An updated edition of the Feb. 20, 2025 article.

Natural foods have moved well beyond the shelves of specialty stores and into the daily lives of consumers. What’s behind this shift? A growing awareness of health, wellness and environmental responsibility. Shoppers today, across all age groups, are seeking options that are not just nutritious but also produced with care for people and the planet. As a result, the natural foods industry is experiencing rapid growth. Clean ingredients, sustainable agriculture and ethical sourcing have become essential features of the modern food landscape.

More consumers are reaching for products that are transparent about their ingredients and made with minimal processing. Labels that read organic, non-GMO (genetically modified organisms) and preservative-free are gaining attention, and clean eating is no longer just a trend — it’s becoming the norm. Governments are also stepping in, tightening food labeling rules and promoting healthier eating habits. In turn, natural food brands are not only building stronger customer loyalty but are also successfully charging premium prices for products that deliver both trust and quality.

Companies like The Hain Celestial Group, Inc. HAIN, General Mills, Inc. GIS and Vital Farms, Inc. VITL 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, 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 United Natural Foods, Inc. UNFI, Sprouts Farmers Market, Inc. SFM and Beyond Meat, Inc. BYND.

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3 Natural Food Stocks to Watch

United Natural stands as a prominent player in the natural food sector, serving as one of the largest distributors of organic and natural products in North America. Through its extensive network, UNFI supplies a vast array of products, including fresh produce, pantry staples, dairy alternatives and plant-based foods. With its diverse portfolio, the company caters to both retail giants and independent natural food stores, meeting the growing demand for cleaner, healthier eating options. United Natural Foods has made a strategic shift by realigning its wholesale business into two product-centric divisions — one of which is solely dedicated to natural, organic, specialty and fresh products.

As the natural food industry continues to expand, UNFI is well-positioned to capitalize on the shift toward organic, non-GMO and ethically sourced products. Its wide-reaching distribution capabilities and strategic partnerships allow the company to provide an extensive selection of natural and organic foods that appeal to health-conscious consumers. The company’s natural business continues to outperform industry trends, driven by strong volume growth and enhanced supplier collaborations. UNFI’s natural products business has become a clear driver of overall performance, with sales increasing more than 8% in the last reported quarter. 

This Zacks Rank #2 (Buy) company is increasingly focusing on innovation and sustainability within the natural foods space. The company has committed to enhancing its supply-chain practices, reducing waste and supporting regenerative agriculture initiatives. UNFI is also working closely with suppliers to accelerate food innovation. Upgrades in automation and warehouse processes are leading to better order accuracy, less product waste and faster deliveries. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Sprouts Farmers has been at the forefront of the natural and organic food movement, catering to health-conscious consumers seeking fresh, high-quality and ethically sourced products. The company’s commitment to fresh, organic and attribute-driven products sets it apart. This strategic positioning not only resonates with a growing base of wellness-focused consumers but also aligns with broader food industry trends favoring transparency, sustainability and nutritional value.

A key element of SFM’s strategy is its innovative product development and sourcing initiatives. In 2024 alone, the company introduced approximately 7,100 new items, including more than 300 under its private-label Sprouts Brand. Notable offerings include organic grass-fed meatballs, pasture-raised poultry and globally inspired Sprouts-branded items, such as Moroccan and al pastor-flavored chickpeas. These exclusive, trend-forward products cater to the evolving preferences of health-conscious consumers. The launch of its “Real Root” premium health and beauty line further reinforces the brand’s holistic approach to wellness, expanding its influence beyond the food aisle.

In addition to product innovation, this Zacks Rank #2 company excelled at enhancing customer engagement through strategic merchandising events and effective marketing campaigns. Seasonal events like the Summer Cherry Festival shine a spotlight on fresh, specialty items and educate consumers on better-for-you choices. This approach not only drove strong traffic across its channels but also contributed to its robust e-commerce growth, surpassing $1 billion in sales in 2024. 

Beyond Meat has strategically realigned its product innovation to strengthen its appeal among health-conscious and natural-food-seeking consumers. A standout development in this direction is the launch of Beyond IV and the extended Beyond Steak line. These new offerings have been designed not only to deliver flavor and texture improvements but also to meet heightened consumer expectations around nutrition and ingredient transparency. These products have earned accreditations from respected health organizations, including the American Heart Association, American Diabetes Association and Clean Label Project.

Internationally, Beyond Meat’s health-focused positioning is finding resonance, particularly in markets like France, where a sizable portion of the population is actively reducing meat consumption. The launch of Beyond Steak in French retail builds on a robust lineup already in-market, including Beyond Mince and Beyond Sausage, all tailored to health-conscious consumers. 

This Zacks Rank #2 company has taken a proactive stance, using nutritional credentials and transparent messaging to reposition its products as a better-for-you choice. By doubling down on natural and functional food innovation, the brand is not only aiming to win over skeptical customers but also elevate its products to a new standard that aligns more closely with organic and wellness-oriented trends in the food industry.

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General Mills, Inc. (GIS) : Free Stock Analysis Report

The Hain Celestial Group, Inc. (HAIN) : Free Stock Analysis Report

United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report

Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report

Beyond Meat, Inc. (BYND) : Free Stock Analysis Report

Vital Farms, Inc. (VITL) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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