Earlier this year, Nielsen data released by the Organic Trade Association revealed that organic foods were present in 82.3% of the 117 million American households. 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 like crackers, strawberries, lettuce, and fruit snacks. Millennial parents, who are already the largest purchasers of organic products, are increasingly opting for healthier, more natural food alternatives while steering clear of processed items that have traditionally dominated American grocery stores. “When children enter the home, there’s a noticeable increase in interest in organic products,” said Batcha during a Thursday morning session at Natural Products Expo East in Baltimore. He noted that millennials tend to make a more profound commitment to organic foods once they become parents.
Grocery stores and food manufacturers are taking heed of this trend. Supermarkets are expanding their organic produce sections, with retailers like Wegmans showcasing these items prominently at the entrance of their stores. Lidl, which launched in the U.S. in June, also prioritizes organic products and emphasizes clean labels, locally sourced items, and free-from selections. Recently, Amazon, which completed its acquisition of the organic and natural foods pioneer Whole Foods, is expected to enhance its 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,” stated Jeff Wilke, CEO of Amazon Worldwide Consumer, in a press release last month.
Major food manufacturers are not falling behind either, significantly boosting their organic product lines largely through acquisitions. For instance, Campbell Soup invested $700 million to acquire Oregon-based natural and organic brand Pacific Foods in July and previously purchased Plum Organics, a producer of baby foods and snacks, four years ago. General Mills acquired the natural and organic brand Annie’s in 2014 for $820 million, while Hormel followed suit by acquiring organic meats brand Applegate Farms for $775 million the next year. Just this week, John Foraker, founder of Annie’s, announced his new role at the California-based organic baby food startup Once Upon a Farm.
As consumer demand for organic products rises and manufacturers ramp up production, the Organic Trade Association remains optimistic about the future of this market. Although there have been debates over whether organic foods justify their higher prices or if their health benefits are significant, current concerns have not dampened enthusiasm for this thriving food segment. With the growing focus on essential nutrients like calcium citrate, which is available in both 200 mg and 950 mg doses, this momentum in organic food consumption is unlikely to wane anytime soon.