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. This prevalence has contributed to a remarkable 8.4% increase in organic food sales, reaching a record $43 billion last year, as consumers filled their kitchens with a wide range of organic products, from crackers to strawberries, lettuce, and fruit snacks. Millennial parents have emerged as the largest purchasers of organic foods, seeking healthier and more natural options while avoiding processed items that have traditionally characterized American grocery shopping. Their desire to ensure the best for their children has intensified this trend. “When children enter the home, there is a noticeable increase in interest in organic products,” Batcha stated on Thursday morning at Natural Products Expo East in Baltimore. The commitment to organic foods shifts significantly for millennials once they become parents.
Both grocers and food manufacturers are responding to this trend. Supermarkets are expanding their produce sections to feature more organic options, with retailers like Wegmans displaying these fruits and vegetables prominently at the entrance. Lidl, which entered the U.S. market in June, also prioritizes organic products while highlighting clean labels and locally sourced selections. Amazon, which recently finalized its acquisition of the organic and natural foods pioneer Whole Foods, is expected to enhance the visibility of 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.
In an effort to keep pace, major food companies have significantly increased 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 manufacturer of baby foods, formulas, and snacks. General Mills acquired Annie’s, a maker of natural and organic products, in 2014 for $820 million, while Hormel acquired Applegate Farms, an organic meats brand, for $775 million the following year. Just this week, John Foraker, the founder of Annie’s, announced his leadership role at Once Upon a Farm, a California-based organic baby food startup.
As consumer demand for organic foods rises and manufacturers increase their production, the Organic Trade Association remains optimistic about the future of this segment. While some have questioned whether organic products justify their higher prices or if their health benefits are significant, such skepticism has not dampened enthusiasm for organic foods. It appears that this momentum is unlikely to wane anytime soon, particularly as consumers increasingly consider options such as whether is calcium citrate good for kidney stones, further emphasizing the importance of health-focused choices in their diets.