Plant-based Nuggets Market

Plant-based Nuggets Market Outlook

The plant-based nuggets market is expected to reach a valuation of USD 448.5 million in 2023 and is anticipated to reach a valuation of USD 708.6 million by 2033. The demand for plant-based nuggets is estimated to record a steady CAGR of 5.8% CAGR.

The perception is that plant-based nuggets are healthier than conventional meat-based nuggets since they usually have less fat, calories, and cholesterol.

Significant Growth Factors of the Market:

• Health and sustainability are key trends in the plant-based nuggets market, as more consumers are seeking out plant-based options for their health benefits and as a way to reduce their environmental footprint.
• Plant-based nuggets are more eco-friendly than meat-based ones since they take less land, water, and other resources to grow. Businesses in the market for plant-based nuggets are emphasizing the sustainability and health benefits of their products to attract potential customers and set themselves apart from conventional meat-based products.
• Convenience is a key trend in the plant-based nuggets market, as more consumers are seeking out plant-based options that can be easily prepared and consumed on the go. This has led to the development of frozen and pre-packaged plant-based nuggets that can be heated up quickly and served as a snack or meal.
• Companies are also partnering with food service providers to offer plant-based nuggets in fast-food chains and restaurants, providing consumers with convenient plant-based options when dining out.
• The plant-based nuggets market is still significantly concentrated in North America and Europe, presenting an opportunity for companies to expand into new geographies such as Asia Pacific and Latin America. These regions are experiencing rapid population growth, urbanization, and increasing disposable incomes, which are driving demand for plant-based products.
• Companies can tap into this opportunity by adapting their products to local tastes and preferences, and by partnering with local retailers and food service providers to increase their reach.
• Companies, furthermore, in the plant-based nuggets market are expanding their product offerings to cater to different consumer preferences and dietary restrictions. This includes the development of gluten-free, soy-free, and nut-free plant-based nuggets, as well as the introduction of new flavors and packaging options.
• The market is expanding as a result of increased diversification, which is expanding the value of plant-based nuggets to a wider range of customers.

Attributes	Value
Plant-based Nuggets Market CAGR (2023 to 2033)	5.8%
Plant-based Nuggets Market Size (2023)	USD 448.5 million
Plant-based Nuggets Market Size (2033)	USD 708.6 million

Sales Analysis of Plant-based Nuggets Market from 2018 to 2022 Vs. Market Outlook For 2023 to 2033

The sales of plant-based nuggets recorded a CAGR of 4.3% from 2018 to 2022 owing to the increased adoption of advanced plant-based nuggets.

Short Term (2023 to 2026): The increasing focus on health and wellness among consumers is driving the market in the short-term period. Plant-based nuggets are perceived as a healthier alternative to traditional meat-based nuggets because they are lower in fat, calories, and cholesterol. Also, plant-based nuggets are a good source of protein, vitamins, and minerals, making them a popular choice among health-conscious consumers.

Medium Term (2026 to 2029): Companies are expanding their product lines in response to the rising demand for plant-based nuggets in order to meet the tastes of a wide range of consumers. With various taste buds, this requires producing a variety of flavors, textures, and components. The choices for plant-based nuggets now include spicy, BBQ, teriyaki, and other flavors. Companies are also innovating in ingredients, using alternative proteins such as peas, soy, and mushroom to create plant-based nuggets with better taste, texture, and nutritional value. Innovative ingredients can also help to address food allergies and intolerances, creating a more inclusive product range.

Long Term (2029 to 2033): Traditional meat production has a significant impact on the environment, contributing to greenhouse gas emissions, deforestation, and water pollution. As consumers become more aware of these environmental issues, they are likely to seek out plant-based alternatives to reduce their environmental footprint.

Green Initiatives Gain Traction with Increasing Government Support

Governments around the world are taking action to support the growth of environmentally sustainable, nutritious, and economically feasible plant-based products. As a result, market players are being presented with lucrative opportunities to innovate and capture market share.

Manufacturers are adopting various approaches and experimenting with ingredients and flavors to ensure that their plant-based products have a taste, texture, and nutritional value that are comparable to their meat-based counterparts. The plant-based nuggets market is expanding significantly as a result of these government initiatives and commercial developments.

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 more. Consumer perceptions of the consumption of animal-based products have evolved as a result of the frequent pandemic outbreaks around the world. Therefore, the market is 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 is expected to aid the expansion of the market

Surging E-commerce Presence Aiding Growth

Businesses across diverse industries are focusing on improving their e-commerce presence to reach more audiences. The e-commerce channel is projected to record a significant CAGR in the coming years. According to FMI, the global plant-based nuggets market is likely to benefit from the growth of the e-commerce platform.

Due to the fear of airborne infections, consumers are now avoiding visits to traditional retail stores and preferring online shopping, which is boosting e-commerce sales. Distributors have been forced by this to switch their attention from retail stores to online sales. The internet distribution system effectively manages the supply chain for many businesses. Manufacturers and distributors may now operate without difficulty due to e-commerce platforms.

Key Challenges

Plant-based nuggets have the potential to revolutionize the food industry by offering a healthier and more sustainable alternative to traditional meat-based products. However, manufacturers are grappling with the daunting task of maintaining the nutritional value, taste, texture, and functionality of these nuggets while keeping the price point competitive.

However, the lack of a standardized approach to choosing appropriate sugar and salt proportions has resulted in a significant setback for the growth of this market. Consumers who prioritize health and nutrition expect these plant-based nuggets to be a wholesome and nutritious option, free from excessive sugar and salt.

Besides, the high price of these products is another hurdle that manufacturers must overcome to achieve market success. Despite these challenges, the plant-based nugget market is poised for significant growth as companies work tirelessly to perfect their recipes and address consumer concerns. With innovation and determination, the industry can overcome these obstacles and provide consumers with a delicious, healthy, and sustainable alternative to meat-based products

Region-wise Analysis

Europe Plant-based Nuggets Market

The market for plant-based nuggets has a promising future, with Europe expected to take the lead. The region is experiencing unparalleled growth, owing to its progressive consumer mindset toward vegetarian and vegan products. Also, governments in Europe are taking a strong stance against animal cruelty and environmental degradation, which is expected to drive the growth of this market.

In this highly competitive market, Europe is home to some of the significant key players, such as Cargill Incorporated, Archer Daniels Midland, Kerry Inc., DuPont, and Glanbia PLC, who are driving growth and innovation. To grow their global market share and diversify their customers, these key players are engaging in strategic initiatives such as product modification, capacity development, and mergers and acquisitions. One of the key markets of Europe is Germany, which is expected to record a CAGR of 7% over the forecast period.

The development of the market in Europe can be credited to the combined efforts of these industry experts and customers with a forward-thinking attitude. FMI anticipates continued exponential market growth as long as this tendency persists, not just in Europe but also globally.

The United States Plant-based Nuggets Market

North America is likely to hold the second leading position in the global market, with the United States leading the market with a 4.4% growth rate. Due to the gradually growing vegetarians in the region, significant plant-based product production is what is driving the region's growth. Following the COVID-19 pandemic, the traditional meat market in the region has been adversely affected, with many companies in the sector shutting down. Contrary to this, sales of faux meat and meat products such as plant-based nuggets have significantly surged.

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. The growing demand for plant-based nuggets, 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 has been encouraging consumers in the favor of a plant-based diet.

Category-wise Insights

Plant-based Chicken Leads the Market

Based on product type, the plant-based chicken segment is expected to hold 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 record 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. Online retail is anticipated to increase as smartphone usage and digital connectivity increase.

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 market.

Competitive Landscape

The global plant-based nuggets market is highly competitive. Due to the increasing focus on the health benefits of a plant-based diet, the market is observing the 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 imitating 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 the 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 channels 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 prominent players operating in plant-based nuggets.

Plant-based Nuggets Market Report: Scope

Attribute	Details
Forecast Period	2023 to 2033
Historical Data Available for	2018 to 2022
Market Analysis	USD million for Value, Metric Tons for Volume
Market Value (2020)	USD 423.6 million
Key Regions Covered	North America; Latin America; The Middle East and Africa; South Asia; Europe; East Asia; Oceania
Key Segments Covered	Source, Product Type, Distribution Channel, and Region
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; Gooddot Vegetarian
Report Coverage	Market Forecast, Competitive Landscape, Region-wise and Category-wise Analysis, Key Trends
Customization & Pricing	Available upon Request

Key Players in the Market

• 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

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
• The Middle East and Africa

Frequently Asked Questions

How Big is the Plant-based Nuggets Market?

The plant-based nuggets market is worth USD 448.5 million in 2023.

What will be the Plant-based Nuggets Market Size by 2033?

The market size is predicted to reach USD 708.6 million by 2033.

What is the leading product type in the Market?

The plant-based chicken segment leads, with a projected CAGR of 25.8% till 2033.

What is Germany’s projected CAGR in the Plant-based Nuggets Market?

Germany’s plant-based nuggets market is slated to rise at a 7% CAGR through 2033.

What is the Growth Outlook for Plant-based Nuggets Market in North America?

North America is anticipated to rise at a 4.4% CAGR through 2033.