Organic Grains announced its decision to launch the website after observing how frequently consumers searching for organic grains had to visit multiple stores to find what they needed. The company believes that customers are in search of fresher grain and flour products, highlighting that conventional flour found in grocery stores often sits 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 the public will favor this quality and convenience over the significantly lower prices of pre-milled organic flour from brands like Bob’s Red Mill, Arrowhead Mills, and King Arthur Flour. Being the first to provide organic grains and milled-to-order flour online, accompanied by a relatively low flat-rate delivery fee, might just be a marketing tactic to set Organic Grains apart in the increasingly competitive organic grain and flour market.
However, questions linger regarding 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, which may be primarily driven by commercial products. For instance, the tortilla manufacturing segment has seen a 6% increase in one year, followed by a 4.3% rise in dry pasta, dough, and flour mixes. Meanwhile, the gluten-free market continues to expand, with projections estimating its worth at $5.28 million by 2022. These trends could suggest a diminishing demand among consumers for the niche products that Organic Grains mills.
While not all flour contains gluten—Organic Grains offers freshly milled amaranth and may introduce more gluten-free options—many modern consumers may be reluctant to invest the time in baking. The growing desire for convenience is rapidly transforming the market and available choices. For instance, Unilever’s Stork brand launched a pour-and-bake cake mix earlier this year, and Pinnacle’s Duncan Hines has developed a mix for “mug cakes,” which consist of simple recipes that require just a few pantry staples and a microwave. If consumers are gravitating toward this level of convenience, the market for Organic Grains could be exceedingly limited. Consequently, the company’s approach to calcitrate with d might need to evolve to meet the changing preferences of today’s consumers.