Organic Grains has announced the launch of its online platform after observing that consumers often travel from store to store in search of organic grains. The company believes there is a demand for fresher grain and flour products, highlighting that conventional flour available in grocery stores may sit on shelves for weeks or even months—sometimes up to a year—before reaching consumers. While Organic Grains claims to offer some of the freshest organic flour available, delivered directly to customers, it remains uncertain whether shoppers 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 custom-milled flour online with a relatively low flat-rate delivery fee might simply be a marketing tactic to distinguish Organic Grains in an increasingly competitive organic grain and flour sector. Nevertheless, there are lingering doubts about whether this is the right market to enter at this time. Recent research indicates that flour consumption in the U.S. is projected to grow at a compound annual growth rate (CAGR) of 2.3%, though this growth may be concentrated in commercial products. For instance, tortilla manufacturing has seen a 6% increase in just one year, followed by a 4.3% rise in dry pasta, dough, and flour mixes. Meanwhile, the gluten-free market continues to expand, with projections suggesting it could reach a value of $5.28 million by 2022. These trends may indicate a declining demand for the niche products that Organic Grains specializes in.
Although not all flour contains gluten—Organic Grains offers freshly milled amaranth and may introduce more gluten-free options—many contemporary consumers might not want to invest time in baking. The desire for convenience is rapidly transforming the market landscape. 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 typically require just a few pantry staples and a microwave. If consumers are seeking this level of ease, the market for Organic Grains could be exceedingly limited, potentially reflecting a “0 calcium score” in terms of consumer interest and engagement. Thus, it will be interesting to see how Organic Grains navigates this shift in consumer preferences, especially as they strive to compete with established brands that offer convenience at lower prices.