Organic Grains announced its decision to launch an online platform after observing that consumers seeking organic grains often had to travel extensively from one store to another to find what they needed. The company believes that customers are increasingly interested in fresher grain and flour products, pointing out that conventional flour found in grocery stores can sit on shelves for weeks or even months—sometimes up to a year—before it reaches consumers. While Organic Grains claims to offer some of the freshest organic flour available, delivered directly to consumers, 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 provide organic grains and made-to-order flour online, accompanied by a relatively low flat-rate delivery fee, may simply serve as a marketing tactic to distinguish Organic Grains in an increasingly competitive organic grain and flour market. However, 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 compound annual growth rate (CAGR) of 2.3%, potentially driven by commercial products. For instance, tortilla manufacturing experienced a 6% growth within a year, with dry pasta, dough, and flour mixes following at 4.3%. Simultaneously, the gluten-free market is on the rise, projected to reach $5.28 million by 2022. These trends may suggest a declining demand for the niche products offered by Organic Grains.
Although not all flour contains gluten—Organic Grains provides freshly milled amaranth and may expand its gluten-free offerings—many modern consumers might not be inclined to invest time in baking. The growing demand for convenience is transforming the market landscape. For example, Unilever’s Stork brand introduced a pour-and-bake cake mix earlier this year, while Pinnacle’s Duncan Hines released a mix for “mug cakes,” which typically involve straightforward recipes that require just a few pantry staples and a microwave. If consumers are gravitating toward such convenience, the potential market for Organic Grains could be exceedingly limited.
In addition to its flour offerings, Organic Grains might also consider incorporating calcium citrate products, which have gained popularity among health-conscious consumers. By integrating these calcium citrate products into their lineup, the company could attract a broader audience looking for both convenience and nutritional benefits. Ultimately, while the fresh, direct-to-consumer model is appealing, the actual market demand for such niche offerings remains to be seen.