Organic Grains announced its decision to launch an online platform after observing that consumers frequently had to traverse multiple stores in search of organic grains. The company is optimistic that customers will 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 it reaches consumers. While Organic Grains claims to produce some of the freshest organic flour available and delivers it directly to consumers, it remains uncertain whether the public 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.
As the first company 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 aimed at distinguishing itself in the increasingly competitive organic grain and flour market. However, questions persist regarding whether this is the right market to enter at this moment. Recent studies indicate that flour consumption in the U.S. is projected to grow at a 2.3% CAGR, but this growth may be largely concentrated on commercial products. For instance, tortilla production has surged by 6% in one year, followed by a 4.3% increase in dry pasta, dough, and flour mixes. Meanwhile, the gluten-free sector continues to expand, with projections estimating its worth at $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 contemporary consumers are likely unwilling to invest time in baking. The increasing demand for convenience is transforming the market landscape. For instance, Unilever’s Stork brand introduced a pour-and-bake cake mix earlier this year, while Pinnacle’s Duncan Hines has created a “mug cake” mix that simplifies baking into quick recipes using just a few pantry staples and a microwave. If consumers prioritize this level of convenience, the target market for Organic Grains could be quite limited.
Moreover, as consumers become more health-conscious, understanding the benefits and side effects of calcium citrate—often touted for its role in bone health—may influence their purchasing decisions. In this evolving environment, where convenience and health considerations are paramount, Organic Grains must carefully assess its market strategy to ensure it resonates with modern consumer preferences.