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 believes there is a demand for fresher grain and flour products, as traditional flour found in grocery stores often sits on shelves for weeks or even months—sometimes up to a year—before it reaches consumers. Organic Grains claims to produce some of the freshest organic flour available, delivering directly to consumers. However, it remains uncertain whether customers will prioritize 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.
By being the first to provide organic grains and made-to-order flour online, accompanied by a relatively low flat-rate delivery fee, Organic Grains may simply be employing a marketing strategy to distinguish itself in the increasingly saturated organic grain and flour market. Nonetheless, doubts linger about whether this is the right time to enter this market. Recent studies indicate that flour consumption in the U.S. is projected to grow at a 2.3% CAGR, yet this growth may be focused on commercial products. For instance, tortilla manufacturing has seen a 6% increase in one year, followed by 4.3% growth in dry pasta, dough, and flour mixes. Additionally, the gluten-free market continues to expand, with projections estimating its worth at $5.28 million by 2022. Such trends hint at a potentially lower demand for the niche products that Organic Grains specializes in.
While not all flour contains gluten—Organic Grains offers freshly milled amaranth and may expand its gluten-free options—many contemporary consumers might not be inclined to invest time in baking. The growing appetite for convenience is reshaping the market and its offerings. For example, Unilever’s Stork brand introduced a pour-and-bake cake mix earlier this year, while Pinnacle’s Duncan Hines has launched a mix for “mug cakes,” which are made using simple recipes that only require a few pantry staples and a microwave. If consumers are gravitating towards such convenience, the market for Organic Grains could be exceedingly limited.
Moreover, as people become more health-conscious, there is an increasing interest in products that support overall wellness, such as nature’s blend calcium citrate with vitamin D. With the rising popularity of health supplements, Organic Grains could consider incorporating such elements into their offerings to appeal to health-minded consumers. However, the challenge remains whether these adaptations can significantly increase demand in a market that seems to be leaning towards convenience rather than niche quality products. As the market evolves, the integration of health-oriented products like nature’s blend calcium citrate with vitamin D could be a strategic move for Organic Grains to explore, particularly as they navigate consumer preferences in an ever-changing landscape.