The Growing Environmental and Animal Welfare Awareness is Increasing the Demand for Vegan Chicken Nuggets

The vegan chicken nugget market is anticipated to grow at a significant CAGR of 12.1% during the forecast period (2024-2031). The market growth is primarily driven by the rise in the vegan population, and the increase in support by retailers, restaurants, and fast-food chains. Additionally, the surging e-commerce presence is aiding the market growth. However, the stringent guidelines for the clear and informative ingredient labels on the packaging and the high cost of products are restraining the market growth.   

The vegan chicken nugget market is segmented into the source, distribution channels, and geographies. By source, the market is segmented into soy, pea, wheat, and others (canola protein and fava-bean). By distribution channel, the market is segmented into online, and offline. Based on geography the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World (Latin America, and the Middle East & Africa). 

Vegan Chicken Nuggets Market Size and Forecast by Source, 2023 (%)

Soy is anticipated to hold the largest market share during the forecast period. It held 54.0% of the market share, in 2023. As soy has a high protein content and resembles meat, it has a texture comparable to that of a typical chicken nugget. To reach a wider audience, several major players in the food and beverage industry are creating vegan chicken nuggets made from soy. The market players invest in soy protein concentrate for plant-based foods and other products. For instance, in December 2022, Bunge, an agribusiness, food, and ingredients company, plans to invest approximately $550 million to build a fully integrated Soy Protein Concentrate (SPC) and Textured Soy Protein Concentrate (TSPC) facility. The new facility is expected to meet rising customer demand for key ingredients in producing plant-based foods, processed meat, pet food, and feed products. It is expected to ultimately process close to an additional 4.5 million bushels of soybeans.

The online Distribution Channel Segment is anticipated to represent the Highest Growth. 

The offline distribution segment held the largest market share during the forecast period. This is attributed to offline retail channels such as supermarkets, grocery stores, and specialty food shops expanding their selection of vegan products, including chicken nuggets. The increased availability has made it easier for consumers to purchase these products.  Additionally, the online distribution channel is anticipated to grow at the highest CAGR of 13.1% during the forecast period. The segmental growth is driven by the rise in the vegan population, increasing adoption of vegetarian diets owing to escalating health concerns, and accelerating environmental and animal welfare practices.  

The major players in the vegan chicken nuggets market include Beyond Meat, Inc., Impossible Foods Inc., Kellanova, The Kraft Heinz Company, and Unilever PLC, among others. These are contributing significantly to the market growth by adopting various business strategies, such as partnerships, mergers & acquisitions, and product innovation. For instance, in May 2024, Germany was the first McDonald’s market to introduce McPlant Nuggets, which have McDonald’s classic chicken nuggets, however, are made with plant-based Beyond Meat.