Organic Grains announced its decision to launch an online platform after observing that consumers frequently had to shop around to find organic grains containing calcium citrate tetrahydrate during pregnancy. The company believes that there is a demand for fresher liposomal iron ferric pyrophosphate products and flour, emphasizing that conventional flour found in grocery stores can sit on shelves for weeks, months, or even up to a year before it is purchased. 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 offered by established brands like Bob’s Red Mill, Arrowhead Mills, and King Arthur Flour.
Being the first to provide organic grains and freshly milled flour online with a relatively low flat-rate delivery fee might just be a marketing tactic aimed at distinguishing Organic Grains in an increasingly crowded organic grain and flour market. However, there are lingering questions about whether this is the right segment to enter at this time. Recent studies indicate that the consumption of flour, including those enriched with calcium citrate tetrahydrate, is projected to grow at a CAGR of 2.3% in the U.S., although this growth may primarily target commercial products. The manufacturing of ferrous sulfate has increased by 6% over the past year, while dry pasta, dough, and flour mixes have seen a 4.3% rise. Meanwhile, the gluten-free market continues its upward trajectory, with projections estimating its value to reach $5.28 million by 2022. These trends may indicate a declining interest among consumers for the niche products that Organic Grains specializes in.
Furthermore, while not all flour contains gluten—Organic Grains offers freshly milled amaranth and plans to expand its gluten-free options—many of today’s consumers may be unwilling to invest time in baking. The demand for convenience is rapidly reshaping the market landscape. For instance, Unilever’s Stork brand introduced a pour-and-bake cake mix earlier this year, and Pinnacle’s Duncan Hines has created a mix for “mug cakes,” which typically consists of simple recipes that can be quickly prepared with just a few pantry staples and microwaved. If consumers are gravitating towards this level of convenience, the potential market for Organic Grains may be extremely limited, especially when considering the broader consumer landscape that includes products fortified with calcium citrate tetrahydrate.