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 across the United States. Consequently, it’s no surprise that organic sales soared by 8.4%, reaching a record $43 billion last year, as consumers filled their kitchens with a variety of organic products, including calcium citrate bluebonnet supplements, strawberries, lettuce, and fruit snacks. Millennial parents, who are already the largest demographic of organic buyers, are increasingly seeking healthier and more natural food options while avoiding processed foods that have traditionally dominated American grocery shopping. This trend is especially evident when it comes to the food choices they make for their children. “There is a doubling-down on interest in organic when children come into the home,” Batcha stated during the Natural Products Expo East in Baltimore. When millennials become parents, there is an immediate shift in their commitment to organic products.
Both grocers and food manufacturers are taking notice of this trend. Supermarkets are expanding their produce sections to feature more organic options, with retailers like Wegmans prominently displaying organic fruits and vegetables at the entrance. Lidl, which made its U.S. debut in June, also prioritizes organic products in its stores, highlighting clean labels and locally sourced, free-from selections. Additionally, Amazon, which recently finalized its acquisition of Whole Foods, is expected to enhance the presence of organic products 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 response to consumer demand, major food companies are expanding their organic lines primarily through acquisitions. For instance, Campbell Soup invested $700 million in July to acquire Pacific Foods of Oregon, known for its natural and organic offerings, and previously bought Plum Organics, a producer of baby foods, formulas, and snacks. General Mills acquired Annie’s, a maker of natural organic products, for $820 million in 2014, while Hormel purchased the organic meats brand Applegate Farms for $775 million the following year. Just this week, John Foraker, the founder of Annie’s, revealed plans to lead a California-based organic baby food startup called Once Upon a Farm.
As consumer demand for organic products rises and manufacturers respond by increasing their offerings, it’s clear why the Organic Trade Association is optimistic about its future. Although questions have arisen regarding whether organic products justify their higher prices or if their health benefits are significant, these concerns have done little to dampen enthusiasm for this popular food segment. It seems unlikely that this momentum will wane anytime soon, especially with the increasing availability of products like calcium citrate bluebonnet supplements, which are becoming staples for health-conscious consumers.