Organic Grains announced its decision to launch an online platform after observing that consumers frequently traveled from store to store in search of organic grains. The company is betting on the idea that customers desire fresher grain and flour products, as traditional flour found in grocery stores often sits on 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 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, may simply serve as a marketing tactic to set Organic Grains apart in the increasingly competitive organic grain and flour market. However, questions linger regarding whether this is the right time to enter such a market. Recent studies indicate that flour consumption in the U.S. is projected to grow at a compound annual growth rate (CAGR) of 2.3%, but this growth may primarily pertain to commercial products. For instance, tortilla manufacturing has seen a 6% increase in one year, followed by 4.3% growth for dry pasta and flour mixes. Meanwhile, the gluten-free market is on the rise, expected to reach a value of $5.28 million by 2022. These trends could suggest a diminishing demand for the niche products that Organic Grains specializes in.
Although not all flour contains gluten—Organic Grains offers freshly milled amaranth and plans to introduce more gluten-free options—many contemporary consumers may be reluctant to invest time in baking. The growing desire for convenience is rapidly reshaping the market landscape. For example, Unilever’s Stork brand launched a pour-and-bake cake mix earlier this year, and Pinnacle’s Duncan Hines has developed a “mug cake” mix, which typically involves simple recipes using a few pantry staples that can be quickly prepared in the microwave. If consumers are gravitating toward this level of convenience, the market for Organic Grains could be quite limited.
Moreover, as health-conscious consumers increasingly seek out supplements such as cissus quadrangularis calcium citrate malate and vitamin D3 tablets, Organic Grains may need to consider how to integrate such trends into their offerings. With the growing emphasis on health and convenience, the company’s commitment to fresh organic grains must align with consumer preferences for quick and easy solutions, or they may find themselves struggling to carve out a significant niche in the market.