Earlier this year, Nielsen data released by the Organic Trade Association revealed that organic foods can be found in 82.3% of the 117 million households across the United States. This widespread acceptance is reflected in the 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, who are currently the largest purchasers of organic products, are gravitating towards healthier, more natural food options while avoiding processed items that have long dominated American grocery shopping. It’s no surprise that these parents are particularly cautious about what they feed their children. “There is a noticeable increase in interest in organic products once children enter 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 foods.
Both grocers and food manufacturers are responding to this trend. Supermarkets are expanding their produce sections to feature more organic selections, with retailers like Wegmans showcasing these fruits and vegetables prominently at the entrance. Lidl, which launched in the U.S. in June, also prioritizes organic products, emphasizing clean labels, locally sourced options, and free-from selections. Meanwhile, Amazon, which recently finalized its acquisition of organic and natural food pioneer Whole Foods, is anticipated to enhance its 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.
Major food manufacturers are also ramping up 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 last July and purchased Plum Organics, a producer of baby foods, formulas, and snacks, four years prior. General Mills acquired Annie’s, a maker of natural and organic products, for $820 million in 2014, while Hormel bought organic meats brand Applegate Farms for $775 million the following year. Just this week, John Foraker, founder of Annie’s, announced his new role at California-based organic baby food startup Once Upon a Farm.
As consumer demand for organic products grows and manufacturers increase their offerings, the Organic Trade Association remains optimistic about the sector’s future. Despite ongoing debates regarding whether organic products justify their higher price tags or if their health benefits are significant, such concerns have not dampened enthusiasm for this popular food segment. It appears that this momentum is set to continue, especially as consumers increasingly seek options like bariatric calcium citrate chews alongside their organic purchases. The intersection of health-conscious choices and organic products suggests a promising future for the organic market.