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An updated edition of the Oct. 29, 2025 article.
The natural foods industry has undergone a remarkable transformation, shifting from a niche market to a mainstream powerhouse driven by rising consumer health consciousness and environmental awareness. Today, more than ever, consumers are prioritizing clean eating and ethical sourcing, fueling demand for natural and organic foods.
Central to this evolution is a heightened consumer preference for products that offer transparent sourcing and minimal processing. Organic, non-GMO (genetically modified organisms) and preservative-free options have become the standard, reflecting a broader trend toward healthier dietary choices. Governments worldwide are reinforcing this shift through stricter food labeling regulations, expanding the market and strengthening consumer trust.
Companies like The Hain Celestial Group, Inc. HAIN and Conagra Brands, Inc. CAG are responding to 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 poised for continued evolution through innovation and the expansion of 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 2,101.9 billion 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 United Natural Foods, Inc. UNFI, Beyond Meat, Inc. BYND, Vital Farms, Inc. VITL and General Mills, Inc. GIS.
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United Natural Foods serves as a cornerstone in the North American food distribution landscape, positioning itself as a primary architect for the growth of the natural and organic categories. UNFI has leveraged its extensive network to bridge the gap between emerging health-focused brands and a diversified base of more than 30,000 retail locations. By prioritizing higher margin natural and organic foods, UNFI is not merely acting as a logistics provider but is strategically pivoting its business model to capitalize on the sustained consumer demand for wellness-oriented products. This leadership is evidenced by the company's first-quarter fiscal 2026 performance, where the Natural segment saw robust 10.5% growth.
The company’s strategic initiatives are heavily focused on enhancing "speed-to-shelf" for innovative natural brands, ensuring that independent retailers can compete with larger chains through differentiated assortments. A primary example of this effort is the implementation of lean Kaizen workshops, which successfully reduced new item setup times at the Chesterfield, NH, distribution center. This operational efficiency directly supports emerging suppliers who are often the source of organic innovation, allowing their products to reach consumers faster. Furthermore, UNFI has ramped up operations at its new, highly automated distribution center in Sarasota, FL, specifically designed to handle the high demand for natural products in that region. By modernizing its infrastructure, UNFI is building a more resilient supply chain that can maintain the integrity and availability of organic goods.
Beyond third-party distribution, UNFI is aggressively investing in its private brand portfolio to provide value-conscious organic options for retailers. The appointment of a new private brand leader during the first quarter underscores the company's commitment to using these exclusive labels as a tool for retailer differentiation. These brands allow traditional grocers to offer competitive pricing on organic staples, which UNFI views as critical for helping customers succeed in a challenging economic climate. Coupled with the deployment of AI-based platforms like Relex to improve fill rates and reduce waste, UNFI is ensuring that its natural and organic offerings are not only high-quality but also consistently available on store shelves. These combined efforts in merchandising and technology reinforce this Zacks Rank #1 (Strong Buy) company’s role as a vital partner in the natural and organic space. You can see the complete list of today’s Zacks #1 Rank stocks here.
Beyond Meat is positioning itself as a key player in the natural and organic food category by pivoting its product portfolio toward clean-label standards and medical-grade nutritional profiles. To combat category-wide misinformation, the company is driving its innovation road map to deliver products with simple, limited ingredients that have earned prestigious accreditations from the American Heart Association and the American Diabetes Association. A cornerstone of this strategy is the "Beyond IV" platform, which utilizes heart-healthy avocado oil and has achieved significant taste and nutrition accolades by delivering high protein content with minimal saturated fat and zero cholesterol.
The company’s strategic initiatives in this sector are exemplified by the launch of the Beyond Ground platform and the Beyond Steak Filet. Beyond Ground represents a significant departure from traditional plant-based. It is a center-of-the-plate protein made with just four primary ingredients — water, fava bean protein, potato protein and psyllium husk. This product delivers 27 grams of protein and 4 grams of fiber per serving with no added oils. Furthermore, the company has opened the Beyond Test Kitchen, a direct-to-consumer platform that allows early adopters to trial these clean-ingredient innovations, such as the Tuscan Tomato and Korean Barbecue seasoned varieties, before they reach traditional retail shelves.
Beyond Meat is also refining its go-to-market strategy to prioritize retail and foodservice partners that align with its health-conscious branding. In U.S. retail, the company is consolidating its offerings into "brand blocks" within the frozen section to improve consumer awareness and choice. For example, a recent expansion with Walmart WMT increased the availability of select products to more than 2,000 stores. In the foodservice channel, the company is specifically targeting institutions and restaurant chains whose consumer bases value non-GMO, plant-based meats made from clean ingredients. By focusing on these high-impact segments and reducing investment in less health-focused areas, this Zacks Rank #2 (Buy) company aims to capture a higher percentage of the growing market for transparent and nutritionally dense plant-based foods.
Vital Farms has positioned itself as a central figure in the natural and organic food category by operationalizing a "Conscious Capitalism" stakeholder model that prioritizes animal welfare and sustainable agriculture. The company has disrupted traditional factory farming with its pasture-raised framework, which guarantees hens 108 square feet of open-air space. This commitment is validated by its status as a Certified B Corporation, meeting high verified standards for social and environmental performance. As of the third quarter of 2025, these efforts have successfully resonated with consumers, as evidenced by a rise in shell egg-aided brand awareness to 33%, up 8 percentage points since the third quarter of last year.
The company's strategic focus on the premium natural segment is exemplified by its diverse product portfolio, which includes shell eggs, liquid eggs, hard-boiled eggs and pasture-raised butter. In the third quarter of 2025, egg-related revenues were a primary driver of success, increasing to $192.6 million from $138.1 million in the prior-year period, fueled by high velocity and expanded distribution in more than 23,500 retail stores. While the butter segment faced some volatility due to trans-Atlantic supply chain issues, the overall brand remains strong. The shell egg household penetration reached 14.3 million households, while the shell egg buy rate climbed to $39.25 in the quarter. These concrete brand examples demonstrate Vital Farms’ ability to convert ethical farming practices into a scalable and highly sought-after consumer brand.
Vital Farms, which carries a Zacks Rank #3 (Hold), is executing a massive infrastructure expansion to support its goal of reaching $1 billion in net sales by 2027. A key initiative is the rapid scaling of its farm network, which grew to 575 family farms with more than 10 million hens under contract in the "pasture belt". To process this increasing volume, the company brought a third production line online at its Egg Central Station in Missouri in October 2025, raising its annual egg revenue capacity to approximately $1.2 billion. Looking further ahead, the construction of a new egg washing and packing facility in Seymour, IN, is on track to open in early 2027, which is expected to add another $900 million in annual revenue capacity.
General Mills has long positioned itself as a leader in the natural and organic sector, leveraging a diverse portfolio to meet evolving consumer demands for cleaner labels and sustainable options. As a central pillar of its "Remarkable Experience" framework, the company focuses on delivering superior products and compelling value to maintain its competitive edge. By integrating natural and organic offerings into its broader North America Retail strategy, General Mills aims to drive volume-driven organic net sales growth despite a volatile operating environment.
A primary strategic initiative in this category is the use of targeted innovation to enhance brand "remarkability" and consumer relevance. For instance, Annie’s, a flagship brand in the natural and organic portfolio, introduced "Super! Mac," a product designed to offer enhanced nutritional benefits while maintaining the brand's core appeal to health-conscious families. This focus on product superiority and innovation is expected to contribute to a projected 25% increase in sales from new products across the company's portfolio in fiscal 2026. These efforts are designed to improve household penetration by addressing specific consumer needs for quality and health.
General Mills is also navigating the natural and organic landscape through portfolio optimization and disciplined investment. While the company recently executed the divestiture of its North American yogurt business, it remains committed to accelerating growth in high-potential areas like pet nutrition and premium snacking. For example, the Blue Buffalo brand continues to be a cornerstone of the company’s natural offerings, with recent initiatives like the "Love Made Fresh" launch and the expansion of the Tiki Cat brand highlighting its push into premium, natural pet food segments. By driving efficiencies and reinvesting in these remarkable experiences, this Zacks Rank #3 company seeks to secure long-term, sustainable growth in the natural and organic market.
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This article originally published on Zacks Investment Research (zacks.com).
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