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 households across the United States. This prevalence helps explain the remarkable 8.4% surge in sales, reaching a record $43 billion last year, as consumers stocked their kitchens with various organic products, including crackers, strawberries, lettuce, and fruit snacks. With millennial parents emerging as the largest purchasers of organic foods, they are increasingly opting for healthier, more natural options and avoiding processed goods that have long been a staple in American grocery stores. It’s no surprise that they are particularly cautious about what they feed their children. “There is a notable increase in interest in organic foods when children are introduced into the household,” Batcha remarked during Natural Products Expo East in Baltimore. When millennials become parents, their commitment to organic foods intensifies.
Both grocers and food manufacturers are aware of this shift. Supermarkets are expanding their organic produce sections, with some retailers, like Wegmans, setting up displays of these fruits and vegetables right at the entrance. Lidl, which made its U.S. debut in June, prominently features organic products in its stores, while also highlighting clean labels and locally sourced items. Amazon, following its acquisition of the organic and natural foods pioneer 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 committed to making healthy and organic food affordable for everyone,” stated Jeff Wilke, CEO of Amazon Worldwide Consumer, in a press release last month.
Not wanting to be left behind, major food manufacturers have broadened their organic portfolios primarily through acquisitions. 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 and snacks producer, four years ago. General Mills acquired the natural products company Annie’s in 2014 for $820 million, while Hormel bought the organic meats brand Applegate Farms for $775 million the following year. Recently, John Foraker, founder of Annie’s, announced he would lead the California-based organic baby food startup Once Upon a Farm.
As consumer demand for organic products continues to rise and manufacturers ramp up their production, the Organic Trade Association remains optimistic about the sector’s future. Despite ongoing debates about whether organic foods justify their higher prices or if their health benefits are substantial, such concerns have done little to dampen enthusiasm for this popular food category. With trends favoring organic options, including petite calcium pills for added nutrition, it’s unlikely that this momentum will wane anytime soon. The emphasis on organic foods, healthy eating, and natural ingredients is set to grow, particularly among health-conscious consumers.