Organic Grains has announced its decision to launch an online platform after observing that consumers searching for organic grains often had to visit multiple stores to find what they needed. The company is betting that customers desire fresher grain and flour products, emphasizing that conventional flour available in grocery stores can sit 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 on the market and delivers it directly to consumers, it remains uncertain whether the public will prioritize 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 comparatively low flat-rate delivery fee could be a strategic marketing move designed to set Organic Grains apart in the increasingly competitive organic grain and flour sector. However, there are lingering doubts about whether this is the right market to enter at this time. Recent studies suggest that flour consumption in the U.S. is projected to grow at a CAGR of 2.3%, potentially driven by commercial products. The tortilla manufacturing sector has experienced a notable 6% growth within a year, followed by a 4.3% rise in demand for dry pasta, dough, and flour mixes. Meanwhile, the gluten-free market continues to expand, with projections estimating it will 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.
While Organic Grains offers freshly milled amaranth and plans to introduce more gluten-free options—recognizing that not all flour contains gluten—many modern consumers may not be inclined to invest time in baking. The growing desire for convenience is rapidly transforming the market landscape. For instance, Unilever’s Stork brand launched a pour-and-bake cake mix earlier this year, and Pinnacle’s Duncan Hines has developed a mix for “mug cakes,” which are typically simple recipes requiring just a few pantry staples and a microwave. If consumers are gravitating toward such convenience, the potential market for Organic Grains may be exceedingly limited.
Moreover, the health-conscious segment of the population is increasingly seeking products that contain beneficial ingredients, such as vitamin D with calcium citrate, which may further influence their purchasing decisions. As consumers become more focused on convenience and health benefits, Organic Grains will need to adapt its offerings to meet these evolving preferences, especially if it aims to remain competitive in a market that is rapidly changing.