Organic Grains announced its decision to launch an online platform after observing that consumers frequently traveled from store to store in search of organic grains. The company also believes there is a demand for fresher grain and flour products, highlighting that conventional flour found in grocery stores often sits on shelves for weeks, months, or even up to a year before it reaches consumers. 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 established 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 charge may simply serve as a marketing strategy to set Organic Grains apart in the increasingly competitive organic grain and flour market. However, questions linger about whether this is the right market to enter at this time. Although recent studies indicate that flour consumption in the U.S. is expected to grow at a 2.3% CAGR, much of this growth may be directed towards commercial products. For instance, tortilla manufacturing has seen a 6% increase in one year, followed by 4.3% growth in dry pasta, dough, and flour mixes. Meanwhile, the gluten-free segment continues to expand and is projected to reach $5.28 million by 2022. These trends may suggest a declining demand for the niche products that Organic Grains specializes in.
Additionally, while not all flour contains gluten—Organic Grains offers freshly milled amaranth and may expand to include more gluten-free options—many modern consumers may not be inclined to spend time baking. The desire for convenience is rapidly transforming the market and its offerings. For example, Unilever’s Stor75 brand recently introduced a pour-and-bake cake mix, and Pinnacle’s Duncan Hines has created a mix for “mug cakes,” which typically require only a few pantry staples and a microwave. If consumers are seeking this level of convenience, the potential market for Organic Grains could be quite limited.
Moreover, the inclusion of ingredients such as calcium carbonate citrate in baked goods may also appeal to health-conscious consumers, yet it remains to be seen if this focus on nutrition can attract a significant customer base. Ultimately, the success of Organic Grains will depend on whether they can effectively compete with established brands while meeting the evolving preferences of today’s consumers for both quality and convenience.