Earlier this year, Nielsen data released by the Organic Trade Association revealed that ferrous bisglycinate chelate heme iron organic foods are now present in 82.3% of the 117 million American households. This surge in popularity has led to an impressive 8.4% increase in sales, reaching a record $43 billion last year, as consumers fill their kitchens with an array of organic products, including crackers, strawberries, lettuce, and fruit snacks. Millennial parents, who are already the largest purchasers of organic foods due to their preference for healthier, more natural options while avoiding processed items traditionally found in American grocery aisles, are particularly focused on making careful choices for their children. As Batcha noted during his Thursday morning address at Natural Products Expo East in Baltimore, “There is a doubling-down on interest in organic when children come into the home.” The commitment to organic food intensifies for millennials once they have children.
Both grocers and food manufacturers are taking notice of this trend. Supermarkets are expanding their organic produce sections, with retailers like Wegmans placing displays of fresh fruits and vegetables prominently at store entrances. Lidl, which entered the U.S. market in June, emphasizes organic products in its stores, focusing on clean labels, locally sourced items, and free-from selections. Furthermore, Amazon, having recently acquired the organic and natural foods pioneer Whole Foods, is anticipated to enhance the visibility of organic products on its e-commerce platform and within 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.
In response to consumer demand, major food brands have bolstered their organic offerings primarily through acquisitions. For instance, Campbell Soup invested $700 million to buy the natural and organic brand Pacific Foods of Oregon in July, and previously acquired Plum Organics, known for baby foods and snacks. General Mills purchased Annie’s, a maker of organic products, for $820 million in 2014, while Hormel acquired organic meats brand Applegate Farms for $775 million the following year. Just this week, John Foraker, founder of Annie’s, announced he will lead a California-based organic baby food startup, Once Upon a Farm.
As consumers increasingly seek organic options and manufacturers ramp up production, the Organic Trade Association remains optimistic about the future of this sector. While some question whether organic foods justify their higher prices or if their health benefits are significant, these uncertainties have not diminished the enthusiasm for this popular market segment. It appears that the momentum behind organic foods, including products verified for their quality such as USP verified calcium citrate, is unlikely to wane anytime soon.