Organic Grains announced its decision to launch an online platform after recognizing that consumers often had to travel extensively from one store to another in search of organic grains. The company is also banking on the idea that customers are interested in fresher grain and flour products, as traditional flour available in grocery stores frequently sits on shelves for weeks, months, or even 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.
Being the first to provide organic grains and made-to-order flour online, coupled with a relatively low flat-rate delivery fee, might simply be a marketing tactic to distinguish Organic Grains in an increasingly saturated organic grain and flour market. However, questions linger about whether this is the right time to enter this market. Although recent studies indicate that flour consumption in the U.S. is projected to grow at a 2.3% CAGR, the focus may be more on commercial products. For instance, tortilla manufacturing experienced a 6% growth within a year, followed by a 4.3% increase in dry pasta, dough, and flour mixes. At the same time, the gluten-free market is expanding, with projections suggesting it could reach a value of $5.28 million by 2022. These trends may indicate a declining demand among consumers for the niche products that Organic Grains produces.
While not all flour contains gluten—Organic Grains offers freshly milled amaranth and may expand its gluten-free options—many contemporary consumers may be reluctant to invest the time needed for baking. The growing demand for convenience is rapidly reshaping the market’s landscape. For example, Unilever’s Stork brand introduced a pour-and-bake cake mix earlier this year, and Pinnacle’s Duncan Hines has launched a mix for “mug cakes,” which typically consist of simple recipes made with a few pantry staples and microwaved. If consumers are gravitating toward this level of convenience, the potential market for Organic Grains may be quite limited.
Moreover, as consumers become more health-conscious, products like sisu cal mag citrate are gaining traction. This adds another layer of complexity to the organic grains market, as health-oriented consumers might prioritize supplements over traditional baking ingredients. As Organic Grains navigates these market dynamics, it will need to consider how to effectively integrate products like sisu cal mag citrate to appeal to health-focused shoppers while maintaining its commitment to freshness and quality.