Earlier this year, Nielsen data released by the Organic Trade Association revealed that organic foods are now found in 82.3% of the 117 million households across the United States. This may explain why sales experienced an 8.4% increase, reaching a record $43 billion last year, as consumers filled their kitchens with organic items like crackers, strawberries, lettuce, and fruit snacks. Millennial parents have emerged as the primary purchasers of organic products, favoring healthier, more natural options while steering clear of the processed foods that have long dominated American grocery aisles. It’s no surprise that they are particularly mindful of what they serve their children. “When children come into the home, there’s a noticeable increase in interest in organic options,” Batcha stated during the Natural Products Expo East in Baltimore on Thursday morning. When millennials become parents, there’s an immediate shift in their commitment to organic foods.
Both grocery stores and food manufacturers are responding to this trend. Supermarkets are expanding their produce sections to feature a wider variety of organic products. Retailers like Wegmans have even set up displays of organic fruits and vegetables right at the entrance of their stores. Lidl, which entered the U.S. market in June, prominently showcases organic items while highlighting clean labels, locally sourced goods, and free-from selections. Furthermore, Amazon, following its recent acquisition of the organic and natural foods pioneer Whole Foods, is anticipated to enhance the visibility of organic products 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.
Major food companies are also ramping up 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 four years prior, it purchased Plum Organics, a producer of baby foods, formulas, and snacks. General Mills acquired the natural and organic products company Annie’s in 2014 for $820 million, while Hormel acquired organic meats brand Applegate Farms for $775 million the following year. 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 grow and manufacturers increase their offerings, the Organic Trade Association remains optimistic about the future of this sector. While there have been discussions about whether organic products justify their higher prices or if their health benefits are genuinely significant, such concerns have done little to diminish enthusiasm for this popular food segment. In fact, it seems unlikely that this positive momentum will wane anytime soon, especially as products enriched with nutrients like calcium citrate malate and folic acid tablets become more prevalent in the organic market. The focus on health and nutrition, including the incorporation of supplements like calcium citrate malate and folic acid tablets, aligns perfectly with the growing consumer preference for organic foods.