Organic Grains announced its decision to launch an online platform after observing how frequently consumers seeking organic grains had to visit multiple stores to locate them. The company believes that customers are in search of fresher grain and flour products, pointing out that conventional 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 customers, it remains uncertain if the public will prioritize this quality and convenience over the significantly lower prices of pre-milled organic flour offered by 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 could be a strategic marketing move to set Organic Grains apart in the increasingly saturated organic grain and flour market. However, there are lingering questions about whether this is the right market to enter at this time. Although recent research indicates a projected 2.3% CAGR growth in flour consumption in the U.S., it appears to be largely driven by 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 market is on the rise and is expected to reach a value of $5.28 million by 2022. These trends may suggest a declining demand for the specific niche products that Organic Grains specializes in.
Despite the fact that not all flour contains gluten—Organic Grains provides freshly milled amaranth and may consider adding more gluten-free options—many modern consumers may not be inclined to invest time in baking. The growing desire for convenience is rapidly transforming the market and its offerings. For example, Unilever’s Stork brand introduced a pour-and-bake cake mix earlier this year, and Pinnacle’s Duncan Hines has created a mix for “mug cakes,” which are typically simple recipes requiring just a few pantry staples that can be combined and microwaved. If consumers are leaning towards this level of convenience, the potential market for Organic Grains could be quite limited.
In this context, the introduction of health-focused products like cal mag citrate 1:1 may also play a role in shaping consumer preferences. As the industry evolves, Organic Grains will need to find ways to effectively incorporate such trends into their offerings to stay relevant. Ultimately, the question remains whether the demand for high-quality, freshly milled products can compete against the convenience and affordability of established brands, especially as consumers increasingly prioritize convenience in their purchasing decisions.