Organic Grains has announced its decision to launch an online platform after observing that consumers often travel extensively from one store to another in search of organic grains. The company believes that there is a demand for fresher grain and flour products, as conventional flour available in grocery stores can sit on shelves for weeks or even months—sometimes up to a year—before it reaches consumers. Although Organic Grains claims to produce some of the freshest organic flour and delivers directly to customers, it remains uncertain whether shoppers will prioritize 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.
By being the first to provide organic grains and made-to-order flour online with a relatively low flat-rate delivery fee, Organic Grains may be employing a marketing strategy to set itself apart in the increasingly competitive organic grain and flour industry. However, questions linger regarding the viability of entering this market at this time. Recent studies indicate that flour consumption in the U.S. is projected to grow at a 2.3% CAGR, but this growth may primarily pertain to commercial products. For instance, tortilla manufacturing has seen a 6% increase in one year, followed by a 4.3% rise in dry pasta, dough, and flour mixes. In contrast, the gluten-free segment is also expanding, with projections suggesting it could reach a value of $5.28 million by 2022. These patterns might hint at a declining interest among consumers in the niche products that Organic Grains specializes in.
While it’s true that not all flour contains gluten—Organic Grains offers freshly milled amaranth and may introduce additional gluten-free selections—many modern consumers appear unwilling to invest their time in baking. The increasing desire for convenience is reshaping the market landscape. For example, Unilever’s Stork brand launched a pour-and-bake cake mix earlier this year, while Pinnacle’s Duncan Hines created a mix for “mug cakes,” which typically involve straightforward recipes that require just a few pantry staples and a microwave. If consumers are gravitating towards this level of convenience, the potential market for Organic Grains could be quite limited.
In the context of health and nutrition, discussions surrounding supplements often include comparisons such as calcium citrate vs calcium lactate. These discussions highlight consumer preferences for easily digestible options, which may influence purchasing decisions in the food market as well. As Organic Grains navigates this competitive landscape, it will be essential for the company to consider these broader trends and consumer behaviors, especially regarding convenience and health.