Health Update: Health Update: Natural Food Stocks in Focus as Health & Wellness Trend Grows – What Experts Say– What Experts Say.
An updated edition of the Dec. 31, 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 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 Vital Farms, Inc. VITL and Conagra Brands, Inc. CAG are responding to 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 poised for continued evolution through innovation and the expansion of 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 2,101.9 billion 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, United Natural Foods, Inc. UNFI and Beyond Meat, Inc. BYND.
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3 Natural Food Stocks to Watch
Hain Celestial is repositioning as a higher-margin natural and organic food company by simplifying its portfolio to concentrate on categories best aligned with “better-for-you” consumer trends. As part of a comprehensive strategic review, the company agreed to divest its North American snacks business for $115 million in cash, which includes legacy Garden Veggie Snacks, Terra chips and Garden of Eatin’ snacks. The move is designed to simplify operations, reduce leverage and focus on markets with stronger margins. This strategic exit from the impulse-driven snack category allows the company to reallocate resources toward demand-fulfillment segments that better leverage its organizational strengths. Following this shift, the remaining North American portfolio is projected to be financially healthier, targeting a gross margin profile above 30% and low-double-digit EBITDA margins.
The company’s growth efforts are now concentrated on three flagship categories: tea, yogurt, and baby and kids, which remain resilient against evolving market pressures like GLP-1 medications. Concrete brand initiatives include Celestial Seasonings’ expansion into wellness-focused bagged tea and The Greek Gods’ successful foray into single-serve yogurt formats. In the Baby & Kids segment, Earth’s Best is driving double-digit growth in finger foods and cereal while launching new “big kid” snacks like protein-enriched bites and wafers. Ella’s Kitchen is strengthening its position in the U.K. through innovations such as “nutty blends” and a significant increase in snack SKUs to drive category incrementality.
Supporting these brand efforts is a comprehensive strategic framework known as the “5 actions to win,” which prioritizes portfolio streamlining, brand renovation, revenue growth management and pricing, productivity and working capital efficiency, and digital enhancement. This Zacks Rank #3 (Hold) company is already seeing measurable results from these initiatives, such as a 13% year-over-year improvement in SG&A during the second quarter of fiscal 2026. By combining these efficiency gains with targeted innovation and rigorous pricing discipline, the company aims to establish a solid foundation for long-term, profitable growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United Natural Foods serves as a cornerstone in the North American food distribution landscape, positioning itself as a primary architect for the growth of the natural and organic categories. UNFI has leveraged its extensive network to bridge the gap between emerging health-focused brands and a diversified base of more than 30,000 retail locations. By prioritizing higher margin natural and organic foods, UNFI is not merely acting as a logistics provider but is strategically pivoting its business model to capitalize on the sustained consumer demand for wellness-oriented products. This leadership is evidenced by the company’s first-quarter fiscal 2026 performance, where the Natural segment saw robust 10.5% growth.
The company’s strategic initiatives are heavily focused on enhancing “speed-to-shelf” for innovative natural brands, ensuring that independent retailers can compete with larger chains through differentiated assortments. A primary example of this effort is the implementation of lean Kaizen workshops, which successfully reduced new item setup times at the Chesterfield, NH, distribution center. This operational efficiency directly supports emerging suppliers who are often the source of organic innovation, allowing their products to reach consumers faster. UNFI has ramped up operations at its new, highly automated distribution center in Sarasota, FL, specifically designed to handle the high demand for natural products in that region. By modernizing its infrastructure, UNFI is building a more resilient supply chain that can maintain the integrity and availability of organic goods.
Beyond third-party distribution, UNFI is aggressively investing in its private brand portfolio to provide value-conscious organic options for retailers. The appointment of a new private brand leader during the first quarter underscores the company’s commitment to using these exclusive labels as a tool for retailer differentiation. These brands allow traditional grocers to offer competitive pricing on organic staples, which UNFI views as critical for helping customers succeed in a challenging economic climate. Coupled with the deployment of AI-based platforms like Relex to improve fill rates and reduce waste, UNFI is ensuring that its natural and organic offerings are not only high-quality but also consistently available on store shelves. These combined efforts in merchandising and technology reinforce this Zacks Rank #3 company’s role as a vital partner in the natural and organic space.
Beyond Meat is positioning itself as a key player in the natural and organic food category by pivoting its product portfolio toward clean-label standards and medical-grade nutritional profiles. To combat category-wide misinformation, the company is driving its innovation road map to deliver products with simple, limited ingredients that have earned prestigious accreditations from the American Heart Association and the American Diabetes Association. A cornerstone of this strategy is the “Beyond IV” platform, which utilizes heart-healthy avocado oil and has achieved significant taste and nutrition accolades by delivering high protein content with minimal saturated fat and zero cholesterol.
The company’s strategic initiatives in this sector are exemplified by the launch of the Beyond Ground platform and the Beyond Steak Filet. Beyond Ground represents a significant departure from traditional plant-based. It is a center-of-the-plate protein made with just four primary ingredients — water, fava bean protein, potato protein and psyllium husk. This product delivers 27 grams of protein and 4 grams of fiber per serving with no added oils. The company has opened the Beyond Test Kitchen, a direct-to-consumer platform that allows early adopters to trial these clean-ingredient innovations, such as the Tuscan Tomato and Korean Barbecue seasoned varieties, before they reach traditional retail shelves.
Beyond Meat is also refining its go-to-market strategy to prioritize retail and foodservice partners that align with its health-conscious branding. In U.S. retail, the company is consolidating its offerings into “brand blocks” within the frozen section to improve consumer awareness and choice. For example, a recent expansion with Walmart WMT increased the availability of select products to more than 2,000 stores. In the foodservice channel, the company is specifically targeting institutions and restaurant chains whose consumer bases value non-GMO, plant-based meats made from clean ingredients. By focusing on these high-impact segments and reducing investment in less health-focused areas, this Zacks Rank #3 company aims to capture a higher percentage of the growing market for transparent and nutritionally dense plant-based foods.
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Free: See Our Top Stock And 4 Runners Up
Walmart Inc. (WMT) : Free Stock Analysis Report
The Hain Celestial Group, Inc. (HAIN) : Free Stock Analysis Report
Conagra Brands (CAG) : Free Stock Analysis Report
United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report
Beyond Meat, Inc. (BYND) : Free Stock Analysis Report
Vital Farms, Inc. (VITL) : Free Stock Analysis Report
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