Organic Grains has decided to launch its online platform after observing that consumers searching for organic grains frequently have to visit multiple stores to find what they need. The company believes that customers prioritize fresher grain and flour products, pointing out that conventional flour available in grocery stores often sits on shelves for weeks or even months—sometimes up to a year—before it reaches the consumer. While Organic Grains claims to produce some of the freshest organic flour on the market and delivers it directly to consumers, 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 made-to-order flour online, along with a relatively affordable flat-rate delivery fee, may simply be a marketing tactic to distinguish Organic Grains in the increasingly competitive organic grain and flour sector. However, doubts linger regarding whether this is the right market for them to enter at this time. Recent studies indicate that while flour consumption in the U.S. is projected to grow at a compound annual growth rate of 2.3%, this increase may mainly stem from commercial products. For instance, tortilla production has surged by 6% over the past year, followed by a 4.3% rise in dry pasta and flour mixes. Concurrently, the gluten-free market is expanding, with projections suggesting it could be valued at $5.28 million by 2022. These trends might indicate a declining demand among consumers for the niche products that Organic Grains mills.
Moreover, while not all flour contains gluten—Organic Grains offers freshly milled amaranth and may introduce additional gluten-free options—many modern consumers may be unwilling to invest the time required to bake. The demand for convenience is rapidly reshaping the market landscape. For example, Unilever’s Stork brand introduced a pour-and-bake cake mix earlier this year, while Pinnacle’s Duncan Hines launched a mix for “mug cakes,” which typically consist of simple recipes that can be quickly prepared with a few pantry staples and microwaved. If consumers are gravitating towards this level of convenience, the market for Organic Grains could be extremely limited, especially when alternatives like calcium citrate tablets are readily available for quick nutritional needs. Thus, the future of Organic Grains in this competitive landscape remains uncertain and may hinge on whether it can adapt to these evolving consumer preferences, as seen with the growing popularity of convenient options that may overshadow the appeal of freshly milled products.