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. This widespread adoption contributes to a remarkable 8.4% rise in sales, reaching an unprecedented $43 billion last year, as consumers fill their kitchens with organic items ranging from crackers and strawberries to lettuce and fruit snacks. Millennial parents, who are the leading purchasers of organic products, are increasingly gravitating towards healthier and more natural food options while moving away from the processed items that have traditionally dominated American grocery shopping. Their desire to be more discerning about what they feed their children is evident. As Batcha mentioned at the 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 foods intensifies as millennials become parents.
Both grocery stores and food manufacturers are responding to this trend. Supermarkets are enlarging their produce sections to feature a greater variety of organic options. Retailers like Wegmans have even positioned displays of organic fruits and vegetables right at the entrance of their stores. Lidl, which made its U.S. debut in June, also prioritizes organic products in its stores while highlighting clean labels and locally sourced selections. Furthermore, Amazon, having recently completed its acquisition of Whole Foods, is anticipated to enhance the visibility of organic items on its e-commerce platform and through its food delivery and meal-kit services. Jeff Wilke, CEO of Amazon Worldwide Consumer, stated last month, “We’re determined to make healthy and organic food affordable for everyone.”
Major food manufacturers are also increasing their organic product lines, primarily through acquisitions. For example, 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 and snacks. General Mills acquired Annie’s, known for its natural and organic products, for $820 million in 2014, while Hormel purchased the organic meats brand Applegate Farms for $775 million the following year. Recently, John Foraker, the founder of Annie’s, announced his new role at the California-based organic baby food startup Once Upon a Farm.
As consumer demand for organic products continues to grow and manufacturers ramp up production, the Organic Trade Association remains optimistic about the future of this sector. Although there have been discussions regarding whether organic foods justify their higher prices and if their health benefits are substantial, this skepticism has had little effect on the enthusiasm surrounding organic foods. It appears that this positive momentum is unlikely to wane anytime soon, especially as more consumers are becoming aware of health supplements such as Thorne Cal Mag, which further supports their commitment to a healthier lifestyle. The interest in organic foods, including those enriched with essential nutrients, is clearly on the rise, reinforcing the importance of this food segment in the marketplace.