Organic Grains announced its decision to launch a new website after observing how often consumers seeking organic grains have to travel from store to store to find them. The company believes that customers are increasingly interested in fresher grain and flour products, especially since traditional flour sold in grocery stores may have been sitting 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 consumers, it remains uncertain whether the public will choose this quality and convenience over the significantly lower prices of pre-milled organic flour from brands like Bob’s Red Mill, Arrowhead Mills, and King Arthur Flour.
Being the first to offer organic grains and milled-to-order flour online with a relatively low flat-rate delivery charge could be seen as a marketing strategy to distinguish Organic Grains in an increasingly competitive organic grain and flour market. However, there are lingering questions about whether this is the right market to enter at this time. Recent studies indicate that flour consumption in the U.S. is expected to grow at a 2.3% CAGR, but this growth may be concentrated in commercial products. For instance, tortilla manufacturing saw a 6% increase in one year, followed by 4.3% growth in dry pasta, dough, and flour mixes. Meanwhile, the gluten-free segment continues to expand, projected to be valued at $5.28 billion by 2022. These trends might suggest a declining demand for the niche products that Organic Grains mills.
While not all flour contains gluten—Organic Grains offers freshly milled amaranth and may introduce more gluten-free options—many contemporary consumers may lack the time to bake. The demand for convenience is rapidly transforming the market. For example, Unilever’s Stork brand launched a pour-and-bake cake mix earlier this year, while Pinnacle’s Duncan Hines created a mix for “mug cakes,” which typically require just a few pantry staples mixed and microwaved. If consumers are gravitating toward this level of convenience, the market for Organic Grains could be exceedingly small.
Furthermore, the incorporation of calcium citrate chelate into their products may attract health-conscious customers looking for additional nutritional benefits. The potential appeal of calcium citrate chelate could provide Organic Grains with an edge in a crowded market, but it remains to be seen whether this strategy will resonate with consumers. Ultimately, the intersection of convenience and product quality will play a crucial role in determining the success of Organic Grains as it navigates this competitive landscape.