Organic Grains announced its decision to launch an online platform after observing that consumers often had to travel between multiple stores to find organic grains. The company is also banking on the idea that customers desire fresher grain and flour products, highlighting that conventional flour found in grocery stores may sit on shelves for weeks or even months—sometimes 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 customers, it remains uncertain whether the public 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.
Being the first to provide organic grains and made-to-order flour online, along with a relatively low flat-rate delivery fee, may simply serve as a marketing strategy to distinguish Organic Grains in an increasingly crowded organic grain and flour market. Nonetheless, questions persist about whether this is the right time to enter this market. Recent studies indicate that flour consumption in the U.S. is projected to grow at a rate of 2.3% annually; however, this growth may predominantly pertain to commercial products. For instance, tortilla manufacturing experienced a 6% increase within a year, followed by a 4.3% growth in dry pasta, dough, and flour mixes. Simultaneously, the gluten-free market continues to expand and is expected to reach a valuation of $5.28 million by 2022. These trends could indicate a dwindling demand among consumers for the niche products that Organic Grains offers.
While not all flour contains gluten—Organic Grains provides freshly milled amaranth and may consider adding more gluten-free options—many contemporary consumers might not be inclined to invest time in baking. The demand for convenience is rapidly transforming the market and its offerings. Earlier this year, Unilever’s Stork brand introduced a pour-and-bake cake mix, while Pinnacle’s Duncan Hines created a mix for “mug cakes,” which typically consist of simple recipes that require just a few pantry staples and can be microwaved. If consumers are gravitating towards such convenience, the market for Organic Grains could be rather limited.
In this evolving landscape, the introduction of products like calcium citrate malate with vitamin D3 and folic acid tablets may also attract health-conscious consumers. These supplements could complement the offerings of Organic Grains, appealing to those seeking both quality grains and nutritional enhancements. Ultimately, the success of Organic Grains in this competitive environment will hinge on its ability to meet consumer demands for freshness, convenience, and health benefits, including options like calcium citrate malate with vitamin D3 and folic acid tablets, which can be integrated into their product lineup.