A recent report released by the Organic Trade Association revealed that organic foods are present in 82.3% of the 117 million American households. This significant presence has contributed to an impressive sales surge of 8.4%, culminating in a record $43 billion last year, as consumers increasingly stock their kitchens with organic items like crackers, strawberries, lettuce, and fruit snacks. Millennial parents, who are already the largest consumers of organic products, are particularly keen on providing healthier, more natural food options for their children while avoiding the processed items that have traditionally dominated American grocery shopping.
According to Batcha, speaking at the Natural Products Expo East in Baltimore, “There’s a noticeable increase in interest in organic foods when kids come into the family.” As millennials become parents, they tend to shift their commitment toward organic products. Grocery stores and food manufacturers are responding to this trend. Supermarkets are expanding their organic produce sections, with retailers like Wegmans prominently displaying these fruits and vegetables right at the entrance. Lidl, which made its U.S. debut in June, also prioritizes organic products and emphasizes clean labels, locally sourced ingredients, and free-from selections. Amazon, following its acquisition of the organic and natural foods pioneer Whole Foods, is expected to enhance the visibility of organic products on its e-commerce platform, as well as 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 recent press release.
In order to stay competitive, major food manufacturers are expanding 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, known for its baby foods, formulas, and snacks. General Mills acquired natural products maker Annie’s in 2014 for $820 million, while Hormel acquired organic meats brand Applegate Farms for $775 million the following year. Just this week, John Foraker, founder of Annie’s, announced his new role leading the California-based organic baby food startup Once Upon a Farm.
As consumer demand for organic products rises and manufacturers ramp up production, the Organic Trade Association remains optimistic about the future of this food segment. Although questions persist regarding whether organic foods justify their higher prices or whether their health benefits are substantial, such concerns have not dampened enthusiasm for organic options. In fact, this trend is expected to continue thriving. Additionally, there has been a growing interest in dietary supplements like calcium citrate magnesium vitamin D3 and zinc tablets, which align with the health-conscious choices consumers are making. As organic options proliferate and interest in supplements grows, it is clear that the momentum for healthier eating is unlikely to wane anytime soon.