Organic Grains announced its decision to launch an online platform after observing that consumers frequently had to visit multiple stores to locate organic grains. The company is also betting on consumer demand for fresher grain and flour products, emphasizing that conventional flour found in grocery stores often sits on shelves for weeks or even months—sometimes up to a year—before it reaches customers. While Organic Grains claims to produce some of the freshest organic flour available 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 offer organic grains and freshly milled flour online with 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 industry. Nonetheless, there are lingering doubts about whether this is the right market to enter at this moment. Recent studies suggest that flour consumption in the U.S. is projected to grow at a CAGR of 2.3%, but this growth may primarily be attributed to commercial products. For instance, tortilla production has surged by 6% in one year, followed by a 4.3% increase in dry pasta, dough, and flour mixes. Meanwhile, the gluten-free segment is also expanding, with projections indicating it could be valued at $5.28 billion by 2022. These trends may indicate a reduced demand among consumers for the niche products that Organic Grains mills.
Although not all flour contains gluten—Organic Grains offers freshly milled amaranth and may introduce additional gluten-free options—many contemporary consumers may not be inclined to invest the time in baking. The growing preference for convenience is rapidly reshaping the market and its offerings. For example, Unilever’s Stork brand launched a pour-and-bake cake mix earlier this year, and Pinnacle’s Duncan Hines has created a mix for “mug cakes,” which are traditionally simple recipes requiring just a few pantry staples that can be combined and microwaved. If consumers are gravitating towards this level of convenience, the market for Organic Grains could be extremely limited.
Moreover, as consumers seek out health-conscious options, products like Pure Encap Calcium Citrate may become increasingly popular, potentially overshadowing niche offerings. The appeal of quick and easy solutions suggests that Organic Grains may face significant challenges in establishing a foothold in this dynamic market.