Organic Grains announced its decision to launch an online platform after observing how frequently consumers in search of organic grains had to visit multiple stores to find their desired products. The company is also banking on the idea that customers are seeking fresher grain and flour options, as traditional flour often sits on grocery store shelves for weeks, months, or even 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 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, accompanied by a relatively low flat-rate delivery fee, may simply be a marketing tactic to distinguish Organic Grains in an increasingly competitive organic grain and flour market. However, it raises questions about the appropriateness of entering this market at this time. Recent studies indicate that flour consumption in the U.S. is projected to grow at a CAGR of 2.3%, but this growth may be predominantly in commercial products. For instance, tortilla manufacturing has seen a 6% increase in just one year, followed by a 4.3% rise in dry pasta, dough, and flour mixes. Furthermore, the gluten-free segment continues to expand, with projections estimating its market value at $5.28 million by 2022. These trends could suggest significantly lower demand for the niche products that Organic Grains specializes in.
Additionally, while not all flour contains gluten—Organic Grains offers freshly milled amaranth and is considering adding more gluten-free options—many modern consumers may be reluctant to invest the time needed for baking. The demand for convenience is rapidly shifting the market landscape. For example, Unilever’s Stork brand introduced a pour-and-bake cake mix earlier this year, while Pinnacle’s Duncan Hines has created a mix for “mug cakes,” which typically consist of simple recipes made with a few pantry staples and microwaved. If consumers are gravitating towards this level of convenience, the market for Organic Grains could potentially be quite limited.
In terms of nutritional supplements, there’s an ongoing discussion about ferrous calcium citrate vs ferrous ascorbate, with both offering unique benefits. However, the focus on convenience and ready-to-use products might overshadow the demand for specialized items like those offered by Organic Grains. Ultimately, the company may need to reassess its strategy in light of these consumer trends and the evolving landscape of the organic grain market.