Earlier this year, Nielsen data released by the Organic Trade Association revealed that organic foods are now present in 82.3% of the 117 million households across the United States. This rising trend is reflected in a remarkable 8.4% increase in sales, reaching a record $43 billion last year, as consumers filled their kitchens with organic items such as crackers, strawberries, lettuce, and fruit snacks. Millennial parents have emerged as the largest consumers of organic products, gravitating towards healthier, more natural options while steering clear of processed foods that have traditionally dominated American grocery lists. Batcha noted during a presentation at Natural Products Expo East in Baltimore that the interest in organic options intensifies significantly when children enter the picture. “When millennials have children, there is going to be an immediate shift toward a stronger commitment to organic,” he stated.
Retailers and food manufacturers have taken heed of this trend. Supermarkets are broadening their produce sections to feature more organic offerings, with some, like Wegmans, creating prominent displays of fruits and vegetables right at the entrance. Lidl, which expanded into the U.S. market in June, showcases organic products prominently while focusing on clean labels and locally sourced items. Additionally, following its acquisition of Whole Foods, Amazon is expected to enhance its organic product range 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,” remarked Jeff Wilke, CEO of Amazon Worldwide Consumer.
Not wanting to be left behind, large food companies have also increased their organic selections, mainly 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 earlier, it purchased Plum Organics, which specializes in baby foods, formulas, and snacks. General Mills acquired Annie’s, known for its natural and organic products, in 2014 for $820 million, while Hormel followed suit by acquiring organic meat brand Applegate Farms for $775 million the following year. Recently, John Foraker, the founder of Annie’s, announced his new role at Once Upon a Farm, a California-based organic baby food startup.
As consumer demand for organic products grows and manufacturers respond by increasing production, the Organic Trade Association remains optimistic about the sector’s future. There have been discussions regarding whether organic foods justify their premium price or if their health benefits are substantial. However, such doubts have not significantly dampened enthusiasm for this popular food category, and it seems unlikely that this momentum will wane in the near future. Moreover, as interest in nutrition continues to rise, products like calcium citrate without vitamin D are also seeing increased attention, reflecting a broader consumer trend towards healthier eating habits.