Organic Grains has announced its decision to launch an online platform after observing that consumers often have to visit multiple stores to locate organic grains. The company is banking on the idea that customers seek fresher grain and flour products, as conventional flour sold in grocery stores often sits 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 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 freshly milled-to-order flour online, along with a relatively low flat-rate delivery charge, may merely serve as a marketing strategy to distinguish Organic Grains in the increasingly saturated organic grain and flour market. Nonetheless, questions linger 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 CAGR of 2.3%, but this growth may be largely driven by 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. Meanwhile, the gluten-free market continues to expand, projected to reach a value of $5.28 million by 2022. These trends suggest a potential decline in 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 options—many contemporary consumers may not be inclined to spend time baking. The demand for convenience is 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 involve simple recipes made with a few pantry staples and microwaved. If consumers prioritize this level of convenience, the market for Organic Grains may be considerably limited.
Furthermore, as allergy concerns become more prevalent, products like those from the Allergy Research Group, such as calcium magnesium citrate, are gaining attention. This trend highlights the need for companies like Organic Grains to adapt to changing consumer preferences. If they can effectively incorporate allergy-friendly options and emphasize the freshness of their products, they may carve out a niche in this evolving market. However, for now, the challenge remains to attract consumers who prioritize convenience over quality.