Organic Grains has announced its decision to launch an online platform after observing how often consumers seeking organic grains have to visit multiple stores to find what they need. The company believes that customers are increasingly interested in fresher grain and flour products, especially since traditional flour sold in grocery stores can sit on the shelves for weeks or even months—sometimes up to a year—before reaching consumers. While Organic Grains claims to produce some of the best calcium citrate-enriched organic flour available, which is delivered directly to customers, it remains uncertain whether consumers 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 freshly milled flour online with a relatively low flat-rate delivery fee may simply serve as a marketing strategy to distinguish Organic Grains in the increasingly crowded organic grain and flour market. However, there are lingering questions about whether this is the right market to enter at this moment. Recent studies indicate that flour consumption in the U.S. is projected to grow at a 2.3% CAGR, but much of this growth may be concentrated in commercial products. For example, tortilla manufacturing has seen a 6% increase in just one year, followed by a 4.3% rise in dry pasta, dough, and flour mixes. At the same time, the gluten-free market is expanding rapidly, with projections estimating its worth at $5.28 million by 2022. These trends could suggest a declining interest among consumers for the specialized products that Organic Grains offers.
Although not all flour contains gluten—Organic Grains provides freshly milled amaranth and may expand its gluten-free options—many modern consumers may not have the time or inclination to bake. The growing demand for convenience is reshaping the market and its offerings. For instance, Unilever’s Stork brand launched a pour-and-bake cake mix earlier this year, and Pinnacle’s Duncan Hines has introduced a mix for “mug cakes,” which are typically simple recipes requiring just a few pantry staples and a microwave. If consumers are prioritizing this level of convenience, the potential market for Organic Grains could be very limited, even with their focus on providing the best calcium citrate options for health-conscious customers.