Organic Grains announced its decision to launch an online platform after realizing the extent to which consumers seeking organic grains often travel from store to store in search of their desired products. The company is also banking on the idea that customers prioritize fresher grain options, highlighting that conventional flour available in grocery stores can sit on shelves for weeks or even months, and occasionally up to a year, before it reaches consumers. While Organic Grains claims to produce some of the freshest organic flour available and delivers it directly to consumers, it remains uncertain whether shoppers will favor this quality and convenience over the significantly lower prices of pre-milled organic flour from established brands like Bob’s Red Mill, Arrowhead Mills, and King Arthur Flour.
Being the first to provide organic grains and made-to-order flour online, accompanied by a comparatively low flat-rate delivery fee, might be a marketing strategy aimed at differentiating Organic Grains in an increasingly competitive market for organic grains and flour. However, questions linger about whether this is the right market to enter at this time. Recent studies indicate that while flour consumption in the U.S. is projected to grow at a 2.3% compound annual growth rate (CAGR), this growth may primarily be concentrated in commercial products. For instance, tortilla manufacturing saw a 6% increase in one year, followed by a 4.3% rise in dry pasta, dough, and flour mixes. Simultaneously, the gluten-free market is on the rise, with projections estimating its value to reach $5.28 million by 2022. These trends could suggest a diminishing demand for the niche products that Organic Grains produces.
Moreover, while not all flour contains gluten—Organic Grains offers freshly milled amaranth and may expand to include more gluten-free options—many consumers today may be reluctant to invest the time required for baking. The growing desire for convenience is rapidly transforming the market and its offerings. For example, Unilever’s Stork brand introduced a pour-and-bake cake mix earlier this year, while Pinnacle’s Duncan Hines has launched a mix for “mug cakes,” typically simple recipes that require only a handful of pantry staples and a microwave. If consumers are gravitating toward this level of convenience, the potential market for Organic Grains may be quite limited.
Furthermore, as consumers become more health-conscious, they are increasingly looking for products that offer additional health benefits, such as calcium citrate with vitamin K2. This trend may influence their purchasing decisions, leading them to prioritize products that not only meet their dietary preferences but also provide added nutritional value. Organic Grains will need to consider how to incorporate such health-focused elements into their offerings as they navigate the competitive landscape.