10 Best Organic Food Stocks To Invest In

Published June 10, 2022 at 9:02 am EDT Updated August 19, 2026 at 8:00 am EDT

In this article, we will look at 10 best organic food stocks to invest in.

The organic food industry is an emerging and rapidly growing industry in the United States and internationally. Environmental and health-related concerns are pushing the world toward making healthier life choices. Global consumer adoption of organic food products is growing as rising awareness around organic food and its health benefits are realized by consumers. According to a report by ResearchDive, the global organic food market size was valued at $168.5 billion in 2021 and is projected to reach $484 billion by 2030, growing at a compound annual growth rate of 11.7% over the forecasted period. The report found that the North American region is expected to grow the most, at a CAGR of 12.7% over the forecasted period. This is primarily due to the presence of retail giants such as Costco Wholesale Corporation (NASDAQ:COST), Walmart Inc. (NYSE:WMT), and The Kroger Co. (NYSE:KR) which are offering various organic food products on their platforms amid the rising demand of healthier food choices.

Growth Drivers For The Organic Food Industry

Mordor Intelligence cited various factors that are expected to drive the growth of the organic food industry in their Organic Food and Beverages Outlook 2021. Among prominent catalysts for the organic food industry is an increasing awareness of physical health which is pushing consumers to make healthy food choices. Organic and plant-based meat is expected to play a major role in the growth of the organic food industry. Further adding to this growth are government initiatives regarding organic food certifications to ensure food quality and safety.

Mordor Intelligence found the fastest-growing region in the organic food market to be the Asia Pacific, highlighting India and China to be major producers of organic food products. The report cited primary growth drivers for the region to be increasing consumer awareness related to the health benefits of organic food and beverages and advancements in biological farming techniques. According to the National Bureau of Statistics of China, the per capita consumption of organic fruits and vegetables came in at 105.4 kilograms in 2021. In India, the production of fruits was found to be 99.07 million metric tons and for vegetables, this number was estimated at 191.77 million metric tons in 2021.

The organic food industry is providing an attractive entry point for investors, owing to its upside potential and rapid developments. Some of the largest retailers in the world such as Costco Wholesale Corporation, Walmart Inc., and The Kroger Co. are offering premium and high-end organic products to meet increasing consumer demands.

Photo by Kenny Eliason on Unsplash

Our Methodology

To identify the best organic food stocks to invest in, we conducted extensive research on the organic food industry and reviewed multiple industry analysis reports. We identified major players that are dominating the organic food market and reviewed their product portfolios. Along with each stock, we have mentioned the analyst and investor sentiment for it.

Let’s look at the 10 best organic food stocks to invest in.

Best Organic Food Stocks To Invest In

10. Village Super Market, Inc. (NASDAQ:VLGEA)

Number of Hedge Fund Holders: 13

Village Super Market, Inc. (NASDAQ:VLGEA) operates a chain of supermarkets in the United States. Its stores feature specialty departments, such as an on-site bakery, various natural and organic foods, ethnic and international foods, prepared foods, and pharmacies. The company operates a chain of twenty-nine ShopRite supermarkets, five Fairway Markets, and three Gourmet Garage specialty markets located in New Jersey, New York, Pennsylvania, and Maryland. Village Super Market, Inc. has one of the largest selections of organic food products, which is why it is ranked among the best organic food stocks to invest in.

In addition to having an impressive portfolio of organic food brands, Village Super Market, Inc. is also an undervalued dividend player. As of June 10, the stock has a forward yield of 4.13%, a trailing-twelve-month PE ratio of 11.99, and on top of this Village Super Market, Inc. has gained 5.99% over the past six months.

At the end of the first quarter of 2022, 13 hedge funds were long Village Super Market, Inc. with stakes worth $35.79 million. This is compared to 13 positions in the previous quarter with stakes worth $34.17 million.

In the first quarter of 2022, Jim Simons’ Renaissance Technologies raised its stakes in Village Super Market, Inc. by 2%, bringing them to $17.09 million. The investment covers 0.02% of the fund’s 13F portfolio, and Renaissance Technologies is the top shareholder in the company.

9. United Natural Foods, Inc. (NASDAQ:UNFI)

Number of Hedge Fund Holders: 20

United Natural Foods, Inc. (NASDAQ:UNFI) distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. The company operates through two primary segments: Wholesale and Retail. As of June 2022, United Natural Foods, Inc. has a portfolio of over 5000 premium brands that cover more than 200 categories. The company is one of the largest wholesale distributors of health and specialty foods in the United States and Canada, which makes it rank among the best organic food stocks to invest in.

On June 7, United Natural Foods, Inc. released earnings for the fiscal third quarter of 2022 in which it outperformed Wall Street expectations. The company reported earnings per share of $1.10 and beat EPS estimates by $0.12. The company reported quarterly revenue of $7.24 billion, up 9.40% year over year, and beat revenue estimates by $151.84 million. Moreover, as of June 10, the stock has a forward PE ratio of 9.25 and has surged by 21.25% over the past twelve months.

Shortly after the company’s Q3 earnings beat, MKM Partners analyst Bill Kirk raised his price target on United Natural Foods, Inc. to $69 from $66 and reiterated a Buy rating on the shares.

Hedge funds are raising their stakes in United Natural Foods, Inc.. At the close of Q1 2022, 20 hedge funds held stakes in the company worth $115.40 million. This is compared to 21 positions in the prior quarter with stakes worth $101.56 million.

In the first quarter of 2022, Intrinsic Edge Capital raised its stakes in United Natural Foods, Inc. by 111%, bringing them to $23.08 million, and making Intrinsic Edge Capital the most bullish hedge fund on the company.

8. Conagra Brands, Inc. (NYSE:CAG)

Number of Hedge Fund Holders: 22

Conagra Brands, Inc. (NYSE:CAG) operates as a consumer packaged goods food company in North America. The company operates through four business segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice. The company has a track record of over 100 years of producing excellent quality food products and has a portfolio of high-quality organic brands including Birds Eye, Healthy Choice, Blake’s, and Angie’s among premium labels, which makes Conagra Brands, Inc. rank among the 10 best organic food stocks to invest in now.

In addition to its premium portfolio of organic brands, Conagra Brands, Inc. is among the few dividend-paying stocks in the organic food and beverages industry. As of June 10, the stock has a forward dividend yield of 3.83% and a price-to-earnings ratio of 13.92, which makes it a value stock pick in the organic food industry. Conagra Brands, Inc. has been issuing and growing its dividends for two years now.

On March 30, UBS analyst Cody Ross initiated coverage of Conagra Brands, Inc. with a Neutral rating and a $34 price target. Ross noted that there is rising adoption of healthy lifestyle choices among consumers and as inflation rises, he favors companies that hold stronger pricing power over peers and invest in innovation and brand equity to drive margin expansion.

According to Insider Monkey’s database, at the close of Q1 2022, 22 hedge funds held stakes in Conagra Brands, Inc.. The total value of these stakes came in at $479.74 million. Of these, JANA Partners was the top shareholder in the company, owning over 8.05 million shares of Conagra Brands, Inc. as of March 31, 2022. The fund’s stakes in the company were valued at $270.27 million.

Major retailers like Costco Wholesale Corporation, Walmart Inc., and The Kroger Co. are adding organic food products that are manufactured and sold by Conagra Brands, Inc. to their offerings.

7. Sprouts Farmers Market, Inc. (NASDAQ:SFM)

Number of Hedge Fund Holders: 24

Sprouts Farmers Market, Inc. (NASDAQ:SFM) offers fresh, natural, and organic food products in the United States. As of this April, the company operates 379 stores in over 20 states across the U.S., and offers thousands of organic food products that cover dairy, frozen, produce, bakery, and meats, among other categories and make Sprouts Farmers Market, Inc. one of the best organic food stocks to invest in.

On May 5, Sprouts Farmers Market, Inc. announced earnings for the fiscal first quarter of 2022. The company reported earnings per share of $0.79 and outperformed expectations by $0.07. Sprouts Farmers Market, Inc. also generated quarterly revenue of $1.64 billion, up 4.17% year over year, missing consensus by $8.55 million. As of June 10, Sprouts Farmers Market, Inc. has a forward PE ratio of 12.13, making it an undervalued stock option to consider for investors exploring the organic food industry.

At the end of the first quarter of 2022, 24 hedge funds were bullish on Sprouts Farmers Market, Inc. with stakes worth $311.38 million. This is compared to 21 positions in the previous quarter with stakes worth $245.78 million. The hedge fund sentiment for the stock is positive.

As of March 31, Renaissance Technologies is the top shareholder in Sprouts Farmers Market, Inc.. The hedge fund reportedly upped its previous stakes in the company by 3% in the first quarter of 2022, bringing them to $188.62 million. The investment covers 0.22% of Jim Simons’ 13F portfolio.

Here is what RF Capital Management had to say about Sprouts Farmers Market, Inc. in its first-quarter 2022 investor letter:

“Sprouts continues to make progress despite inflation and supply chain constraints. For the year, SFM opened 12 new stores and 2 new distribution centers. Also, SFM launched over 5,700 new products and 4 new format stores. More importantly, Q4 traffic was positive. On the other hand, sales, EPS and FCF were down compared to FY 2020. However, using 201 figures may be more useful given how COVID-19 provided a huge tailwind for SFM. If we consider 2019 sales, EPS and FCF as normalized numbers, then Sprouts is still performing well given how net sales, adjusted EPS and cash flow increased 8%, 68% and 3%, respectively, versus 2019. Guidance for 2022 was also positive.

Management has provided the following:

– Sales growth of 4%-6%
– Comp store sales growth of 0%-2%
– 15 to 20 new stores
– Flat gross margin and SG&A increase of 4%-6%
– Adjusted EBITDA of $330-$345M
– 25% effective tax rate
– Adjusted EPS of $2.14-$2.24
– CapEx of $150-$170M

Additionally, SFM is on track to achieve its 10% store growth target. The real estate team currently has 80 approved sites and more than 50 signed leases. By 2023, SFM should be closer to the 10% growth target. Overall, we believe Sprouts remains a great long-term investment. SFM continues to be one of our largest positions at 14.10%. Despite COVID-19 no longer providing a tailwind, sales, EPS and FCF continue to grow and new stores are opened every year…” (Click here to see the full text)

6. The Hain Celestial Group, Inc. (NASDAQ:HAIN)

Number of Hedge Fund Holders: 29

The Hain Celestial Group, Inc. (NASDAQ:HAIN) is a leading manufacturer and seller of organic and natural food products in the United States, United Kingdom, and internationally. The company operates through two segments: North America and International. As of June 2022, The Hain Celestial Group, Inc. boasts a portfolio of over 40 organic brands, which makes it rank high among the best organic food stocks to invest in.

On May 5, The Hain Celestial Group, Inc. released earnings for the fiscal third quarter of 2022. The company registered an EPS of $0.33 but missed expectations by $0.12. The company’s revenue for the quarter came in at $502.94 million, up 2.10% year over year, missing Wall Street consensus by $21.63 million.

Analysts are bullish on The Hain Celestial Group, Inc.. On May 24, CL King analyst Andrew Wolf initiated coverage of the company with a Buy rating and a $35 price target on the shares.

At the end of Q1 2022, 29 hedge funds held stakes in The Hain Celestial Group, Inc. worth $203.94 million. This is compared to 26 hedge funds in Q4 2021 with stakes worth $377.40 million.

As of March 31, Paradice Investment Management is the leading stakeholder in The Hain Celestial Group, Inc., owning over 1.2 million shares of the company which amounts to a stake of $42.61 million.

Similar to Costco Wholesale Corporation, Walmart Inc., and The Kroger Co., The Hain Celestial Group, Inc. offers a wide range of organic food products and premium brands.

5. The Kraft Heinz Company (NASDAQ:KHC)

Number of Hedge Fund Holders: 35

The Kraft Heinz Company (NASDAQ:KHC) manufactures and markets food and beverage products in the United States, Canada, the United Kingdom, and internationally. The company offers a range of organic products as part of its portfolio of more than 200 premium brands that are sold in roughly 200 countries across the globe. The Kraft Heinz Company is the third-largest food and beverage company in North America and the fifth-largest food and beverage company in the world, which justifies its high rank among the best organic food stocks to invest in now.

In addition to being a food and beverages giant, The Kraft Heinz Company is an undervalued dividend player. As of June 10, the stock has a forward PE ratio of 13.94, a forward dividend yield of 4.28%, and has gained 9.14% over the past six months.

On April 27, The Kraft Heinz Company announced that its board of directors have declared a quarterly cash dividend of $0.40 per share of the company’s common stock.

Hedge funds are raising their stakes in The Kraft Heinz Company. Insider Monkey found 35 hedge funds bullish on the stock at the close of Q1 2022. The total stakes of these funds amounted to $13.44 billion, up from $12.21 billion in the previous quarter with 39 positions.

As of March 31, Berkshire Hathaway is the leading shareholder in The Kraft Heinz Company, owning over 325.63 million shares of the company which amounts to a stake of $12.82 billion. The investment covers 3.52% of Warren Buffett’s 13F portfolio.

4. General Mills, Inc. (NYSE:GIS)

Number of Hedge Fund Holders: 37

General Mills, Inc. (NYSE:GIS) is an American multinational manufacturer and marketer of branded consumer foods and offers a wide range of food products including ready-to-eat cereals, refrigerated yogurt, soup, meal kits, and organic food products, among others. The company is known for its consumer-loved brands Betty Crocker, Pillsbury, Cheerios, Trix, Lucky Charms, Count Chocola, and Cocoa Puffs. General Mills, Inc. owns the world-famous organic food brand, Annie’s, and its industry-leading position makes it rank high among the best organic food stocks to invest in now.

General Mills, Inc. is making unparalleled strides in the organic food industry. This June, the company invested $3 million in support to fund the launch of the Ecosystem Services Market Consortium’s program for regenerative agriculture. The company put forth a multi-year roadmap to scale Eco-Harvest, ESMC’s market program, with a focus on regions in the U.S. and Canada.

On May 26, Deutsche Bank analyst Steve Powers raised his price target on General Mills, Inc. to $75 from $73 and reiterated a Buy rating on the shares.

Insider Monkey spotted 37 hedge funds bullish on General Mills, Inc. having stakes worth $819.57 million in the company at the close of Q1 2022. This is compared to 36 positions in the previous quarter with stakes worth $781.36 million. The hedge fund sentiment for the stock is positive.

In the first quarter of 2022, Renaissance Technologies raised its stakes in General Mills, Inc. by 4%, bringing them to $300.11 million. Renaissance Technologies is the most prominent shareholder in the company.

Miller Howard Investments mentioned General Mills, Inc. in its third-quarter 2021 investor letter. Here is what the firm had to say:

“Other stocks providing balance against our cyclicals include General Mills (GIS). They pay good dividends supported by stable business models and have a conservative amount of debt. The dividend yield on our Income-Equity Strategy is now 3.6%. The No-MLP version yield is 3.5%. Both yields are roughly 2.5 times the yield on the S&P 500 Index, and we are seeing dividend increases across our portfolios. Our income advantage over the broad market is significant, yet we also believe that we have enough cyclical tilt to perform well in a recovery. We continue to monitor a variety of risks, with inflation and COVID-19 trends being most important.”

3. The Kroger Co. (NYSE:KR)

Number of Hedge Fund Holders: 45

The Kroger Co. is among the largest retailers in the United States. The company operates a combination of food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. Among the company’s product offerings there is a wide range of natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce. The Kroger Co. is most famous for its organic food brand, Simple Truth, and is among the top three organic food stocks to invest in now.

Analysts are bullish on The Kroger Co.. On June 6, Guggenheim analyst John Heinbockel raised his price target on The Kroger Co. to $57 from $49 and reiterated a Buy rating on the shares.

On June 9, The Kroger Co. announced the expansion of its delivery services to serve customers in South Florida, with the opening of its new location in Miami.

The Kroger Co. is another undervalued dividend player in the organic food industry. As of June 10, The Kroger Co. has a forward PE ratio of 13.47, a dividend yield of 1.64%, and has appreciated by 30.01% over the past twelve months.

At the close of Q1 2022, 45 hedge funds were long The Kroger Co. and held stakes worth $5.16 billion in the company. This is compared to 41 hedge funds in Q4 2021 with stakes worth $4.15 billion. The hedge fund sentiment for the stock is positive.

As of March 31, Warren Buffett’s Berkshire Hathaway is the dominating stakeholder in The Kroger Co. owning over 57.98 million shares of the company which amounts to a stake of $3.32 billion.

2. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 60

Walmart Inc. is the largest retailer in the world, both domestically and internationally. The company operates a chain of hypermarkets, discount department stores, and grocery stores in the United States. As of this April, Walmart Inc. operates over 10,585 stores and clubs in 24 countries under 46 different labels. The company boasts a portfolio of over 1000 organic food products, making it rank among the top 3 organic food stocks to invest in now.

On May 17, Walmart Inc. announced earnings for the fiscal first quarter of 2023. The company reported earnings per share of $1.30 but missed expectations by $0.18. The company’s revenue for the quarter amounted to $140.29 billion, up 2.28% year over year, outperforming market consensus by $2.24 billion.

On June 6, Morgan Stanley analyst Simeon Gutman reiterated his Overweight rating and $156 price target on Walmart Inc. following the company’s shareholder meeting on June 3, 2022.

At the end of the first quarter of 2022, 60 hedge funds held stakes in Walmart Inc.. The total value of these stakes came in at $6.56 billion.

In the first quarter of 2022, GQG Partners raised its Q4 2021 stakes in Walmart Inc. by 49%, bringing them to $2.29 billion in the first quarter of 2022. As of March 31, GQG Partners owns 15.43 million shares of Walmart Inc. and is the most prominent shareholder in the company.

1. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 61

Costco Wholesale Corporation is the second-largest retailer in the world but is the world’s largest retailer of organic food products.

This April, the big-box retailer released earnings for the fiscal third quarter of 2022. The company registered an EPS of $3.04 and beat expectations by $0.02. The company’s revenue for the quarter amounted to $52.60 billion, up 16.16% year over year, and beat Wall Street consensus by $1.11 billion. As of June 10, Costco Wholesale Corporation has appreciated by 23.25% over the past twelve months.

Costco Wholesale Corporation is experiencing increasing demand for its products. Recently, the company reported its sales volumes for May 2022, which came in at $18.23 billion, up 16.9% year over year.

This June, Atlantic Equities analyst Daniela Nedialkova noted Costco Wholesale Corporation has continuously delivered “strong comp momentum” while she reiterated her Overweight rating and $615 price target on the stock.

Hedge funds are piling into Costco Wholesale Corporation. Insider Monkey found 61 hedge funds bullish on Costco Wholesale Corporation with stakes worth $5.41 billion at the end of Q1 2022. This is compared to 57 hedge funds in Q4 2021 with stakes worth $5.40 billion. The hedge fund sentiment around Costco Wholesale Corporation is positive.

As of March 31, Fisher Asset Management is the most bullish hedge fund on Costco Wholesale Corporation. Ken Fisher’s hedge fund increased its stakes in Costco Wholesale Corporation in the first quarter of 2022 by 4%, bringing them to $2.43 billion.

ClearBridge Investments mentioned several companies in its “Sustainability Leaders Strategy” fourth-quarter 2021 investor letter, one of which was Costco Wholesale Corporation. Here is what the firm said:

“Portfolio gains were led by a diverse group of contributors. Also in consumer discretionary, Costco, which operates a chain of membership-only big-box retail stores, continues to impress as it takes to share and becomes more relevant for the consumer even as the world opens up.”

You can also take a look at 10 Biggest Healthy Food Brands in the World and 10 Healthy and Sustainable Food Stocks to Buy.

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