Title: The Rise of Plant-Based Chicken: A New Frontier in the Meat Alternatives Market
The chicken sandwich wars may have been the highlight of last year, but in 2021, the focus has shifted to a new battleground: plant-based chicken. This month, the two major players in the plant-based meat industry, Beyond Meat and Impossible Foods, announced the release of new chicken products. On July 8, Beyond Meat launched its Beyond Chicken Tenders at approximately 400 restaurants across the country. Just a week later, Impossible Foods shared with Bloomberg its plans to introduce chicken nuggets this fall.
Beyond Meat’s Chief Innovation Officer, Dariush Ajami, explained in an interview that the company has invested years into enhancing its chicken offerings. Although they first released plant-based chicken strips in grocery stores back in 2012, those were quietly discontinued in 2019 as the company shifted its focus to ground meat and sausages. After nearly a decade of research and development, Beyond Meat is ready to re-enter the chicken market. Ajami stated that these new strips, which are based on fava bean protein, have consistently received consumer ratings comparable to actual chicken.
Behind the scenes, a significant amount of effort has been put into meeting Beyond Meat’s current product standards, with around 200 scientists involved in the development process. Ajami noted that their innovation center is equipped with advanced technology, such as scanning electron microscopy and confocal laser microscopy, to analyze the microstructure of texturized plant protein and compare it with chicken muscle tissue to replicate its texture and flavor. He elaborated on the use of high-tech electronic “noses” and “mouths” designed to assess the aroma, composition, texture, and mouthfeel of plant-based chicken products.
While Impossible Foods chose not to disclose specific details regarding its upcoming chicken launch, company President Dennis Woodside mentioned that they have been working on their chicken product for an extended period. The base for Impossible’s chicken nuggets consists of soy and sunflower oil, providing juiciness, but notably lacks the signature plant-based heme that delivers a meat-like flavor.
Beyond Meat and Impossible Foods are joining a rapidly growing category that shows no signs of slowing down. According to data from market analysis provider SPINS, plant-based chicken is expanding at an impressive rate of 18%, outpacing the 4% growth of traditional chicken from animals. This year has seen numerous high-profile plant-based chicken product launches, significant funding for startups, and plans for international manufacturers to expand into the U.S. market. Jeff Crumpton, a retail business consultant at SPINS, noted that chicken analogs are now the second most consumed category of plant-based meat, following beef-like burgers.
With chicken accounting for 45% of meat consumption, plant-based alternatives present an enticing option for consumers. Emma Ignaszewski, a corporate engagement project manager at The Good Food Institute, emphasized the vast dollar and volume opportunities in this segment. “Having a tasty, affordable plant-based chicken option has the potential to deeply transform our food system,” she stated.
Over the past fifty years, poultry—particularly chicken—has emerged as the preferred meat choice among U.S. consumers. USDA statistics cited by the National Chicken Council reveal that, fifty years ago, the average consumer consumed more than double the amount of beef compared to chicken, with 83.9 pounds of beef versus 40.1 pounds of poultry. In 2020, that average American consumed 97.6 pounds of chicken. This trend of rising chicken consumption is mirrored globally, with projections indicating that chicken will lead meat market growth through 2030, according to data from the Organization for Economic Cooperation and Development and the Food and Agriculture Organization of the United Nations.
The perception of chicken as a healthier option, combined with mass production that drives prices down and maintains high availability, has contributed to its dominance over beef and pork. During the pandemic, many consumers began to view plant-based meat as an even healthier alternative. “We see that continue to kind of migrate from something like chicken or turkey sausage into plant-based chicken sausage,” Crumpton remarked.
Among the plant-based chicken products experiencing significant growth is the nugget. SPINS data indicates that sales of nuggets surged by 48.4% between mid-May 2020 and mid-May this year, with overall sales across all plant-based and analog chicken products also rising. Sam Terris, co-founder and COO of plant-based chicken company Simulate, noted that chicken nuggets are already ubiquitous in the U.S., which played a significant role in his company’s decision to focus on that product. “It’s a very low barrier to entry,” he explained. “You can easily convince anyone to try a plant-based chicken nugget.”
The Good Food Institute’s Ignaszewski pointed out that plant-based meat is effectively attracting omnivores, with many products exceeding consumer expectations. “There’s definitely a perception gap where the products are actually outperforming consumer expectations in many ways,” she stated. Companies are making strides in creating high-fidelity products that closely mimic the taste, texture, and appearance of animal-based meat, and plant-based chicken products that succeed in this regard will continue to drive growth in the category.
Michael Robbins, responsible for policy and communications at the Plant-Based Foods Association, emphasized that there is ample shelf space for products beyond plant-based burgers. “As the plant-based beef market continues to thrive, companies will undoubtedly explore other areas for growth,” Robbins said, noting that chicken represents a substantial part of the American diet and an immense opportunity for sustainable, healthy alternatives.
Plant-based chicken is a diverse category, encompassing nuggets, tenders, patties, and non-breaded strips, as well as prepared products containing plant-based chicken shreds or chunks. Some offerings feature kid-friendly shapes, while others aim for a more authentic meat-like texture. Products may utilize a variety of plant proteins, including pea, soy, or fava bean.
Robbins believes this diversity is beneficial for the segment, showcasing a wide range of offerings, formulations, and potential consumers. There is no single technological advancement propelling the growth of plant-based chicken; however, extrusion technology, which uses heat and motion to alter protein shapes, plays a vital role. Many companies are experimenting with specialized high-moisture extrusion processes to enhance juiciness, flavor, and mouthfeel.
According to Ignaszewski, the breaded format of most plant-based chicken products naturally aligns more closely with traditional chicken. The breading not only meets consumer expectations regarding texture and cooking processes but also allows manufacturers to experiment with various flavor and texture enhancements. However, she refrains from labeling plant-based burgers as more challenging to create than plant-based chicken, as both face their unique challenges.
Crumpton noted that the last year has seen a variety of plant-based chicken launches, many of which emphasize natural and specialty profiles, trendy global flavors, and cleaner ingredient lists compared to older products. The latest generation of plant-based chicken highlights short ingredient lists and careful sourcing, including organic and non-GMO components.
As consumers increasingly embrace plant-based diets for various reasons—including health, sustainability, and the desire for novel culinary experiences—the segment as a whole has improved in meeting meat-like expectations, according to Sara Wheeler, general manager of Nestlé’s plant-based Sweet Earth brand. The food giant recognized the opportunity to develop its Sweet Earth Mindful Chik’n line, a refrigerated, ready-to-eat product that is unbreaded.
Wheeler explained, “The top of the funnel has become much broader and bigger. More people are saying, ‘OK, I’m comfortable coming into this space. It doesn’t seem as intimidating as it did several years ago when products didn’t taste as good.'”
As the plant-based chicken market becomes more crowded, companies strive to differentiate themselves. The Good Food Institute’s Ignaszewski noted that some companies prioritize achieving price parity with conventional chicken, while others emphasize the environmental and social benefits of plant-based options. A life-cycle assessment commissioned by her organization revealed that alternative proteins, including plant-based chicken, generate 86% less greenhouse gas, require 96% less water, and occupy 97% less land than traditional chicken.
Nestlé’s Wheeler emphasized that Mindful Chik’n, first launched by Sweet Earth in 2019, distinguishes itself due to its versatility as a product of cooked chicken pieces, unlike breaded nuggets or tenders. In response to consumer feedback, Nestlé made Mindful Chik’n ready to eat directly from the package, allowing it to be easily incorporated into salads, sandwiches, or burritos. The company has also introduced diverse international flavor profiles, including Mindful Chik’n Chipotle Chik’n Strips and Shredded Korean Style BBQ offerings.
The main focus of Mindful Chik’n’s product design is to cater to flexitarians’ lifestyles. Wheeler stated, “We look at chicken and the way consumers use it in their kitchens. That understanding drives our efforts as we develop these products.” The availability of Mindful Chik’n in grocery stores nationwide is crucial for its success, as easy access increases the likelihood of purchase and intended usage. Wheeler reported that repeat purchase rates for Mindful Chik’n have been notably high.
Daring Foods, a newer player in the plant-based market, shares a similar vision. Co-founder and CEO Ross Mackay expressed a desire to create a healthy and tasty plant-based chicken. The brand, which entered the U.S. market last year, currently offers four SKUs—Original, Original Breaded, Lemon & Herb, and Cajun—designed to be versatile enough for frequent consumption across a variety of meals. Mackay highlighted the importance of a short ingredient list, stating that their Original version includes only water, soy protein concentrate, sunflower oil, natural flavoring, and spices, reflecting their commitment to delivering a clean plant-based meat option without compromising taste and texture.
Daring recently completed a $40 million funding round aimed at retail and foodservice expansion, as well as team growth. The brand is already available in over 1,100 retail locations and through its own website.
Kellogg’s MorningStar Farms, a veteran in the plant-based sector, continues to innovate its products. The company has offered plant-based chicken nuggets for years, but with the introduction of the newer Incogmeato brand, it has leveraged technology to enhance its offerings with Chik’n Tenders. Sara Young, general manager of MorningStar Farms, explained that the new Incogmeato products aim to provide a more realistic plant-based chicken experience. The high moisture extrusion process used for these products is said to replicate the fibrous texture and bite of meat more accurately.
Young noted, “We needed a broader range of products to meet the flexitarian consumer’s needs.” The ‘tear experience’—the way the product looks, cooks, and tastes—was a key focus for the development team over the past 18 months.
Simulate, a relatively recent entrant that launched in 2019, embraces an iterative development approach, continually refining its products based on consumer feedback. Currently, Simulate produces only chicken analogs: Nuggs nuggets and Discs patties. The company has benefited from the pandemic, reportedly reaching a valuation of over $250 million. Initially starting as a direct-to-consumer operation, Simulate has expanded into retail stores and ghost kitchens. Nuggs are now available in over 5,000 retail locations, with plans to reach an additional 10,000 by year-end.
Recently, Simulate secured a $50 million investment round, led by Reddit founder Alexis Ohanian’s venture firm, Seven Seven Six, with additional backing from McCain Foods, which manufactures Simulate’s products. Terris indicated that the funding will be used to enhance their technology and expand operations, potentially quadrupling the size of their tech team and exploring acquisitions outside the U.S.
Terris attributes Simulate’s success to the meticulous attention to detail from the tech team in improving product quality. “Clever marketing can only go so far; the product quality must be high,” he stated. By employing an iterative development lens to assess food products, Simulate has made significant advancements. Terris described last year’s product as “not good,” highlighting issues such as poor ingredient choices and undesirable textures. The feedback collected throughout the iterative process has been invaluable, with a focus on achieving the desired firmness and juiciness.
SPINS’ Crumpton identified two key barriers to the broader adoption of plant-based chicken: consumer dissatisfaction with taste and a lack of nutritional improvement in analogs. While many companies are working diligently to enhance flavor authenticity, there are still challenges to overcome regarding nutritional profiles.
Ignaszewski from GFI believes that technological advancements will further elevate plant-based chicken to command greater shelf space and consumer spending in the meat department. Given that plant-based meat is composed of various ingredients, there is significant potential for health and functional versatility compared to conventional meat.
Robbins predicts ongoing development and growth in the plant-based chicken sector. While the current market size is small, exponential growth is anticipated. As this segment expands, product innovation will continue. He remarked that the plant-based milk category has reached a level of maturity, yet new products and improvements are still being introduced, including those with higher protein content or unique blends. “As long as there is room in the marketplace, you will see new products emerge and existing offerings refined,” Robbins concluded.
Several plant-based chicken manufacturers express a shared goal: to reduce the presence of animal-based chicken in stores and restaurants. Rather than focusing on competitors, they are dedicated to creating the best products for consumers. Simulate’s Terris envisions a future where traditional animal-based meats are rendered obsolete, with only plant-based alternatives remaining. “We might still refer to it as ‘meat’ out of habit, but I hope that in five years, we see fewer animal-based products globally,” he said.
As the plant-based chicken market evolves, products like Swanson Calcium Citrate—a nutrient supplement—could also find their place, enhancing the health profile of plant-based diets while contributing to the growth of this exciting category.
