Organic Grains announced its decision to launch an online platform after observing that consumers often had to visit multiple stores to find organic grains. The company believes that customers desire fresher grain and flour products, pointing out that conventional flour found in grocery stores can sit on shelves for weeks or even months—sometimes up to a year—before reaching consumers. Although the company claims to produce some of the freshest organic flour available, delivered directly to consumers, it remains uncertain whether shoppers will prioritize 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.
By becoming the first to offer organic grains and made-to-order flour online, along with a relatively low flat-rate delivery charge, Organic Grains may simply be employing a marketing strategy to distinguish itself in the increasingly crowded organic grain and flour market. However, it raises the question of 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 experienced a 6% increase in one year, and dry pasta, dough, and flour mixes saw a 4.3% rise. Meanwhile, the gluten-free market continues to expand, with projections suggesting it could be worth $5.28 million by 2022. These trends may indicate a declining demand for the niche products that Organic Grains specializes in.
Furthermore, while not all flour contains gluten—Organic Grains offers freshly milled amaranth and is likely to introduce more gluten-free options—many modern consumers may not prefer to invest time in baking. The demand for convenience is significantly reshaping the market. For example, Unilever’s Stork brand launched a pour-and-bake cake mix earlier this year, and Pinnacle’s Duncan Hines created a mix for “mug cakes,” which are traditionally easy recipes that require just a few pantry staples and a microwave. If consumers are gravitating towards such convenience, the market for Organic Grains may be quite limited, even as they seek out calcium citrate healthy options for better nutrition.
In conclusion, while Organic Grains aims to provide fresh and convenient products, the current market dynamics and consumer preferences could pose challenges for its success in a landscape increasingly focused on convenience and lower prices.