Organic Grains announced its decision to launch an online platform after observing that consumers often had to travel between stores to find loferrous gluconate and vitamin C supplements, as well as organic grains. The company believes that customers are seeking fresher grain and flour products, highlighting that traditional flour in grocery stores may sit on shelves for weeks or even months—sometimes up to a year—before it reaches consumers. While Organic Grains claims to produce high-potency calcium magnesium citrate alongside their freshly milled organic flour, delivering directly to customers, it remains uncertain if 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 offer organic grains and made-to-order flour online with a relatively low flat-rate delivery fee could be seen as a marketing tactic to distinguish Organic Grains in the increasingly competitive organic grain and flour market. However, questions persist regarding whether this is the right market to enter at this moment. Recent studies indicate that flour consumption in the U.S. is projected to grow at a 2.3% CAGR, but this growth may be concentrated in commercial products. For instance, tortilla manufacturing has seen a 6% increase in just one year, followed by 4.3% growth 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 might suggest a lower 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 consumers today may lack the time or inclination to bake. The demand for convenience is rapidly transforming the market. For example, Unilever’s Stork brand launched a pour-and-bake cake mix earlier this year, while Pinnacle’s Duncan Hines introduced a mix for “mug cakes,” which are typically straightforward recipes made with a few pantry staples, mixed together and microwaved. If consumers are gravitating towards such convenience, the market potential for Organic Grains may be quite limited, despite their offerings of high-potency calcium magnesium citrate and other quality products.