An updated edition of the July 15, 2025 article.

The natural foods industry has grown from a niche market into a mainstream sector, thanks to increased health awareness and environmental concern among consumers. With a rising emphasis on clean eating, sustainability and ethical sourcing, natural and organic food products have quickly gained popularity. As consumers look for products that support their health goals, ethical farming practices and environmentally friendly production methods have become key parts of the natural food movement.

Consumers are shifting toward products that provide transparency in sourcing and minimal processing. Shoppers closely examine ingredient labels, preferring organic, non-GMO (genetically modified organisms) and preservative-free options. Governments around the world are also encouraging clean eating and implementing stricter food labeling regulations, which further boost market growth. Consequently, natural food companies are experiencing increased brand loyalty and the ability to charge premium prices.

Companies like General Mills, Inc. (GIS Quick QuoteGIS - Free Report) and Beyond Meat, Inc. (BYND Quick QuoteBYND - Free Report) 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 The Hain Celestial Group, Inc. (HAIN Quick QuoteHAIN - Free Report) , Vital Farms, Inc. (VITL Quick QuoteVITL - Free Report) , Sprouts Farmers Market, Inc. (SFM Quick QuoteSFM - Free Report) and United Natural Foods, Inc. (UNFI Quick QuoteUNFI - Free Report) .

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4 Natural Food Stocks to Watch

Hain Celestial has positioned itself as a pioneer in the natural and organic food space — a space that continues to outpace traditional packaged goods in consumer demand. The company’s brand portfolio spans several high-growth segments, including infant nutrition, snacks and beverages, each designed to meet the rising consumer interest in “better-for-you” choices. Brands like Earth’s Best, Ella’s Kitchen, Celestial Seasonings and Garden Veggie contribute toward Hain’s mission of delivering products that align with growing consumer demand for clean labels, functional benefits and sustainable choices.

In infant and kids’ nutrition, Hain Celestial is leaning on flagship brands such as Earth’s Best and Ella’s Kitchen to strengthen its market share. Earth’s Best formula, while pressured by prior-year comparisons, has shown double-digit consumption growth, with supporting momentum in Earth’s Best snacks and cereals posting high single-digit and high-teen dollar sales growth, respectively. Ella’s Kitchen also gained share in its core wet baby food category, reflecting the strength of its positioning in natural, organic formats. These results underscore Hain’s efforts to simplify SKUs while doubling down on brands that can deliver consistent growth and consumer loyalty.

This Zacks Rank #3 (Hold) company’s beverage and snack portfolios reflect its broader innovation. In beverages, Joya, its non-dairy brand, is gaining share with high single-digit consumption growth, while Celestial Seasonings tea returned to positive consumption trends after early season disruptions. On the snack side, though Garden Veggie underperformed expectations due to promotional inefficiencies and execution challenges, the company is investing in new flavor innovation and enhanced marketing to rebuild velocities. Management emphasized five key drivers to reignite growth, including portfolio simplification, innovation acceleration, pricing discipline, operational productivity and digital capability expansion. These initiatives are expected to sharpen Hain’s competitiveness and reinforce its standing in the natural and organic category. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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, as evidenced by record-high brand awareness of 31% and steadily rising household penetration.

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, up 50 farms since the first quarter of 2025, 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 #3 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 tied to 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.

Sprouts Farmers has carved out a unique leadership role in the natural and organic grocery segment by consistently aligning its operations with the needs of health-conscious consumers. In its last reported quarter, the company emphasized its differentiated assortment of fresh, local and innovative products that resonate with shoppers seeking healthier alternatives. Unlike conventional grocers, Sprouts Farmers has built a reputation for making organic and natural foods approachable, both in price and accessibility, through strategically designed store formats and merchandising strategies. This positions Sprouts Farmers not only as a retailer but also as a lifestyle brand for customers looking to integrate natural and organic foods into their daily routines.

A key driver of Sprouts Farmers’ strategy is its robust focus on innovation and private label development. The company plans to launch more than 350 new Sprouts Brand products in 2025, many of which emphasize high-demand attributes such as organic certification, no seed oils and high-protein formulations. These products complement broader category growth, with organic items now representing nearly one-third of total sales and more than 50% of produce sales, reflecting the strength of Sprouts Farmers’ “organic first” merchandising approach.

This Zacks Rank #3 company is investing in infrastructure and customer engagement to strengthen its role in natural and organic foods. Supply-chain initiatives, such as expanded self-distribution in categories like meat and seafood, are designed to improve freshness, reduce risk and create scalable growth capacity. At the same time, the rollout of the Sprouts Rewards loyalty program underscores its push toward deeper personalization and data-driven customer relationships. Early results from pilot markets show loyalty members shop more frequently and spend more, indicating that the program could be a major comp driver. With strong e-commerce growth, led by platforms such as Instacart, Uber Eats, DoorDash and shop.sprouts.com, Sprouts Farmers is positioning itself as a leader in natural and organic foods while boosting efficiency and digital engagement.

United Natural remains committed to advancing the natural and organic food movement through its expansive wholesale distribution network and strategic partnerships. The company’s efforts are centered on supporting a wide range of retailers with differentiated products that cater to the growing demand for natural, organic, specialty and ethnic offerings. During the latest quarter, UNFI’s Wholesale Natural Products segment delivered 12% sales growth, outpacing the broader food industry and reflecting increased category penetration among existing customers. This momentum underscores UNFI’s role as a key partner for retailers aiming to expand their footprint in health-focused and attribute-driven food categories.

To further strengthen its leadership in natural and organic foods, UNFI continues to leverage its scale and supply-chain capabilities to support customer growth in new and emerging markets. The company’s focus on helping retailers expand into additional categories has driven steady volume gains, with approximately half of its recent growth attributed to new business wins. Beyond simply broadening product assortments, UNFI has emphasized operational excellence, streamlining its processes through Lean Daily Management across 20 distribution centers. This initiative has already delivered tangible benefits, such as improved fill rates, reduced shrink and enhanced service levels — all crucial factors in ensuring that fresh, and high-quality natural and organic products reach consumers efficiently.

United Natural’s roadmap remains focused on optimizing its network and deepening its customer partnerships. The company’s efforts to refine its supply chain, reduce waste and enhance working capital efficiency align with its broader goal of being the most effective and value-creating partner in the natural and organic food industry. With continued investments in technology, infrastructure and innovation, this Zacks Rank #3 company is well-positioned to support the evolving needs of retailers and meet the growing consumer demand for clean, sustainable and health-conscious food choices.