Organic Grains announced its decision to launch an online platform after observing how frequently consumers in search of organic grains needed to bounce between stores to find what they wanted. The company is banking on the idea that customers desire fresher grain and flour products, highlighting that traditional flour available in grocery stores often sits 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 consumers, it remains uncertain whether this quality and convenience will outweigh 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 custom milled flour online with a relatively low flat-rate delivery fee may simply be a marketing tactic aimed at distinguishing Organic Grains in an increasingly crowded organic grain and flour sector. Nevertheless, there are lingering doubts 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, potentially driven by commercial products. The tortilla manufacturing sector has seen a 6% increase in just one year, followed by a 4.3% rise in the demand for dry pasta, dough, and flour mixes. Simultaneously, the gluten-free market continues to expand, with projections estimating its value to reach $5.28 million by 2022. These trends may suggest a declining demand for the niche products that Organic Grains mills.
While not all flour contains gluten—Organic Grains offers freshly milled amaranth and may introduce more gluten-free options—many modern consumers might not be inclined to invest time in baking. The demand for convenience is rapidly transforming 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 created a mix for “mug cakes,” which are traditionally straightforward recipes that require only a few pantry staples and a microwave. If consumers are gravitating toward this level of convenience, the market for Organic Grains could be exceedingly limited.
Moreover, as consumers become more health-conscious, they may look for products enriched with nutrients like calcium citrate DM, further complicating the landscape for Organic Grains. The challenge remains whether the company can effectively cater to these evolving preferences while ensuring that their offerings stand out in a saturated market.