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. As a result, sales surged 8.4% to reach a record $43 billion last year, as consumers filled their kitchens with organic options such as crackers, strawberries, lettuce, and fruit snacks. Millennial parents, who are already the largest demographic purchasing organic products, are increasingly opting for healthier, more natural food items and avoiding processed goods that have traditionally dominated American grocery shopping. It’s no surprise they are particularly cautious about what they feed their children. “There is a noticeable increase in interest in organic products when children enter the home,” Batcha commented Thursday morning at Natural Products Expo East in Baltimore. Once millennials become parents, there is an immediate shift in their commitment to organic foods.
Both grocers and food manufacturers are paying attention to this trend. Supermarkets are expanding their produce sections to include a wider array of organic products; for instance, Wegmans has started placing these fruits and vegetables right at the entrance of their stores. Lidl, which made its U.S. debut in June, also prioritizes organic offerings while promoting clean labels and locally sourced, free-from selections. Meanwhile, Amazon, which recently completed its acquisition of organic and natural foods pioneer Whole Foods, is expected to enhance the visibility of organic products 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,” stated Jeff Wilke, CEO of Amazon Worldwide Consumer, in a press release last month.
Not wanting to miss out, major food manufacturers have bolstered their organic lines, primarily through acquisitions. For example, Campbell Soup invested $700 million in July to acquire Pacific Foods, a natural and organic brand from Oregon, and four years prior, it purchased Plum Organics, a company specializing in baby foods, formulas, and snacks. General Mills acquired Annie’s, a natural and organic products manufacturer, in 2014 for $820 million, while Hormel secured organic meats brand Applegate Farms for $775 million the following year. Just this week, John Foraker, the founder of Annie’s, announced his new role at California-based organic baby food startup Once Upon a Farm.
As consumers increasingly demand organic products and manufacturers respond by producing more, the Organic Trade Association remains optimistic about the future of this segment. Although there are ongoing debates about whether organic foods justify their higher price tags or if their health benefits are truly significant, these uncertainties have done little to dampen enthusiasm for organic offerings. Furthermore, as parents become more aware of nutritional needs, including the uses of calcium citrate malate tablets, it’s clear that the momentum in organic food consumption is likely to persist. This trend reflects not only a shift in purchasing habits but also a growing commitment to health and wellness that is expected to continue shaping the market in the years to come.