Vending Machine Market: Overview
The market size for vending machine was USD 18.2 billion in 2021, and it is projected to grow at a CAGR of 5.1 percent during the forecast period. Due to customers' busy lifestyles, there is an increasing need for on-the-go snacks and beverages, which is driving product sales through vending machines. The industry's expansion can also be attributed to these machines' quick delivery of goods, which gives customers a very practical choice. A vending machine makes it easier to access food and beverages in a variety of locations, including businesses, upscale restaurants, crowded pubs, and public spaces. This will probably increase demand for them in turn.
Vending machines powered by the internet of things (IoT) are being developed and released by manufacturers. To better monitor the equipment, this has made it possible to collect data in real-time and to provide an end-to-end IoT solution. It is now easier to gather customer experience and expectations in order to improve the buying experience for customers. In response to changes in consumer behaviour, the sector now provides more contemporary, mobile solutions as a result of ongoing technology advancements. The development of the vending machine industry has been positively impacted by innovations like speech recognition, interactive display systems, and big data integration that have made it more convenient and user-friendly for consumers. Given that they can sell more than simply snacks and drinks, such as cigarettes and lottery tickets, vending machine sales appear to be promising. As a result, by strategically deploying these devices in places like corporate buildings, schools, malls, railway stations, and airports, among others, operators can collect enormous money. For instance, it was reported in August 2019 that over 1 million plastic bottles have been recycled by Iceland retailers' reverse vending machines. Due to rising consumer awareness of nutritious food and beverage options, the healthy living trend is gaining ground all over the world.
The Vending People's 2019 research shows that sales of zero-sugar beverages increased by 38.2% in the U.K. from the first half of 2018 to the first half of 2019, whereas sales of beverages with a high sugar content saw the sharpest decline. When compared to the same period last year, sales of these drinks decreased by 19.8%. Customers are looking for healthier substitutes, as seen by the 196% sales increase of low-calorie beverages over other beverages.
Vending Machine Market: COVID-19 Impact
The Covid-19 pandemic has had a negative effect on the consumer goods sector, as national and regional lockdowns have disrupted supply chains and production. Both the demand and supply equations will be impacted, which will have a complicated impact on food and beverage companies. Additionally, unlike in other industries, a change in customer behavior has increased demand for a number of product categories and changed brand preferences. Manufacturers are also deciding how to best deal with potential supply chain disruptions and capacity issues that can prohibit them from meeting changing client demands. The Covid-19 dilemma had an influence on the landscape in particular because demand fell in February and March relative to those months in 2019 during those months.
Vending Machine Market: Drivers
Growing Demand for Cashless Vending Machines to Drive Market Growth
The market is influenced by a number of variables, including the rising use of cashless vending machines. Cashless payments are on the rise due to a number of causes, including the growing popularity of smartphones and the use of Internet-enabled devices, debit cards, and credit cards for payment. Vending machines that accept credit cards, debit cards, and mobile payments are being installed by businesses. They are able to attract clients' attention in this way, which boosts sales.
Technological Advancement and Lifestyle Changes Driving Market Growth
The primary driver fueling the growth of the vending machine industry is the innovative machines and ease of use. The market for vending machines is also anticipated to develop as a result of the rising demand for ready-to-eat snacks and drinks that can be consumed on-the-go as a result of erratic schedules and lifestyles. However, strict laws prohibiting the sale of unhealthy, junk food, and tobacco items in public places and most commercial spaces limit the market for vending machines and set product prices will pose a growth barrier. The vending machine market will have plenty of prospects because of innovation and technical advancements including simple payment methods and creative ways to keep the goods fresh.
Vending Machine Market: Restraints
Theft and Vandalism to Hamper Market Growth
During the projection period, the growth in theft and vandalism will provide a significant threat to the intelligent vending machine industry. The global sector is being impacted by an increase in vending machine vandalism. This is especially noticeable in the APAC developing nations. Intelligent vending machines are built for self-operation and do not require trained staff to operate them. Because of their lightweight bodies, these devices are relatively simple for thieves to vandalize. The adoption of intelligent vending machines is being constrained by this.
Vending Machine Market: Segment Overview
Beverage Vending Machine to Dominate Market due to High Demand of Beverages
In 2021, the beverage retail vending machine segment dominated the market and accounted for the highest revenue share of more than 43.00%. This market's expansion is being fueled by the growing demand for coffee and energy drinks across numerous industries. In addition to coffee, tea, or chocolate, beverage vending machines also include diet soda, energy drinks, lemonade, flavored beverages, vitamin water, and water bottles. For guests who prefer a drink or a small snack over a full meal, beverage vending machines are very common at hotels. In order to create an ongoing income, hotels frequently place vending machines in the lobby.
Cash Payment Category Dominated Market Due to its Presence from Long Time
In 2021, the cash payment mode segment ruled the global market and was responsible for the highest revenue share of more than 74.00%. The market leader position will be maintained during the forecast period as the segment is expected to continue to grow at a considerable CAGR. At retail vending machines, both cash and credit cards are accepted. Due to the fact that vending machines frequently provide a slot for cash and another for credit or debit cards, customers may choose to use either method based on the resources they have available. The buyer finally decides which payment option to use. Over the anticipated time, it is predicted that the cashless payment mode category will have a faster CAGR. Cashless transactions are more than just a commodity because they have several benefits for both customers and businesses. Cashless payment methods are anticipated to grow in popularity due to benefits like lower cash handling losses, reduced labor costs, and increased transaction speed and efficiency. Additionally, consumers like contactless or cashless payment methods because they believe they are more hygienic. For instance, 82% of respondents worldwide stated that they favored contactless and cashless payments as a more environmentally friendly method of payment in a survey conducted by MasterCard in April 2020.
Vending Machine Market: Regional Landscape
North America to Dominate Market due to Easily Accessible Properties of Vending Machines
Throughout the projected period of 2022–2027, North America is expected to continue to be the largest market shareholder. The market is expanding favorably as a result of the growing practise of installing vending machines on interstates for the convenience of motorists. For instance, the state of North Carolina has announced that 76.7% of its vending machines will be placed on its interstate highway in 2018, in accordance with data released by the Centers for Disease Control and Prevention in October 2019. In addition, the prevalence of food and drink vending machines in arenas for sports like baseball, American football, basketball, and others is boosting the use of the product.
On the other hand, Asia Pacific is predicted to experience the quickest growth during the projection period. The growth of the region can be primarily attributed to the high product penetration in important nations like Singapore and Japan because of the growing populations in those countries. India and China, two developing nations in the Asia Pacific, offer the industry significant room for expansion. During the forecast years, Europe is anticipated to grow significantly as well, with the second-fastest CAGR. In contrast to other regions, the MEA region is predicted to grow a little more slowly.
Global Vending Machine Market: Competitive Landscape
Coke Florida and Coca-Cola Co. joined together in 2021 to introduce a brand-new Reverse Vending Machine (RVM) at the University of Miami. The materials are then collected, processed, and made ready for reuse after being crushed and sorted by type. In the end, the procedure lowers carbon emissions throughout the supply chain and helps Coca-World Cola's Without Waste campaign, which aims to have every bottle or can recycled by 2030. Moreover, The MENstruation Foundation, a nonprofit that works to eradicate "period poverty," unveiled the first sanitary pad vending machine in Africa in 2021. The pads are made nearby and are compostable. By 2022, the foundation says it expects to reach at least 100 schools, and in subsequent years, it hopes to treble that number. Support from the business community, including MTN, which has funded two computers, was essential. Additionally, The Dalit Indian Chamber of Commerce and Industries (DICCI) and the Small Industries Development Bank of India (SIDBI) together announced the installation of 1,000 plastic reverse vending machines in 2022 as part of a CSR project to reduce carbon footprint (RVMSs). Under the "Swachh Delhi, Swavalambi Delhi" programme, the launch was announced. As many public locations as possible, including malls, metro stations, and parks, will have RVMs installed.
Few of the players in the Vending Machine Market include Azkoyen Group, Bianchi Industry S.p.A., Cantaloupe Inc., Crane Co., Fuji Electric Co. Ltd., Glory Ltd., Jofemar Corporation, Orasesta Spa, Royal Vendors Inc., Sanden Holdings Corporation, Seaga Manufacturing Inc., Selecta AG and Westomatic Vending Services Ltd.
Global Vending Machine Market is Segmented as Below:
By Payment Mode
Key Elements Included In The Study: Global Vending Machine Market
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