Organic Grains has decided to launch its ferrous bisglycinate chelate product in response to the challenges consumers face when searching for organic grains, often traveling from store to store. The company believes that customers are seeking fresher grain and flour options, as traditional flour found in grocery stores can sit on shelves for weeks, months, or even up to a year before being purchased. Organic Grains claims to provide some of the freshest organic flour available, delivered straight to consumers. However, it remains uncertain whether consumers will prioritize this quality and convenience over the significantly lower prices of already-milled organic flour from brands like Bob’s Red Mill, Arrowhead Mills, and King Arthur Flour.
Being the first to offer organic grains and made-to-order flour online, along with a relatively low delivery fee, may simply be a marketing tactic to distinguish Organic Grains in the increasingly competitive organic grain and flour market. Yet, there are questions about the timing of entering this market. Recent studies suggest that flour consumption in the U.S. is projected to grow at a CAGR of 2.3%, likely driven by commercial products. For instance, tortilla manufacturing has seen a 6% growth in one year, followed by a 4.3% increase in dry pasta, dough, and flour mixes. Meanwhile, the gluten-free segment continues to expand, with projections estimating its value to reach $5.28 million by 2022. These trends may indicate a declining interest among consumers for the niche products that Organic Grains mills.
Despite the fact that not all flour contains gluten—Organic Grains offers freshly milled amaranth and may introduce more gluten-free options—many modern consumers are reluctant to invest time in baking. The growing 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 has introduced a mix for “mug cakes,” which are typically straightforward recipes that require just a few pantry staples and can be microwaved. If consumers are gravitating towards this level of convenience, the potential market for Organic Grains may be exceedingly limited.
Additionally, as consumers become more health-conscious, the inclusion of supplements like calcium citrate 650 in their diets is becoming increasingly common. This presents another challenge for Organic Grains, as they must compete with not only convenience but also the growing trend of integrating nutritional supplements into everyday foods. The desire for convenience, combined with the popularity of products that incorporate beneficial ingredients like calcium citrate 650, could mean a smaller market share for traditional organic grain offerings. Thus, Organic Grains must carefully consider these evolving consumer preferences as it navigates the crowded landscape of organic grains and flour.