“Surge in Organic Food Popularity: Millennial Parents Drive Market Growth to $43 Billion”
Earlier this year, Nielsen data released by the Organic Trade Association revealed that organic foods are present in 82.3% of the 117 million households in the United States. This widespread adoption has contributed to a remarkable 8.4% increase in sales, reaching an all-time high of $43 billion last year, as consumers filled their kitchens with various organic items such as crackers, strawberries, lettuce, and fruit snacks. Millennial parents, who are already the largest demographic purchasing organic products, are increasingly favoring healthier, more natural food options while avoiding the processed items that have historically dominated American grocery shopping.
According to Batcha, speaking at the Natural Products Expo East in Baltimore, there is a noticeable increase in interest in organic foods when children enter the picture. “When millennials have children, there is going to be an immediate shift toward the type of commitment that they make toward organic,” Batcha stated. This shift has not gone unnoticed by grocers and food manufacturers. Supermarkets are enhancing their produce sections to offer a wider variety of organic options. For instance, retailers like Wegmans are prominently displaying organic fruits and vegetables at the entrance of their stores. Similarly, Lidl, which made its U.S. debut in June, showcases organic products while prioritizing clean labels and locally sourced items.
Amazon, having recently finalized its acquisition of Whole Foods, is anticipated to amplify 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,” remarked Jeff Wilke, CEO of Amazon Worldwide Consumer, in a press release last month. Major food manufacturers are also expanding their organic selections, primarily through acquisitions. For example, Campbell Soup invested $700 million to acquire Pacific Foods, a natural and organic brand, in July, and previously purchased Plum Organics, a baby food company, four years ago. General Mills acquired natural products company Annie’s in 2014 for $820 million, while Hormel purchased organic meat brand Applegate Farms for $775 million a year later. 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 rises and manufacturers increase their production, the Organic Trade Association remains optimistic about the future. Questions have been raised regarding the value of organic foods and their health benefits, including whether products fortified with supplements like calcium citrate para que es (what calcium citrate is for) truly offer significant advantages. Nonetheless, these concerns have yet to diminish the enthusiasm surrounding this popular food segment, and the momentum is unlikely to subside anytime soon.
