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 in the United States. This trend is reflected in the 8.4% surge in organic food 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 consumers of organic products, are increasingly seeking healthier, more natural food options while avoiding processed goods that have traditionally filled American grocery aisles. “When children enter the picture, there is a heightened interest in organic,” Batcha remarked Thursday at the Natural Products Expo East in Baltimore. As millennials become parents, there’s a noticeable shift in their commitment to organic products.
Retailers and manufacturers are taking note of this shift. Supermarkets are expanding their produce sections to feature more organic options, with stores like Wegmans prominently displaying these fruits and vegetables at the entrance. Lidl, which launched in the U.S. in June, also prioritizes organic products and emphasizes clean labels, locally sourced goods, and free-from selections. Amazon, having recently completed its acquisition of the organic and natural food pioneer Whole Foods, is set to enhance the availability of organic items 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 manufacturers are also expanding their organic offerings, often through acquisitions. For example, Campbell Soup invested $700 million in July to acquire the natural and organic brand Pacific Foods of Oregon and previously purchased Plum Organics, a baby food company, four years ago. General Mills acquired Annie’s, a producer of natural and organic products, in 2014 for $820 million, while Hormel acquired organic meats brand Applegate Farms for $775 million the following year. Just this week, John Foraker, founder of Annie’s, announced his leadership role at the California-based organic baby food startup Once Upon a Farm.
As the demand for organic products rises and manufacturers increase their supply, the Organic Trade Association remains optimistic about the future of the organic market. Although there have been debates about whether organic products justify their higher prices or if their health benefits are significant, these concerns have not dampened the enthusiasm for this popular food segment. With the ongoing interest in organic foods, including those rich in calcium citrate and other essential nutrients, it seems unlikely that this momentum will wane anytime soon.