Three stocks to benefit as healthy-eating trend begins to sprout

These food companies are well positioned to benefit from the long-term growth of the thriving organic marketplace.

Vikram Barhat 21 February, 2018 | 6:00PM
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There's a big shift taking place in global food consumption. A growing number of consumers are picking healthier and cleaner food over tasty and convenient fare. The trend is driving exponential growth in demand for organic foods, which are produced without the use of pesticides and chemical fertilizers.

The global organic food & beverage market is projected to skyrocket to US$320.5 billion by 2025, from US$77.4 billion in 2015, according to a report by Grand View Research, Inc., a U.S.-based market research and consulting company. The U.S., the biggest single consumer market for organic food, saw total organic food sales jump 8.4% year over year to reach US$43 billion in 2016, far outstripping the stagnant 0.6% growth rate in the overall food market, according to a report from the Organic Trade Association (OTA). Yet, according to OTA, organic food accounts for only 5.3% of total food sales in the U.S.

That's about to change. "Growing awareness regarding the health benefits of organic food consumption, rising per capita spending on organic food products and increasing health concerns due to a growing number of chemical poisoning cases are expected to drive global organic food market in the coming years," according to a report by TechSci Research.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
General Mills Inc63.60 USD1.02Rating
Hormel Foods Corp47.24 USD0.77Rating
Sprouts Farmers Market Inc26.30 USD2.26Rating

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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