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An updated edition of the Aug. 26, 2025 article.
The shift of the natural foods industry from a small, fringe market to a mainstream powerhouse is directly fueled by a massive spike in consumer awareness concerning both personal health and environmental impact. As people prioritize clean eating, ethical sourcing and sustainability, natural and organic products are becoming the default choice. This movement is all about transparency. Shoppers are digging into ingredient labels, actively seeking minimally processed foods that are certified organic or non-GMO, effectively turning farming practices and production methods into major selling points.
This growing consumer preference is being cemented by supportive government action worldwide, with stricter food labeling regulations further encouraging the move away from heavily processed fare. For the businesses operating in this space, this trend translates directly into increased brand loyalty and the desirable ability to charge premium prices for products that meet these high modern standards.
Companies like The Hain Celestial Group, Inc. (HAIN) and Beyond Meat, Inc. (BYND) are responding to the rising demand for organic, clean-label and ethically sourced foods. With consumers prioritizing transparency, sustainability and minimal processing, the market for natural foods continues to grow. Expanding farm networks, plant-based innovations and a focus on humane and eco-friendly production are shaping the industry's future.
The natural foods industry is set to evolve with continuous innovation and expanding product categories. Companies are investing in plant-based alternatives, functional foods enriched with vitamins and probiotics and sustainable farming technologies. E-commerce is also playing a crucial role in making natural foods more accessible, allowing consumers to shop for organic and gluten-free products with ease. The global healthy foods market is expected to reach $2.26 trillion by 2035.
If you're looking to capitalize on this trend, our Natural Foods Screen makes it easy to identify high-potential stocks such as Vital Farms, Inc. VITL, United Natural Foods, Inc. UNFI and Conagra Brands, Inc. CAG.
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Vital Farms has carved out a strong position in the natural and organic food category by leaning into its mission-driven brand identity and ethical farming practices. Unlike conventional producers, the company emphasizes transparency and integrity, which resonate with a growing consumer base that values animal welfare, sustainability and high-quality nutrition. Its core business, pasture-raised eggs, has become synonymous with the broader “conscious consumer” movement, making Vital Farms a trusted name in natural and organic foods. This focus on premium, ethically sourced products has resonated strongly with consumers.
The company is scaling its supply chain to meet surging consumer demand without compromising quality. Vital Farms now works with more than 500 family farms and has more than 9 million hens under contract. These partnerships allow the company to expand responsibly while preserving its pasture-raised standards. To support this growth, Vital Farms is investing heavily in infrastructure, including a third production line at Egg Central Station in Springfield (boosting capacity by 30%) and the simultaneous installation of two production lines at its new Seymour, IN, facility. These investments ensure supply keeps pace with demand while reducing logistics inefficiencies, such as through new co-located cold storage.
This Zacks Rank #1 (Strong Buy) company continues to drive growth through innovation, retail expansion and culturally relevant marketing. Distribution now spans more than 23,500 retail stores nationwide, with the company emphasizing shelf-space growth and product diversification rather than only pursuing new retail doors. At the same time, creative campaigns like its collaboration with FX’s The Bear demonstrate its ability to engage consumers beyond the grocery aisle. Even as private-label pasture-raised eggs expand, Vital Farms’ branded sales continue to outpace category growth, showing that its premium positioning commands loyalty rather than losing share to cheaper alternatives. This blend of supply-side scaling and demand-side brand building positions Vital Farms to achieve its goal of $1 billion in net revenues by 2027. You can see the complete list of today’s Zacks #1 Rank stocks here.
United Natural Foods is strengthening its leadership position as the nation’s leading distributor of natural, organic and specialty foods. The company’s role in shaping this high-growth segment remains central to its “refresh strategy,” which aims to create long-term value across a $90 billion addressable market. With its deep heritage in the natural and organic channel, UNFI serves as a critical bridge between emerging suppliers and large retailers, uniquely positioned to help both groups capitalize on growing consumer demand for healthier, cleaner and more transparent food options.
UNFI’s strategy centers around strengthening its merchandising capabilities and supplier partnerships to accelerate innovation in natural categories. In fiscal 2025, its Natural segment grew 9%, outpacing broader market trends as it expanded offerings for both independent and conventional customers. This Zacks Rank #1 company restructured its sales and merchandising teams to better align with customer needs across natural, organic, specialty, fresh and conventional product sets. It also launched a revamped commercial go-to-market program that streamlines supplier fees and offers proprietary insights to help natural and organic brands expand within its vast retail network.
Complementing its distribution and category leadership, UNFI is also advancing technological and digital tools to amplify supplier success. Initiatives like the UNFI Media Network, electronic shelf labels and category management services are enabling data-driven decisions. These investments, alongside lean operations and automation in facilities such as Manchester, PA, and Sarasota, FL, are designed to improve product availability and reduce waste. As UNFI progresses through fiscal 2026, management expects its stronghold in natural and organic foods to remain a key profit lever, with continued emphasis on innovation, emerging brand incubation and supply-chain modernization.
Conagra Brands is modernizing its portfolio to meet consumer demand for more natural, convenient and high-quality foods. While traditionally known for its frozen and shelf-stable categories, Conagra has strategically woven natural and clean-label innovation into its core. CEO Sean Connolly emphasized that innovation remains central to revitalizing consumption trends, with growth driven by “Frozen and Snacks” — categories increasingly shaped by wellness-driven reformulations and premium natural positioning.
In the frozen aisle, CAG is introducing more natural, high-protein and minimally processed meals. Recent launches like the Dolly Parton Frozen Meals and Desserts are designed with premium ingredients and positioned to attract consumers seeking both indulgence and authenticity. The company’s Healthy Choice and Birds Eye brands continue to anchor its presence in natural frozen foods, offering plant-forward and lower-sodium options. These innovations are supported by investments in supply-chain reliability — reaching 98% service levels — ensuring that CAG can meet growing demand for its healthier frozen offerings without disruption.
Beyond frozen, Conagra’s snack portfolio also reflects its natural-food ambitions. For example, the Slim Jim and Duke’s lines are evolving with clean-label claims. Management’s strategy to drive volume through innovation while maintaining pricing discipline positions Conagra to expand its reach within the natural and better-for-you segments of traditional grocery. As this Zacks Rank #3 (Hold) company improves efficiency and reclaims merchandising momentum, its focus on blending convenience, authenticity and quality ingredients is likely to sustain growth in the natural and organic spectrum.
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This article originally published on Zacks Investment Research (zacks.com).
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