Organic Grains announced its decision to launch an online platform after observing that consumers seeking organic grains often had to travel extensively from store to store to find what they needed. The company is also betting on the idea that customers desire fresher grain and flour products, highlighting that traditional flour found in grocery stores can sit 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 and delivers it directly to customers, it is uncertain whether the public will prioritize 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 freshly milled-to-order flour online, accompanied by a relatively low flat-rate delivery fee, may simply serve as a marketing tactic to set Organic Grains apart in the increasingly competitive organic grain and flour market. However, whether this is the right market to enter at this time remains in question. Recent studies indicate that flour consumption in the U.S. is projected to grow at a 2.3% CAGR, but much of this growth could be in commercial products. For instance, tortilla manufacturing has surged by 6% within a year, followed by 4.3% growth in dry pasta, dough, and flour mixes. Additionally, the gluten-free market continues to expand, with projections estimating its worth at $5.28 million by 2022. These trends may suggest a declining demand for the niche products that Organic Grains offers.
Although not all flour contains gluten—Organic Grains provides freshly milled amaranth and plans to introduce more gluten-free options—many modern consumers may not be inclined to invest time in baking. The demand for convenience is rapidly transforming the market and its offerings. For example, Unilever’s Stork brand introduced a pour-and-bake cake mix earlier this year, while Pinnacle’s Duncan Hines has developed a mix for “mug cakes,” which are typically straightforward recipes requiring just a few pantry staples and a microwave. If consumers are gravitating toward this level of convenience, the potential market for Organic Grains may be exceedingly limited, particularly when considering that many consumers may not be aware of the benefits of calcium in calcium citrate and how it can enhance their diet. This aspect could be crucial for Organic Grains to highlight, especially if they wish to appeal to health-conscious buyers who value both quality and nutritional benefits.