We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Natural Food Stocks to Gain Momentum as Health Trends Drive Demand
Read MoreHide Full Article
An updated edition of the Sep. 9, 2026 article.
Natural foods are gaining a stronger foothold in mainstream consumption as growing awareness of health, nutrition and environmental responsibility influences consumer preferences. Shoppers across different age groups and income levels are increasingly incorporating healthier food options into their daily diets, driving demand for natural and better-for-you products. This shift reflects a broader change in eating habits, with consumers placing greater importance on the nutritional value and overall quality of food. With growing preferences, companies operating in the natural food space stand to benefit from expanding market opportunities.
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.
Food-labeling regulations and government-backed health initiatives are providing additional support to the natural food market. Greater emphasis on product information and responsible business practices is encouraging companies to improve sourcing transparency, maintain high-quality standards and adopt environmentally sustainable production methods. Businesses that prioritize ethical supply chains and communicate their product attributes are better positioned to earn consumer trust. Consumers' willingness to spend more on foods perceived as nutritious, safe and sustainably produced creates opportunities for premium pricing, supporting revenue growth and profitability.
Companies like Sprouts Farmers Market, Inc. (SFM - 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.
General Mills is sharpening its focus on natural and organic food offerings as consumers increasingly look for products with simpler ingredients and better nutritional benefits. The company is strengthening its portfolio through product innovation and renovation, with particular emphasis on clean labels, protein and fiber. Its Annie’s brand remains among the key brands receiving increased innovation attention, alongside Cheerios and other established offerings. Under its Remarkability strategy, General Mills is working to improve product quality, packaging, brand communication and consumer value. These efforts reflect the company's broader push to align its offerings with changing food preferences while strengthening household penetration and distribution. The approach is expected to support long-term brand relevance and improve sales momentum.
General Mills is also strengthening its better-for-you offerings through innovation across its cereal and snacking portfolio. The successful launch of Honey Nut Cheerios Protein highlights its efforts to address growing consumer demand for protein-rich foods. The company's protein cereal portfolio, spanning Cheerios, Nature Valley and Ghost, generates approximately $200 million in retail sales and has been growing at a strong double-digit rate. Meanwhile, General Mills is reinforcing its Nature Valley brand internationally as part of its efforts to strengthen global brands. The company is also responding to changing ingredient preferences by removing certified colors from its cereal portfolio. Such initiatives help General Mills improve the appeal of its established products while giving consumers more nutritious choices at accessible prices.
Beyond product innovation, General Mills is supporting its natural and better-for-you food strategy through stronger marketing, distribution and operational improvements. This Zacks Rank #3 (Hold) company has brought in new agency partners, developed a next-generation content studio and doubled its use of influencers to improve consumer engagement. It is also expanding packaging flexibility through a new pack center designed to accelerate innovation and address evolving e-commerce needs. These initiatives are complemented by its Holistic Margin Management program and global Transformation initiative, which are expected to generate $750 million in savings during fiscal 2027. The savings should help fund brand investments and offset inflationary pressures. Together, these efforts position General Mills to respond more effectively to changing consumer preferences while supporting profitable growth over time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dole is well positioned to benefit from consumers' growing focus on health and wellness, supported by its broad portfolio of fresh fruits and vegetables and its presence in more than 85 countries. The company's product categories include bananas, pineapples, kiwi, avocados, cherries and berries, providing exposure to demand for fresh produce. Management noted that fresh-produce consumption remained resilient in the second quarter of 2026, supported by long-term health and wellness trends. Dole continues to invest in production, sourcing and distribution capabilities to strengthen its operations. Strong European banana volumes supported the Fresh Fruit segment during the quarter, although adverse weather constrained pineapple availability. The company's investments and diversified portfolio should help strengthen its position in the fresh-produce market.
This Zacks Rank #3 company is also strengthening its fresh-produce portfolio through categories such as kiwi, avocados, cherries and berries. In the second quarter of 2026, its Diversified Fresh Produce - Americas & ROW segment benefited from higher North American volumes of kiwi, avocados and cherries, while profitability improved with continued benefits from the restructuring of berry operations. The segment's strong performance helped offset pressures in the Fresh Fruit business, highlighting the benefits of Dole's diversified operations. The company is supporting its fresh-produce business through farming investments in Latin America and spending on blueberry and avocado packing equipment in Europe. These investments, along with improvements in distribution infrastructure, reflect Dole's focus on strengthening operational capabilities and supporting growth across its fresh-produce categories.
Dole is pairing its broad fresh-produce portfolio with strategic investments aimed at strengthening sourcing, distribution and operating efficiency. During the second quarter of 2026, the company completed a bolt-on acquisition in its Irish growing operations to strengthen its sourcing capabilities and supply base. In July, Dole also completed the acquisition of Greenfood Fresh Produce's division in Scandinavia, adding a modern distribution facility in Helsingborg, Sweden. Management plans to leverage this platform for further investments in automation, robotics and artificial intelligence to improve efficiency and strengthen relationships with key customers. The company has also been upgrading ripening facilities across Ireland, France and Spain. Together, these initiatives should support Dole's operational efficiency, strengthen its presence in core markets and create opportunities for long-term growth.
United Natural Foods is strengthening its position in the natural and organic food market as consumers increasingly seek healthier products and differentiated grocery offerings. The company's broad distribution capabilities and focus on natural, organic, fresh and specialty foods position it to capitalize on these preferences. In the fourth quarter of fiscal 2026, underlying sales in its Natural Products segment outperformed the broader market, supported by continued shopper demand. For fiscal 2026, the Natural Products segment recorded approximately 7% sales growth and 19% adjusted EBITDA growth, reflecting healthy demand and improved operating leverage. Management expects natural, organic and specialty products to continue growing faster than the broader market, reinforcing UNFI's focus on this category.
UNFI is strengthening its natural and organic offerings through private-brand innovation and merchandising initiatives designed to help retailers stand out. During fiscal 2026, the company introduced more than 130 new private-brand SKUs, including health-focused options while refreshing one of its core seafood brands in the fourth quarter to emphasize quality and value. These efforts are supported by enhanced merchandising and supplier programs that enable retailers to develop distinctive product assortments. UNFI is also adding AI-enabled features to its UNFI Insights platform, helping suppliers better assess store-level performance and improve demand planning. By combining product innovation with stronger supplier relationships, the company is helping grocery customers respond to changing preferences while creating opportunities for profitable growth in natural and specialty categories.
This Zacks Rank #3 company is also investing in distribution efficiency to support its growing natural and organic business. The company completed the rollout of its AI-powered inventory and procurement planning platform across its distribution network, helping improve inventory management and product availability. It also consolidated its Racine, WI, facility into an expanded, automated distribution center in Joliet, IL, as part of broader network modernization efforts. UNFI implemented Lean daily management practices across 44 distribution centers, contributing to improvements in fill rates, on-time deliveries and throughput. These initiatives are particularly important for natural products, which often involve greater assortment complexity and slower-moving items. Better inventory planning and more reliable deliveries should help UNFI serve retailers more effectively and support sustained category growth.
Image: Bigstock
Natural Food Stocks to Gain Momentum as Health Trends Drive Demand
An updated edition of the Sep. 9, 2026 article.
Natural foods are gaining a stronger foothold in mainstream consumption as growing awareness of health, nutrition and environmental responsibility influences consumer preferences. Shoppers across different age groups and income levels are increasingly incorporating healthier food options into their daily diets, driving demand for natural and better-for-you products. This shift reflects a broader change in eating habits, with consumers placing greater importance on the nutritional value and overall quality of food. With growing preferences, companies operating in the natural food space stand to benefit from expanding market opportunities.
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.
Food-labeling regulations and government-backed health initiatives are providing additional support to the natural food market. Greater emphasis on product information and responsible business practices is encouraging companies to improve sourcing transparency, maintain high-quality standards and adopt environmentally sustainable production methods. Businesses that prioritize ethical supply chains and communicate their product attributes are better positioned to earn consumer trust. Consumers' willingness to spend more on foods perceived as nutritious, safe and sustainably produced creates opportunities for premium pricing, supporting revenue growth and profitability.
Companies like Sprouts Farmers Market, Inc. (SFM - 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 General Mills, Inc. (GIS - Free Report) , Dole plc (DOLE - Free Report) and United Natural Foods, Inc. (UNFI - 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
General Mills is sharpening its focus on natural and organic food offerings as consumers increasingly look for products with simpler ingredients and better nutritional benefits. The company is strengthening its portfolio through product innovation and renovation, with particular emphasis on clean labels, protein and fiber. Its Annie’s brand remains among the key brands receiving increased innovation attention, alongside Cheerios and other established offerings. Under its Remarkability strategy, General Mills is working to improve product quality, packaging, brand communication and consumer value. These efforts reflect the company's broader push to align its offerings with changing food preferences while strengthening household penetration and distribution. The approach is expected to support long-term brand relevance and improve sales momentum.
General Mills is also strengthening its better-for-you offerings through innovation across its cereal and snacking portfolio. The successful launch of Honey Nut Cheerios Protein highlights its efforts to address growing consumer demand for protein-rich foods. The company's protein cereal portfolio, spanning Cheerios, Nature Valley and Ghost, generates approximately $200 million in retail sales and has been growing at a strong double-digit rate. Meanwhile, General Mills is reinforcing its Nature Valley brand internationally as part of its efforts to strengthen global brands. The company is also responding to changing ingredient preferences by removing certified colors from its cereal portfolio. Such initiatives help General Mills improve the appeal of its established products while giving consumers more nutritious choices at accessible prices.
Beyond product innovation, General Mills is supporting its natural and better-for-you food strategy through stronger marketing, distribution and operational improvements. This Zacks Rank #3 (Hold) company has brought in new agency partners, developed a next-generation content studio and doubled its use of influencers to improve consumer engagement. It is also expanding packaging flexibility through a new pack center designed to accelerate innovation and address evolving e-commerce needs. These initiatives are complemented by its Holistic Margin Management program and global Transformation initiative, which are expected to generate $750 million in savings during fiscal 2027. The savings should help fund brand investments and offset inflationary pressures. Together, these efforts position General Mills to respond more effectively to changing consumer preferences while supporting profitable growth over time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dole is well positioned to benefit from consumers' growing focus on health and wellness, supported by its broad portfolio of fresh fruits and vegetables and its presence in more than 85 countries. The company's product categories include bananas, pineapples, kiwi, avocados, cherries and berries, providing exposure to demand for fresh produce. Management noted that fresh-produce consumption remained resilient in the second quarter of 2026, supported by long-term health and wellness trends. Dole continues to invest in production, sourcing and distribution capabilities to strengthen its operations. Strong European banana volumes supported the Fresh Fruit segment during the quarter, although adverse weather constrained pineapple availability. The company's investments and diversified portfolio should help strengthen its position in the fresh-produce market.
This Zacks Rank #3 company is also strengthening its fresh-produce portfolio through categories such as kiwi, avocados, cherries and berries. In the second quarter of 2026, its Diversified Fresh Produce - Americas & ROW segment benefited from higher North American volumes of kiwi, avocados and cherries, while profitability improved with continued benefits from the restructuring of berry operations. The segment's strong performance helped offset pressures in the Fresh Fruit business, highlighting the benefits of Dole's diversified operations. The company is supporting its fresh-produce business through farming investments in Latin America and spending on blueberry and avocado packing equipment in Europe. These investments, along with improvements in distribution infrastructure, reflect Dole's focus on strengthening operational capabilities and supporting growth across its fresh-produce categories.
Dole is pairing its broad fresh-produce portfolio with strategic investments aimed at strengthening sourcing, distribution and operating efficiency. During the second quarter of 2026, the company completed a bolt-on acquisition in its Irish growing operations to strengthen its sourcing capabilities and supply base. In July, Dole also completed the acquisition of Greenfood Fresh Produce's division in Scandinavia, adding a modern distribution facility in Helsingborg, Sweden. Management plans to leverage this platform for further investments in automation, robotics and artificial intelligence to improve efficiency and strengthen relationships with key customers. The company has also been upgrading ripening facilities across Ireland, France and Spain. Together, these initiatives should support Dole's operational efficiency, strengthen its presence in core markets and create opportunities for long-term growth.
United Natural Foods is strengthening its position in the natural and organic food market as consumers increasingly seek healthier products and differentiated grocery offerings. The company's broad distribution capabilities and focus on natural, organic, fresh and specialty foods position it to capitalize on these preferences. In the fourth quarter of fiscal 2026, underlying sales in its Natural Products segment outperformed the broader market, supported by continued shopper demand. For fiscal 2026, the Natural Products segment recorded approximately 7% sales growth and 19% adjusted EBITDA growth, reflecting healthy demand and improved operating leverage. Management expects natural, organic and specialty products to continue growing faster than the broader market, reinforcing UNFI's focus on this category.
UNFI is strengthening its natural and organic offerings through private-brand innovation and merchandising initiatives designed to help retailers stand out. During fiscal 2026, the company introduced more than 130 new private-brand SKUs, including health-focused options while refreshing one of its core seafood brands in the fourth quarter to emphasize quality and value. These efforts are supported by enhanced merchandising and supplier programs that enable retailers to develop distinctive product assortments. UNFI is also adding AI-enabled features to its UNFI Insights platform, helping suppliers better assess store-level performance and improve demand planning. By combining product innovation with stronger supplier relationships, the company is helping grocery customers respond to changing preferences while creating opportunities for profitable growth in natural and specialty categories.
This Zacks Rank #3 company is also investing in distribution efficiency to support its growing natural and organic business. The company completed the rollout of its AI-powered inventory and procurement planning platform across its distribution network, helping improve inventory management and product availability. It also consolidated its Racine, WI, facility into an expanded, automated distribution center in Joliet, IL, as part of broader network modernization efforts. UNFI implemented Lean daily management practices across 44 distribution centers, contributing to improvements in fill rates, on-time deliveries and throughput. These initiatives are particularly important for natural products, which often involve greater assortment complexity and slower-moving items. Better inventory planning and more reliable deliveries should help UNFI serve retailers more effectively and support sustained category growth.