Organic Grains announced its decision to launch an online platform after observing how frequently consumers seeking organic grains had to travel between various stores to find what they needed. The company is also betting that customers will prefer fresher grain and flour products, highlighting that traditional flour found in grocery stores often sits on shelves for weeks, months, or even up to a year before reaching consumers. Although Organic Grains claims to produce some of the freshest organic flour available and delivers it directly to customers, it remains uncertain whether this quality and convenience will outweigh the significantly lower prices offered by established brands like Bob’s Red Mill, Arrowhead Mills, and King Arthur Flour.
As the first to provide organic grains and freshly milled 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. However, doubts 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, potentially focused on commercial products. For instance, tortilla manufacturing experienced a 6% increase in one year, followed by 4.3% growth in dry pasta, dough, and flour mixes. Meanwhile, the gluten-free market is continuously expanding, expected to reach a value of $5.28 million by 2022. These trends may suggest a declining demand for the types of products that Organic Grains mills.
While Organic Grains does offer gluten-free options, such as freshly milled amaranth, many contemporary consumers may not be inclined to invest time in baking. The demand for convenience is rapidly reshaping the market landscape. For example, 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 consists of simple recipes using a few pantry staples combined and microwaved. If consumers prioritize convenience in their choices, the potential market for Organic Grains could be quite limited.
Moreover, the trend towards convenience might also affect the market for products like bariatric calcium chews, which are designed to meet specific dietary needs without requiring extensive preparation. As consumers increasingly seek quick and easy solutions, the demand for readily available products may overshadow the appeal of freshly milled organic options. In conclusion, while Organic Grains offers a fresh and direct approach to organic flour, the changing preferences of consumers could pose significant challenges in establishing a strong foothold in this competitive market.