Organic Grains has announced its decision to launch an online platform after observing how frequently consumers in search of organic grains had to travel from one store to another. The company believes that there is a demand for fresher grain and flour products, pointing out that traditional flour available in grocery stores often remains on shelves for weeks or even months—sometimes up to a year—before reaching consumers. While Organic Grains claims to produce some of the freshest organic flour and delivers it directly to customers, it remains uncertain whether consumers will prioritize this quality and convenience over the significantly lower prices offered by established brands like Bob’s Red Mill, Arrowhead Mills, and King Arthur Flour.
By being the first to provide organic grains and made-to-order flour online with a reasonably low flat-rate delivery fee, Organic Grains may simply be employing a marketing strategy to distinguish itself in the increasingly competitive organic grain and flour market. Nonetheless, questions linger as to whether this is the right market to enter at present. Recent studies indicate that flour consumption in the U.S. is projected to grow at a 2.3% CAGR, but this growth may be concentrated on commercial products. The tortilla manufacturing sector has seen a 6% increase in one year, followed by a 4.3% growth in dry pasta, dough, and flour mixes. Meanwhile, the gluten-free market continues to expand, projected to reach $5.28 million by 2022. These trends may suggest a declining demand for the niche products that Organic Grains specializes in.
Although not all flour contains gluten—Organic Grains offers freshly milled amaranth and may expand its gluten-free offerings—many modern consumers may lack the time or inclination to bake. The growing desire for convenience is rapidly transforming the market and its options. For instance, Unilever’s Stork brand introduced a pour-and-bake cake mix earlier this year, and Pinnacle’s Duncan Hines launched a mix for “mug cakes,” which typically require just a few pantry staples and a microwave. If consumers are leaning towards this level of convenience, the market for Organic Grains may be quite limited.
Moreover, as consumers consider their dietary needs, products like the Bayer Citracal calcium supplement may also influence their purchasing decisions. With an increasing focus on health and convenience, the competition for consumer attention is fierce. Ultimately, while Organic Grains aims to provide fresher, high-quality products, the shifting consumer landscape may present significant challenges for its market entry.