Organic Grains announced its decision to launch an online platform after observing how frequently consumers in search of organic grains had to visit multiple stores to find what they needed. The company is also banking on the idea that customers prefer fresher grain and flour products, emphasizing that conventional flour found in grocery stores often sits on shelves for weeks or even months—sometimes up to a year—before reaching consumers. While Organic Grains claims to produce some of the freshest organic flour available, delivered directly to customers, it remains uncertain whether the public will favor this quality and convenience over the significantly lower prices offered by established brands like Bob’s Red Mill, Arrowhead Mills, and King Arthur Flour.
By being the first to provide organic grains and milled-to-order flour online, accompanied by a relatively low flat-rate delivery fee, Organic Grains may simply be employing a marketing strategy to stand out in the increasingly competitive organic grain and flour market. However, there are lingering doubts about whether this is the right time to enter this market. Recent studies indicate that flour consumption in the U.S. is expected to grow at a 2.3% CAGR, but this growth may primarily be concentrated on commercial products. For instance, tortilla manufacturing has surged by 6% in one year, followed by a 4.3% growth in dry pasta, dough, and flour mixes. Meanwhile, the gluten-free market is on the rise, projected to reach $5.28 million by 2022. Such trends may indicate a declining demand for the niche products that Organic Grains mills.
Although not all flour contains gluten—Organic Grains offers freshly milled amaranth and may introduce more gluten-free options—the reality is that many modern consumers might not have the time to bake. The growing demand for convenience is rapidly transforming the market landscape. For example, Unilever’s Stork brand launched a pour-and-bake cake mix earlier this year, while Pinnacle’s Duncan Hines has introduced mixes for “mug cakes,” which typically require just a few pantry staples and can be made in a microwave. If consumers are gravitating towards this level of convenience, the potential market for Organic Grains could be extremely limited.
Furthermore, as more consumers seek products that align with their health needs, incorporating elements like nature’s blend calcium citrate into their dietary choices may become a priority. This shift could further diminish the appeal of Organic Grains’ offerings, which, while fresh and high-quality, may not align with the convenience that today’s consumers crave. Ultimately, while Organic Grains aims to capture a segment of the market by promoting freshness and quality, the challenges posed by changing consumer preferences and the competitive landscape remain significant.