Organic Grains announced its decision to launch an online platform after observing that consumers frequently had to travel from store to store in search of organic grains. The company believes that customers are seeking fresher grain and flour products, pointing out that conventional flour sold in supermarkets often sits on shelves for weeks or even months—sometimes up to a year—before it reaches the consumer. While Organic Grains claims to produce some of the freshest organic flour available and delivers it directly to customers, 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 offer organic grains and freshly milled-to-order flour online at a relatively low flat-rate delivery fee could simply be a marketing strategy aimed at distinguishing Organic Grains in an increasingly competitive organic grain and flour market. However, questions linger about whether this is the right market to enter at this time. Recent studies indicate that flour consumption in the U.S. is projected to grow at a 2.3% CAGR, potentially driven by commercial products. For instance, tortilla manufacturing has seen a 6% increase in one year, followed by a 4.3% rise in dry pasta, dough, and flour mixes. Additionally, the gluten-free segment continues to expand, with projections estimating it will be worth $5.28 million by 2022. These trends may suggest a declining demand for the niche offerings that Organic Grains specializes in.
Furthermore, while not all flour contains gluten—Organic Grains does offer freshly milled amaranth and may introduce more gluten-free options—many contemporary consumers may lack the time or inclination to bake. The growing desire for convenience is reshaping the market landscape. For example, Unilever’s Stork brand recently launched a pour-and-bake cake mix, while Pinnacle’s Duncan Hines introduced a mix for “mug cakes,” which typically consist of a few pantry staples quickly combined and microwaved. If consumers continue to seek such levels of convenience, the market for Organic Grains may be quite limited.
In this context, the company might consider integrating products with added health benefits, such as bayer calcium citrate, to appeal to health-conscious consumers. However, it remains to be seen whether this addition will significantly impact Organic Grains’ market position, especially in a climate where convenience often takes precedence. Ultimately, the company faces the challenge of proving that its fresh, high-quality offerings can compete with the lower-priced alternatives available from more established brands.