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Natural Food Stocks to Watch as Clean-Label Demand Accelerates
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Natural food products have moved beyond a niche category and are becoming a larger part of everyday consumer spending. Growing attention to health, nutrition and sustainability is encouraging consumers across demographics to favor foods that support healthier lifestyles. This broadening demand creates a favorable backdrop for companies exposed to natural and better-for-you categories.
Ingredient quality and transparency now play a greater role in purchase decisions. Shoppers are paying closer attention to labels and increasingly favoring recognizable ingredients, minimal processing and attributes such as organic, non-GMO and preservative-free formulations. This suggests clean-label demand is becoming more durable, creating opportunities for manufacturers and retailers to strengthen their portfolios with differentiated products that better match evolving expectations around nutrition, simplicity and transparency.
Stronger food-labeling standards and public health initiatives are supporting the natural food category. Companies that emphasize transparent sourcing, product quality, ethical supply chains and sustainable production can strengthen brand credibility and customer loyalty. These advantages may also support premium pricing, as consumers show willingness to pay more for products they view as healthier, safer and responsibly produced.
Companies like Natural Grocers by Vitamin Cottage, Inc. (NGVC - Free Report) and The Kroger Co. (KR - Free Report) are fortifying their competitive positions by broadening product assortments, expanding private-label offerings and improving access to natural and organic foods. Strong sourcing capabilities and differentiated merchandising can help these companies capture a larger share of health-focused consumer spending while supporting customer retention and basket growth.
Future industry growth is likely to be shaped by product innovation and broader distribution. Investment in plant-based foods, functional nutrition, sustainable agriculture and digital commerce is enabling companies to reach new customer groups and respond more quickly to changing preferences. The expansion of online grocery platforms and convenient fulfillment options is also reducing barriers to purchase, making specialty products such as organic, gluten-free and nutrient-enhanced foods more accessible to a wider consumer base. The global healthy foods industry is expected to reach $1.25 trillion in 2026. By 2034, the market is forecast to expand to approximately $2.34 trillion, reflecting a compound annual growth rate of 8.2% over 2026-2034.
If you're looking to capitalize on this trend, our Natural Foods Screen makes it easy to identify high-potential stocks such as Dole plc (DOLE - Free Report) , United Natural Foods, Inc. (UNFI - Free Report) and Sprouts Farmers Market, Inc. (SFM - Free Report) .
Dole plc is well positioned to benefit from the growing consumer focus on health, wellness and fresh food, supported by its broad portfolio of fruits and vegetables sold across more than 85 countries. The company’s offerings, including bananas, pineapples, kiwi, avocados, cherries and berries, give it direct exposure to demand for nutritious foods. Management noted that fresh-produce consumption remained resilient in the second quarter of 2026, supported by long-term health and wellness trends. Dole is reinforcing this position through investments in production, sourcing and distribution capabilities. Strong European banana volumes provided support during the quarter, although adverse weather constrained pineapple availability. These initiatives highlight Dole’s focus on strengthening its fresh-produce platform while improving supply reliability and positioning the business to capture sustained consumer interest in healthier food choices.
Dole is also broadening its natural-food exposure through a diversified produce portfolio that includes kiwi, avocados, cherries and berries. In the second quarter, Diversified Fresh Produce Americas & ROW benefited from higher volumes of kiwi, avocados and cherries, while profitability improved with continued benefits from the restructuring of berry operations. This mix reduces dependence on bananas and pineapples and gives Dole more ways to participate in demand for fresh, health-oriented foods. The company is supporting these categories with farming investments in Latin America and spending on blueberry and avocado packing equipment in Europe. Such investments improve handling, capacity and efficiency around perishable products, helping Dole strengthen execution across categories while preserving the freshness and availability that underpin its consumer proposition.
This Zacks Rank #2 (Buy) company is pairing its fresh-produce portfolio with investments designed to strengthen sourcing and distribution over time. The company completed a bolt-on acquisition in its Irish growing operations to expand sourcing capabilities and its supply base, while the acquisition of Greenfood Fresh Produce in Scandinavia added a distribution facility in Helsingborg. Management plans to use that platform for automation, robotics and artificial-intelligence investments, aiming to improve efficiency and service for customers. Dole has also been upgrading ripening facilities across Ireland, France and Spain. Together, these initiatives reinforce the infrastructure behind its fresh-food offering and support growth in core markets. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United Natural Foods is strengthening its position in natural and organic food as shoppers look for healthier, differentiated products and retailers use those choices to stand apart from mass and discount competitors. Management said natural and organic grocers, smaller chains and independents form part of UNFI’s roughly $90 billion target market. This demand is showing up in results: underlying sales in the Natural Products segment outperformed the broader market in the fourth quarter, supported by shopper interest in natural, organic, fresh and specialty products. For fiscal 2026, management said Natural Products sales grew about 7%, while EBITDA increased 19%. UNFI expects natural, organic and specialty products to continue growing faster than both the broader market and its overall portfolio.
Product innovation is another part of UNFI’s natural and organic strategy. During fiscal 2026, the company introduced more than 130 new private-brand SKUs, including a variety of health-forward products designed to help retail customers differentiate their assortments and respond to changing shopper preferences. UNFI also refreshed one of its core seafood brands in the fourth quarter, emphasizing a combination of quality and value. Beyond product launches, the company is expanding merchandising and supplier-support programs that help retailers create distinctive product mixes. It has also added AI-enabled features to the UNFI Insights platform, giving suppliers better store-level performance information and supporting improved demand planning. Together, these initiatives can help natural and organic suppliers reach shoppers more effectively while strengthening retailer differentiation.
This Zacks Rank #3 (Hold) company is also investing in the supply-chain capabilities needed to support growth in natural and organic foods, where assortments often include more innovation and slower-moving SKUs. UNFI completed the rollout of its AI-powered planning platform across all distribution centers to improve inventory management and fill rates, while Lean daily management reached 44 facilities. It also consolidated operations from Racine, WI, into an expanded Joliet, IL, distribution center with full-case automation. Management views availability as a major opportunity in natural products and is using technology to understand demand, promotions and ordering patterns more accurately.
Sprouts Farmers has built its business around making natural, organic and better-for-you products accessible to a broader consumer base, positioning itself as a differentiated retailer in the healthy grocery space. Fresh produce remains at the center of its merchandising strategy, complemented by a growing assortment of organic, plant-based and gluten-free products designed to meet evolving consumer preferences. During the second quarter of 2026, management emphasized that its attribute-based assortment continued to resonate with shoppers despite a cautious spending environment. Organic products now account for more than 30% of total sales, while organic penetration exceeds 50% in the dairy and produce categories, highlighting the strength of the company’s natural and organic positioning. The Sprouts private-label brand also continued to outperform the broader business, contributing 26% of quarterly sales and reinforcing customer loyalty through differentiated, health-focused offerings.
Sprouts is sustaining its leadership in natural foods through continuous product innovation and exclusive brand partnerships. The company introduced approximately 1,300 new products during the second quarter, prioritizing attributes that resonate with wellness-focused consumers, including organic, seed oil-free, fiber-rich, gut-health and protein-oriented offerings. Exclusive products such as Pasturebird chicken, now available nationwide across Sprouts stores, alongside emerging brands like Better Than Pop and Soup Salt Shots, strengthen the retailer’s differentiated assortment. Management is also expanding healthy meal solutions through fresh deli offerings, $9.99 wellness bowls, affordable family meals and innovative Sprouts-branded products, including seed oil-free frozen potatoes and fresh organic sourdough bread. These initiatives are intended to combine affordability with product innovation, helping consumers maintain healthier eating habits without compromising value.
Beyond merchandising, this Zacks Rank #3 company is investing in capabilities that strengthen its natural and organic ecosystem over the long term. The company continues to expand its loyalty and personalization platform, using first-party customer data to tailor promotions, improve product discovery and enhance marketing effectiveness. Supply-chain investments are also supporting its natural food strategy, with the Northern California distribution center now operational and nearly 85% of stores receiving fresh meat through Sprouts-operated distribution centers, improving freshness, service levels and cost efficiency. Management is extending self-distribution beyond produce and meat to selected Sprouts-brand products. Its aggressive store expansion program will broaden access to its natural and organic assortment. Together, these initiatives position Sprouts to deepen customer engagement, improve execution and support sustainable growth in the health-focused grocery market.
Image: Bigstock
Natural Food Stocks to Watch as Clean-Label Demand Accelerates
Natural food products have moved beyond a niche category and are becoming a larger part of everyday consumer spending. Growing attention to health, nutrition and sustainability is encouraging consumers across demographics to favor foods that support healthier lifestyles. This broadening demand creates a favorable backdrop for companies exposed to natural and better-for-you categories.
Ingredient quality and transparency now play a greater role in purchase decisions. Shoppers are paying closer attention to labels and increasingly favoring recognizable ingredients, minimal processing and attributes such as organic, non-GMO and preservative-free formulations. This suggests clean-label demand is becoming more durable, creating opportunities for manufacturers and retailers to strengthen their portfolios with differentiated products that better match evolving expectations around nutrition, simplicity and transparency.
Stronger food-labeling standards and public health initiatives are supporting the natural food category. Companies that emphasize transparent sourcing, product quality, ethical supply chains and sustainable production can strengthen brand credibility and customer loyalty. These advantages may also support premium pricing, as consumers show willingness to pay more for products they view as healthier, safer and responsibly produced.
Companies like Natural Grocers by Vitamin Cottage, Inc. (NGVC - Free Report) and The Kroger Co. (KR - Free Report) are fortifying their competitive positions by broadening product assortments, expanding private-label offerings and improving access to natural and organic foods. Strong sourcing capabilities and differentiated merchandising can help these companies capture a larger share of health-focused consumer spending while supporting customer retention and basket growth.
Future industry growth is likely to be shaped by product innovation and broader distribution. Investment in plant-based foods, functional nutrition, sustainable agriculture and digital commerce is enabling companies to reach new customer groups and respond more quickly to changing preferences. The expansion of online grocery platforms and convenient fulfillment options is also reducing barriers to purchase, making specialty products such as organic, gluten-free and nutrient-enhanced foods more accessible to a wider consumer base. The global healthy foods industry is expected to reach $1.25 trillion in 2026. By 2034, the market is forecast to expand to approximately $2.34 trillion, reflecting a compound annual growth rate of 8.2% over 2026-2034.
If you're looking to capitalize on this trend, our Natural Foods Screen makes it easy to identify high-potential stocks such as Dole plc (DOLE - Free Report) , United Natural Foods, Inc. (UNFI - Free Report) and Sprouts Farmers Market, Inc. (SFM - Free Report) .
Explore 40 cutting-edge investment themes with Zacks Thematic Investing Screens and uncover your next big opportunity.
3 Natural Food Stocks to Watch
Dole plc is well positioned to benefit from the growing consumer focus on health, wellness and fresh food, supported by its broad portfolio of fruits and vegetables sold across more than 85 countries. The company’s offerings, including bananas, pineapples, kiwi, avocados, cherries and berries, give it direct exposure to demand for nutritious foods. Management noted that fresh-produce consumption remained resilient in the second quarter of 2026, supported by long-term health and wellness trends. Dole is reinforcing this position through investments in production, sourcing and distribution capabilities. Strong European banana volumes provided support during the quarter, although adverse weather constrained pineapple availability. These initiatives highlight Dole’s focus on strengthening its fresh-produce platform while improving supply reliability and positioning the business to capture sustained consumer interest in healthier food choices.
Dole is also broadening its natural-food exposure through a diversified produce portfolio that includes kiwi, avocados, cherries and berries. In the second quarter, Diversified Fresh Produce Americas & ROW benefited from higher volumes of kiwi, avocados and cherries, while profitability improved with continued benefits from the restructuring of berry operations. This mix reduces dependence on bananas and pineapples and gives Dole more ways to participate in demand for fresh, health-oriented foods. The company is supporting these categories with farming investments in Latin America and spending on blueberry and avocado packing equipment in Europe. Such investments improve handling, capacity and efficiency around perishable products, helping Dole strengthen execution across categories while preserving the freshness and availability that underpin its consumer proposition.
This Zacks Rank #2 (Buy) company is pairing its fresh-produce portfolio with investments designed to strengthen sourcing and distribution over time. The company completed a bolt-on acquisition in its Irish growing operations to expand sourcing capabilities and its supply base, while the acquisition of Greenfood Fresh Produce in Scandinavia added a distribution facility in Helsingborg. Management plans to use that platform for automation, robotics and artificial-intelligence investments, aiming to improve efficiency and service for customers. Dole has also been upgrading ripening facilities across Ireland, France and Spain. Together, these initiatives reinforce the infrastructure behind its fresh-food offering and support growth in core markets. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United Natural Foods is strengthening its position in natural and organic food as shoppers look for healthier, differentiated products and retailers use those choices to stand apart from mass and discount competitors. Management said natural and organic grocers, smaller chains and independents form part of UNFI’s roughly $90 billion target market. This demand is showing up in results: underlying sales in the Natural Products segment outperformed the broader market in the fourth quarter, supported by shopper interest in natural, organic, fresh and specialty products. For fiscal 2026, management said Natural Products sales grew about 7%, while EBITDA increased 19%. UNFI expects natural, organic and specialty products to continue growing faster than both the broader market and its overall portfolio.
Product innovation is another part of UNFI’s natural and organic strategy. During fiscal 2026, the company introduced more than 130 new private-brand SKUs, including a variety of health-forward products designed to help retail customers differentiate their assortments and respond to changing shopper preferences. UNFI also refreshed one of its core seafood brands in the fourth quarter, emphasizing a combination of quality and value. Beyond product launches, the company is expanding merchandising and supplier-support programs that help retailers create distinctive product mixes. It has also added AI-enabled features to the UNFI Insights platform, giving suppliers better store-level performance information and supporting improved demand planning. Together, these initiatives can help natural and organic suppliers reach shoppers more effectively while strengthening retailer differentiation.
This Zacks Rank #3 (Hold) company is also investing in the supply-chain capabilities needed to support growth in natural and organic foods, where assortments often include more innovation and slower-moving SKUs. UNFI completed the rollout of its AI-powered planning platform across all distribution centers to improve inventory management and fill rates, while Lean daily management reached 44 facilities. It also consolidated operations from Racine, WI, into an expanded Joliet, IL, distribution center with full-case automation. Management views availability as a major opportunity in natural products and is using technology to understand demand, promotions and ordering patterns more accurately.
Sprouts Farmers has built its business around making natural, organic and better-for-you products accessible to a broader consumer base, positioning itself as a differentiated retailer in the healthy grocery space. Fresh produce remains at the center of its merchandising strategy, complemented by a growing assortment of organic, plant-based and gluten-free products designed to meet evolving consumer preferences. During the second quarter of 2026, management emphasized that its attribute-based assortment continued to resonate with shoppers despite a cautious spending environment. Organic products now account for more than 30% of total sales, while organic penetration exceeds 50% in the dairy and produce categories, highlighting the strength of the company’s natural and organic positioning. The Sprouts private-label brand also continued to outperform the broader business, contributing 26% of quarterly sales and reinforcing customer loyalty through differentiated, health-focused offerings.
Sprouts is sustaining its leadership in natural foods through continuous product innovation and exclusive brand partnerships. The company introduced approximately 1,300 new products during the second quarter, prioritizing attributes that resonate with wellness-focused consumers, including organic, seed oil-free, fiber-rich, gut-health and protein-oriented offerings. Exclusive products such as Pasturebird chicken, now available nationwide across Sprouts stores, alongside emerging brands like Better Than Pop and Soup Salt Shots, strengthen the retailer’s differentiated assortment. Management is also expanding healthy meal solutions through fresh deli offerings, $9.99 wellness bowls, affordable family meals and innovative Sprouts-branded products, including seed oil-free frozen potatoes and fresh organic sourdough bread. These initiatives are intended to combine affordability with product innovation, helping consumers maintain healthier eating habits without compromising value.
Beyond merchandising, this Zacks Rank #3 company is investing in capabilities that strengthen its natural and organic ecosystem over the long term. The company continues to expand its loyalty and personalization platform, using first-party customer data to tailor promotions, improve product discovery and enhance marketing effectiveness. Supply-chain investments are also supporting its natural food strategy, with the Northern California distribution center now operational and nearly 85% of stores receiving fresh meat through Sprouts-operated distribution centers, improving freshness, service levels and cost efficiency. Management is extending self-distribution beyond produce and meat to selected Sprouts-brand products. Its aggressive store expansion program will broaden access to its natural and organic assortment. Together, these initiatives position Sprouts to deepen customer engagement, improve execution and support sustainable growth in the health-focused grocery market.