Plant-based Nuggets Market

2020 Analysis and Review: Plant-based Nuggets Market by Product Type– Plant-based Chicken, Plant-based Beef, and Plant-based Pork for 2020 – 2030

Introduction

The global plant-based nuggets market is gaining immense traction driven by the surging demand for meat alternatives. Their similar taste and texture to that of meat-based nuggets is driving the market. Due to changing eating habits of consumers, the demand for plant-based food products is surging.  Vegan and flexitarian population have increased, which is positively affecting sales of plant-based nuggets as a popular snack.

The demand for plant-based nuggets is likely to surge further in response to the increasing incidence of lactose intolerance. With consumers around the world looking for plant-based alternatives to replace dairy-based and milk products, plant-based nuggets sales are likely to rise further.

Consumers around the world are rendered more conscious, thanks to widespread coverage given to animal atrocities. Various campaigns are organized to educate them about the ill effects of such practices on the environment. As a result of such initiatives an increasing number of consumers are swaying away from meat consumption to healthier and eco-friendlier plant-based alternatives. This is expected to bode well for the global market.

According to the Center for Nutritional Studies, a high-fiber diet helps in keeping gut lining strong and reduces the chance of side-effects or allergic reactions due to food ingested. As more and more allergic consumers are switching to a plant-based diet, plant-based nuggets sales are likely to surge.

Government Initiatives Favoring Growth

Governments across various countries are adopting initiatives to promote environmentally friendly, nutritious, and feasible plant-based products. This is, in turn, offering lucrative opportunities to market players. Moreover, manufacturers are adopting various approaches and experimenting with the source of materials to ensure plant-based nuggets have taste, texture, and nutritional profile similar to their meat-based counterparts.

Spurred by these factors the market is forecast to exhibit impressive growth. According to FMI, the plant-based nuggets market will exhibit a CAGR of nearly 26% between 2020 and 2030.

Increasing Demand for Organic & Additive-free Labels

The world was already experiencing a rise in various chronic diseases and the unpredicted COVID-19 pandemic triggered the situation even further. With the repetitive outbreaks of pandemics across the world, consumers have changed their perception about the consumption of animal-based products.

Therefore, the market observing a rise in the demand for products that are made from natural and organic ingredients and are labeled with no additives. This has led to bode favorably for plant-based nuggets. Manufacturers are ensuring minimum or no use of artificial ingredients without compromising the taste and texture of nuggets. FMI forecasts that this coordination between the changed manufacturer and consumer behavior will aid the expansion of the market.

Surging Ecommerce Presence Aiding Growth

Business across diverse industries are focusing on improving their ecommerce presence to reach more widespread audience. The e-commerce channel is projected to grow at the highest CAGR in the coming years. According to FMI, the global plant-based nuggets market will be benefitted from the growth of e-commerce.

Consumers are now avoiding visits to retail stores and choosing e-commerce due to the fear of air-borne diseases which is giving impetus to sales via ecommerce. This has also compelled distributors to shift their focus from retail stores to e-commerce. The supply chain of many companies is handled correctly due to the online distribution system. E-commerce has facilitated manufacturers and distributors to operate in a hassle-free manner.

COVID-19 Stimulates Growth of the Market

The on-going COVID-19 pandemic is unfolding every day and re-shaping everything from the biggest global market to startups to consumers' behavior. Sales of plant-based nuggets has significantly increased since the pandemic outbreak. The fear of infection due to this crisis made consumers change their diets. Medical studies have revealed that the disease has a strong influence on people with health conditions like diabetes, hypertension, and heart disease.

This further made manufacturers and distributors experience unprecedented demand for plant-based nuggets since consumers with prior illnesses are focusing more on eating healthy. COVID-19's connection with animal sources has resulted in the switching of a large population from animal-based to plant-based products. Moreover, the production of plant-based nuggets requires less labor as compared to chicken nuggets. This has lessened the burden of the safety of employees on manufacturers and has given an obstacle-free pathway to the growth of the market.

Key Challenges

Maintaining the high nutritional value, taste, texture, and functionality of plant-based nuggets is a major challenge manufacturers are dealing with, which is in turn affecting the growth of the market. Choosing appropriate sugar and salt proportion for different health issues has been retraining growth.

If health and nutrition are the highest concerns leading to consumers choose a plant-based nugget, then it should cater to that expectation of healthy and not be high in sugar. Furthermore, high prices of products are likely to pose a challenge for the industry. The market is forecast to rise significantly by overcoming all challenges.

Region-wise Analysis

Europe Plant-based Nuggets Market

The market in Europe accounts for the lion's share and is forecast witness to the fastest growth through the forecast period. The growth of the region is on account of a positive consumer attitude towards vegetarian and vegan-meat products. Government administrations and their stringent regulations against animal cruelty and harming the environment have been augmenting the growth of the plant-based nugget market in Europe.

The Europe plant-based nuggets market is highly competitive and the presence of various strong players like Cargill Incorporated, Archer Daniels Midland, Kerry Inc., DuPont, and Glanbia PLC is propelling the growth of the regional market. Key manufacturers in Europe are executing strategic initiatives, such as capacity increase, product modification, and mergers & acquisitions, in order to increase their sales globally and expand their consumer base.

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North America Plant-based Nuggets Market

North America holds the second leading position in the global plant-based nuggets market. Growth witnessed in the region is driven by large-scale production of plant-based products due to the consistently increasing vegetarian population.

Following the COVID-19 pandemic, the traditional meat market in the region has been adversely affected, with a large number of companies in the sector shutting down. Contrary to this, sales of faux meat and meat products such as plant-based nuggets has significantly surged.  

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South Asia Plant-based Nuggets Market

The growing demand for natural plant-based nuggets in South Asia has made it one of the top regions in terms of market value. Owing to growing demand, manufacturers have been focusing on increasing their production of plant-based nuggets. They are working to ensure their products offer a unique combination of health and taste.

This is estimated to augment market growth in the region. The increasing awareness regarding animal welfare and environmental issues associated with it have been encouraging consumers in the favor of plant-based diet. This is further augmenting the growth in the market.

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Category-wise Insights

Plant-based Chicken Leads the Market

Based on product type, the plant-based chicken segment holds the top position. Consumers' preference for plant-based chicken over plant-based beef and plant-based pork due to its good texture, taste, and more nutritious content is projected to drive the growth of the segment. The segment is expected to grow with a CAGR of 25.8% during the forecast period.

HoReCa Remains Dominant Distribution Channel

By distribution channel, the HoReCa segment is currently leading the market. According to FMI, this segment is anticipated to remain dominant by the end of the forecast year. The market is expected to witness remarkable growth via hypermarkets, convenience stores, and specialty food stores. Due to the rising digital penetration and ownership of smartphones, online retail is forecast to rise as well.

Soy-based Protein Leads by Source

By source, the soy-based protein segment is forecast to continue to lead during the assessment period. The growth of the segment is attributed to its wide use as a base ingredient for plant-based nuggets, owing to its high protein content and meat-like texture. The increasing health concerns related to the consumption of animal protein-sourced foods and choosing flexitarian and vegetarian diets over animal-based products are expected to drive the global market.

Competitive Landscape

The global plant-based nuggets market is highly competitive. Due to the increasing focus on health benefits of a plant-based diet, the market is observing continuous entry of new players. Key players are therefore concentrating on research & development and joint ventures to diversify their portfolio and launch innovative products more frequently.

Manufacturers also are focusing on mimicking the taste and texture of plant-based nuggets. For instance, the American fast-food chain Burger King has launched plant-based chicken nuggets that are soft and meat-like from inside and give a delicious vegetable-based option for all meat lovers who want to decrease their meat consumption.

Key players in the market are identified by their strong sales channel with restaurants and retail chains globally for the distribution of their plant-based nuggets. FMI offers an in-depth study of the competitive landscape of the global market and lists some of the prominent players operating in the plant-based nuggets market.

These include:

  • McDonald's Corporation
  • Burger King
  • KFC
  • Tyson Foods, Inc.
  • Nuggs (Simulate, Inc).
  • Alpha Foods
  • 365 Everyday Value
  • Kraft Foods, Inc.
  • Beyond Meat
  • Field Roast Grain Meat Co., Inc.
  • Nestlé S.A.
  • The Vegetarian Butcher
  • Heura Foods
  • Gooddot Vegetarian

The list is only indicative – a full list of global plant-based nuggets market key players is available upon request

Plant-Based Nuggets Market Report: Scope

Attribute

Details

Forecast Period

2020-2030

Historical Data Available for

2013-2019

Market Analysis

US$ Mn for Value, Metric Tons for Volume

Market Value (2020)

US$ 423.6 Mn

Key Regions Covered

North America, Latin America, Middle East and Africa, South Asia, Europe, East Asia, Oceania

Key Segments Covered

Source, Product Type, Distribution Channel, and Regions

Key Companies Profiled

McDonald's Corporation, Burger King, KFC, Tyson Foods, Inc., Nuggs (Simulate, Inc)., Alpha Foods, 365 Everyday Value, Kraft Foods, Inc., Beyond Meat, Field Roast Grain Meat Co., Inc., Nestlé S.A., The Vegetarian Butcher, Heura Foods, and Gooddot Vegetarian

Report Coverage

Market Forecast, Competitive Landscape, Region-wise and Category-wise Analysis, COVID-19 Impacts, Key Trends

Customization & Pricing

Available upon Request

Key Questions Answered by the Report

  • At what CAGR is the plant-based nugget market is expected to rise?

    The global plant-based pork market is forecast to rise at a CAGR of 26.0% between 2020 and 2028.

  • Which is the largest market for plant-based nuggets?

    Europe currently holds dominance backed by surging demand and production in strong markets like UK and Germany.

  • Which are the top companies in the plant-based nuggets market?

    Some of the leading companies operating in the plant-based nuggets market are McDonald's Corporation, Burger King, KFC, Tyson Foods, Inc., Nuggs (Simulate, Inc)., Alpha Foods, 365 Everyday Value, Kraft Foods, Inc., Beyond Meat, Field Roast Grain Meat Co., Inc., Nestlé S.A., The Vegetarian Butcher, Heura Foods, and Gooddot Vegetarian among others.

  • What is the outlook on the plant-based nuggets market?

    Due to COVID-19, FMI estimates a positive growth for the plant-based pork market due to the high preference of consumers over natural and organic products. The constantly rising demand for plant-based nuggets due to increasing health awareness and environmental concerns will aid the expansion of this market.

  • Which key challenge witnessed by companies in plant-based nuggets market?

    To maintain the high nutritional value, taste, texture, and functionality of plant-based nuggets with price that is affordable by every class of society are the major challenges manufacturers are dealing with which is, in turn affecting the growth of the market.

  • Which is most lucrative category in the plant-based nuggets market?

    Plant-based chicken is witnessing the maximum sales and production by product type. FMI foresees this segment to remain as lead during the forecast period.

Enquiry before Buying

  • Is this research conducted by Future Market Insights?

    Yes, the report on the plant-based nuggets market has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to a research analyst.

  • What research methodology is followed by FMI?

    FMI follows a methodology that encompasses demand-side assessment of the market and triangulates the same through supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions. Request detailed methodology.

  • Who are the respondents for primary research?

    FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.

  • What are the sources of secondary research?

    FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.

  • Is a sample of this report available for evaluation?

    Yes, you can request a sample  and it will be sent to you through an email.

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Key Segments

Distribution Channel

  • Retail
    • Hypermarkets/Supermarkets
    • Convenience Stores
    • Specialty Food Services
  • Online Retail
  • HoReCa ( Food Service Sector )

Source

  • Soy-based Protein
  • Wheat-based Protein
  • Pea-based Protein
  • Canola-based Protein
  • Fava Bean-based Protein
  • Potato-based Protein
  • Rice-based Protein
  • Lentil-based Protein
  • Flax-based Protein
  • Chia-based Protein
  • Corn-based Protein

Product Type

  • Plant-based Chicken
  • Plant-based Pork
  • Plant-based Beef

Regional Outlook

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East and Africa

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