Organic Grains announced its decision to launch an online platform after observing that consumers frequently had to travel between various stores to find organic grains. The company is also banking on the demand for fresher grain and flour products, pointing out that conventional flour found in grocery stores often remains on shelves for weeks or even months—sometimes 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 customers, it remains uncertain whether consumers 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 with a relatively low flat-rate shipping fee may simply be a marketing tactic to set Organic Grains apart in the increasingly competitive organic grain and flour sector. However, doubts linger about whether this is the right market to enter at this moment. Recent studies indicate that flour consumption in the U.S. is projected to grow at a 2.3% CAGR, though this trend may be driven primarily by commercial products. For instance, tortilla manufacturing has surged by 6% in just one year, followed by a 4.3% increase for dry pasta, dough, and flour mixes. Meanwhile, the gluten-free segment continues to expand and is expected to be valued at $5.28 million by 2022. These developments may suggest a declining demand among consumers for the niche products offered by Organic Grains.
While not all flour contains gluten—Organic Grains offers freshly milled amaranth and may introduce more gluten-free options—many contemporary consumers might not be inclined to invest time in baking. The growing preference for convenience is reshaping the market and its offerings. For example, Unilever’s Stork brand launched a pour-and-bake cake mix earlier this year, while Pinnacle’s Duncan Hines introduced a mix for “mug cakes,” which typically consist of simple recipes made with a few pantry staples and microwaved. If consumers are leaning towards such levels of convenience, the potential market for Organic Grains could be exceedingly limited.
In this context, the focus on providing the easiest to swallow calcium citrate might resonate with health-conscious consumers seeking both quality and convenience. As Organic Grains navigates this landscape, the challenge will be integrating these elements while ensuring they meet the evolving needs of their target audience. The question remains: will the emphasis on freshness and quality, exemplified by their unique offerings like freshly milled amaranth, outweigh the convenience sought by today’s consumers? Ultimately, the company’s success will hinge on its ability to adapt to these shifting preferences and demands in the organic grain market.