthier eating habits.