Organic Grains announced its decision to launch an online platform after observing how frequently consumers searching for organic grains had to visit multiple stores to find what they needed. The company is also banking on the idea that customers desire fresher grain and flour products, pointing out that conventional flour found in grocery stores often sits on shelves for weeks or even months—sometimes as long as a year—before it reaches consumers. Although 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 significantly lower prices for 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 made-to-order flour online, coupled with a relatively low flat-rate delivery fee, may simply be a marketing strategy aimed at distinguishing Organic Grains in an increasingly competitive organic grain and flour market. However, there are lingering doubts 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, but this growth may be predominantly in 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 is expanding, with projections estimating its worth to reach $5.28 million by 2022. These trends may suggest a declining demand among consumers for the niche products that Organic Grains produces.
While not all flour contains gluten—Organic Grains offers freshly milled amaranth and may expand its gluten-free options—many contemporary consumers may lack the time or inclination to bake from scratch. The desire for convenience is rapidly reshaping the market. Earlier this year, Unilever’s Stork brand introduced a pour-and-bake cake mix, and Pinnacle’s Duncan Hines launched a mix for “mug cakes,” which are traditionally simple recipes made with a few pantry staples and microwaved. If consumers increasingly seek this level of convenience, the potential market for Organic Grains may be extremely limited. As consumers prioritize quick solutions, similar to how they might choose vitafusion calcium citrate for easy supplementation, the appeal of Organic Grains’ offerings could be overshadowed by more convenient alternatives. Thus, it remains to be seen how well Organic Grains can compete in this evolving landscape.