The store confirmed the move after customers noticed a lack of meat-free products instore.
Some contacted Iceland to see what was happening, with one tweet asking: "Hey @IcelandFoods – what's this I hear about you guys removing most of the #vegan foods for Christmas? That's a bit rubbish, isn't it?"
Vegan food options
"We are making amendments to the stock we hold in stores over the Christmas period, and you may see a reduction in the availability of vegan options we're afraid," Iceland replied.
"We are sorry for the disappointment this may have caused."
Iceland has not stated specifically how much it will reduce its vegan range, or for how long, but has announced it will be offering a 'No Turkey' Christmas Dinner.
Iceland's banned advert
The news about the vegan stock reduction was met with complaints from some people on social media.
"Bit disappointed to see the Iceland 'vegan' freezer reduced to a shared veggie/vegan one," one person Tweeted.
"Come on Iceland I know you need to make profit but really..." another added.
Some vegans have accused the store of hypocrisy, as it recently pledged to remove palm-oil from all its branded products to help the environment - though some researchers have argued that sustainable palm oil is a better alternative to other oil products.
The store created an advert with Greenpeace, showing the devastation palm plantations wreak on orangutan habitats.
While the piece was banned by the advertising watchdog for contravening guidelines for being 'too political', it went viral online as many people shared it.
"Woo woo, look at us and our strong stance on palm oil and orangutans....oh but all you pigs, cows, chickens, turkeys etc can all f**k off because we need to make more profit," said one commentator.
"F*ck Iceland we as vegans boosted their banned advert and they repay us by reducing their vegan range," another added.