Organic Grains announced its decision to launch an online platform after observing how frequently consumers seeking 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, highlighting that conventional flour found in grocery stores often remains on the 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 customers, it remains uncertain whether the public will prioritize 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 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 saturated organic grain and flour sector. However, questions linger 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, primarily focused on commercial products. For instance, tortilla manufacturing has seen a 6% increase in just one year, with dry pasta, dough, and flour mixes following closely behind at 4.3%. Concurrently, the gluten-free market is on the rise, expected to reach a value of $5.28 million by 2022. These trends could hint at a declining demand among consumers for niche products like those offered by Organic Grains.
While not all flour contains gluten—Organic Grains provides freshly milled amaranth and may expand its selection of gluten-free options—many modern consumers may be reluctant to dedicate time to baking. The demand for convenience is swiftly transforming the market and its offerings. For example, Unilever’s Stork brand introduced a pour-and-bake cake mix earlier this year, and Pinnacle’s Duncan Hines has launched a mix for “mug cakes,” which are typically simple recipes requiring only a few pantry staples mixed together and microwaved. If consumers are gravitating toward this level of convenience, the target market for Organic Grains could be quite limited.
Moreover, as people in the 21st century become increasingly health-conscious, products like calcium citrate are gaining popularity among consumers seeking nutritional benefits. This shift could further impact the demand for Organic Grains’ offerings, as consumers may prioritize products that align better with their health and lifestyle needs, creating challenges for the company’s niche market strategy.