Three stocks sprouting in a growing organic market

Mainstream markets are cultivating more organic options from these brands

Vikram Barhat 27 February, 2019 | 6:00PM

With a tailwind of growing consumer demand, the organic food sector has been expanding relentlessly. The trends of healthy eating, greater environmental awareness, and shrinking price gaps between organic and non-organic products are some of the leading factors

The mainstreaming of organic food, driven primarily by health conscious millennial consumers who prefer cleaner over convenient, is claiming an ever increasing share of grocery carts, filling them with organic produce, ice cream, fresh juices, energy drinks, dairy and bakery products, and even organic baby food.

The global organic food and beverage market is projected to balloon from about US$125 billion in 2017 to US$323 billion by the end of 2024, growing nearly 15% annually, according to a report by Zion Market Research. North America, which accounts for about 40% of organic revenue, dominates the global market, and saw organic food sales jump 6.4% in 2017, clocking a record US$45.2 billion in sales, according to a report from the Organic Trade Association (OTA). Organic food currently accounts for only 5.5% of total food sales in the U.S. and is a  clear indication of the market’s future growth opportunity.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
General Mills Inc61.49 USD1.09
Hormel Foods Corp47.38 USD0.96
Sprouts Farmers Market Inc24.89 USD0.28

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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