Organic Grains announced its decision to launch an online platform after observing how frequently consumers in search of organic grains had to visit multiple stores to find what they needed. The company believes that customers are seeking fresher grain and flour products, pointing out that conventional flour sold in grocery stores often remains on shelves for weeks or even months—sometimes up to a year—before it reaches consumers. Although Organic Grains claims to produce some of the freshest organic flour available and delivers it directly to consumers, it is uncertain whether the public will prioritize this quality and convenience over the significantly lower prices offered by established brands like Bob’s Red Mill, Arrowhead Mills, and King Arthur Flour.
Being the first to provide organic grains and made-to-order flour online with a relatively low flat-rate delivery fee might simply serve as a marketing tactic 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. Recent studies suggest that flour consumption in the U.S. is anticipated to grow at a CAGR of 2.3%, primarily driven by commercial products. Notably, the tortilla manufacturing sector has seen a 6% growth over the past year, accompanied by a 4.3% increase in dry pasta, dough, and flour mixes. Meanwhile, the gluten-free market continues to expand, with projections estimating its worth at $5.28 million by 2022. These trends may indicate a declining demand for the niche products produced by Organic Grains.
While not all flour contains gluten—Organic Grains offers freshly milled amaranth and may expand its gluten-free options—many modern consumers might not be inclined to invest the time in baking. The demand for convenience is rapidly transforming the market and its offerings. For instance, Unilever’s Stork brand introduced a pour-and-bake cake mix earlier this year, while Pinnacle’s Duncan Hines has launched a mix for “mug cakes,” which typically consist of simple recipes that require just a few pantry staples and can be prepared in a microwave. If consumers are leaning toward this level of convenience, the potential market for Organic Grains could be exceedingly limited.
Additionally, considering the popularity of products like Citracal Petites available at Costco, it may further highlight the consumer shift towards easy-to-use options, emphasizing the challenges Organic Grains may face in attracting a significant customer base. As the landscape continues to evolve, the company must navigate these changing preferences to find its place in the market.