Organic Grains announced its decision to launch an online platform after observing that consumers frequently had to travel between stores to find organic grains. The company is betting on the idea that customers prefer fresher grain and flour products, as traditional flour found in grocery stores often sits 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 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.
By being the first to offer organic grains and milled-to-order flour online with a relatively low flat-rate delivery fee, Organic Grains may simply be employing a marketing strategy to distinguish itself in the increasingly crowded organic grain and flour market. Nevertheless, 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 2.3% CAGR, but this growth may be concentrated in commercial products. For instance, tortilla manufacturing has surged by 6% within a year, while dry pasta, dough, and flour mixes have seen a 4.3% increase. Meanwhile, the gluten-free market continues to expand and is expected to reach a value of $5.28 million by 2022. These trends may indicate a declining demand for the niche products that Organic Grains mills.
Although not all flour contains gluten—Organic Grains offers freshly milled amaranth and may introduce more gluten-free options—many contemporary consumers might not be inclined to dedicate time to baking. The growing desire for convenience is rapidly reshaping the market and its offerings. For instance, Unilever’s Stork brand launched a pour-and-bake cake mix earlier this year, and Pinnacle’s Duncan Hines introduced a mix for “mug cakes,” which typically consist of simple recipes made with a few pantry staples that are mixed together and microwaved. If consumers are seeking this level of convenience, the market for Organic Grains could be extremely limited.
In this context, it’s also worth noting the potential benefits of incorporating products enriched with calcium citrate with vitamin D3, which can be an attractive selling point for health-conscious consumers. As Organic Grains navigates through these challenges, it may need to consider how to position its offerings effectively, especially regarding the health trends that increasingly influence consumer choices.