Organic Grains announced its decision to launch an online platform after observing how frequently consumers seeking organic grains needed to travel from store to store in search of their products. The company is also banking on the idea that customers prefer fresher grain and flour options, as traditional flour found in grocery stores often 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, delivered directly to consumers, it remains uncertain whether the public will prioritize this quality and convenience over the significantly lower prices of pre-milled organic flour from 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, could simply be a marketing tactic to distinguish Organic Grains in the increasingly competitive organic grain and flour market. However, doubts linger about whether this is the right market to enter at this juncture. Recent studies suggest that flour consumption in the U.S. is projected to grow at a 2.3% CAGR, though this growth may be concentrated in commercial products. For instance, tortilla manufacturing has surged by 6% in a year, while dry pasta, dough, and flour mixes have experienced a 4.3% increase. Simultaneously, the gluten-free market is on the rise, with projections estimating its worth at $5.28 million by 2022. These trends may indicate a declining interest among consumers in the niche products that Organic Grains offers.
Although not all flour contains gluten—Organic Grains provides freshly milled amaranth and is considering adding more gluten-free options—today’s consumers might not be inclined to invest time in baking. The demand for convenience is rapidly reshaping the market landscape. For example, Unilever’s Stork brand introduced a pour-and-bake cake mix earlier this year, and Pinnacle’s Duncan Hines has created a mix for “mug cakes,” which typically involve simple recipes using a few pantry essentials mixed and microwaved. If consumers continue to seek such convenience, the potential market for Organic Grains could be quite limited.
In this context, it’s interesting to note that some consumers may also be looking for products that combine health benefits, such as those found in calcium citrate medicine. As trends shift towards convenience and health-oriented options, the demand for specialty items like freshly milled organic flour may face greater challenges. Ultimately, while Organic Grains is navigating a competitive landscape, the success of their venture will depend on how well they adapt to these evolving consumer preferences and whether they can effectively communicate the unique benefits of their products amidst the growing demand for convenience.