Retail Vending Machine Market To Hit Value 9.40 Billion By 2030 |Grand View Research, Inc.

Posted by Mrudula Anil Karmarkar on January 25th, 2024

San Francisco, 25 January 2024: The ReportRetail Vending Machine Market Size, Share & Trends Analysis Report By Type (Beverage, Food Vending Machines), By Payment Mode (Cash, Cashless), By Application (Offices, Public Places), And Segment Forecasts, 2022 - 2030

The global retail vending machine market size is expected to reach USD 129.40 billion by 2030, registering a CAGR of 10.7% over the forecast period, according to a new report by Grand View Research, Inc. The industry growth can also be attributed to the ability of these machines to deliver goods quickly, making it an extremely convenient option for consumers. Vending machine sales appear to be a potential means of food and beverage distribution, as these machines can sell various consumables, such as cigarettes and lottery tickets, in addition to snacks and beverages. As a result, vending machine operators can create high revenue by strategically installing them in corporate buildings, schools, malls, train stations, and airports, among other locations.

In recent years, IoT technology has provided vending machine operators with the opportunity to improve their businesses by tracking products and assessing what is popular in machines. By tracking stocks through connected devices, vending machine operators can be instantly alerted about low stock levels in their vending machines, which may ultimately reduce expenses and improve customer service. According to Sigfox, the noticeable use of IoT in the vending industry is in plug-and-play smart button devices that attach to machines, enabling individuals to contact facility management instantly. By payment mode, cashless payment technology is expected to witness tremendous growth as it goes hand in hand with payment security.

Although data breaches & scams have impeded the convenience of using a debit/credit card, vending machine operators are working with certain financial institutions to implement the strictest security measures to protect both customers and operators. Operators are adopting various strategies to maximize profit by being at the right location with the right products, sourcing products in bulk, investing in intelligent vending machines to gain consumer insights, and other ways. For instance, hot food and sandwich vending machines may do well in business environments, universities, and schools, while, in most public locations, hot drinks like coffee, tea, and hot chocolate have high demand. Industry players face intense competition from each other, as some of them operate at several locations and have large customer bases. The presence of many small-scale players is also leading to increased competition.

Increasing demand for on-the-go snacks and beverages due to the hectic lifestyles of consumers is boosting product sales through vending machines. The industry growth can also be attributed to the ability of these machines to deliver goods quickly, making it an extremely convenient option for consumers. From offices to high-end restaurants and crowded bars to public places, accessing food & beverage items is made simple with a vending machine. This, in turn, is likely to drive their demand.

Request sample report of Retail Vending Machine Market@https://www.grandviewresearch.com/industry-analysis/global-vending-machine-market/request/rs1

The coronavirus pandemic has unfavorably influenced the consumer goods industry with lockdowns having an impact across the supply chain. The impact on food and beverage companies will likely be complex, influencing both the demand and supply. In contrast, a change in consumer behavior has been observed, generating demand for various consumer goods, wherein several consumers have switched between brands. Simultaneously, manufacturers are deciding on how to handle potential disruption across the supply chain and are identifying areas to improve and meet consumer demand. Vending machine operators have witnessed the impact and a fall in revenue, especially in April 2020 as compared to 2022.

Retail Vending Machine Market Report Highlights

• North America accounted for the highest market share in 2021. This region is projected to register a significant CAGR over the forecast period
• The rapid rise of self-service technology in this region has created new business avenues for vending machines. Thus, several operators are focusing on launching their businesses in strategic locations across the region
• The cashless payment segment is estimated to register the fastest CAGR from 2022 to 2030 as this payment method offers convenience and logistical solutions
• Moreover, handling cash in vending machines is a costly process for operators, in terms of time spent collecting and counting money and losses incurred through vandalism and theft
• The office segment is likely to remain at the forefront throughout the forecast period. Vending machines are installed in workplaces to offer employees a convenient, affordable, and quick option for buying food

Sales through vending machines look promising as vending machines not just offer snacks and beverages but can also sell other consumables, such as cigarettes and lottery tickets. Hence, operators can generate significant revenue through these devices by strategically placing them in corporate buildings, schools, malls, train stations, and airports, among others. For instance, in August 2022, it was announced that over 1 million plastic bottles had been recycled through reverse vending machines in Iceland stores. The healthy lifestyle trend is becoming increasingly prominent across the globe on account of growing consumer awareness regarding healthy food and beverage options.

According to 2022 research by The Vending People, the sales of zero-sugar beverages surged by 38.2% from the first half of 2018 to the first half of 2022, in the U.K., while sales of high-sugar content beverages have seen the biggest drop. Sales of these drinks were down by 19.8% when compared to the same timespan the previous year. Low-calorie drinks outsold other beverages by 196%, showing that customers are looking for healthier alternatives.

The beverage retail vending machine segment dominated the industry in 2021 and accounted for the maximum share of more than 43.00% of the global revenue. The high demand for coffee and energy drinks across various sectors is driving the growth of this segment. Beverage vending machines not only consist of coffee, tea, or cocoa, but also have diet soda, energy drinks, lemonade, flavored drinks, vitamin water, and water bottles. Beverage vending machines are immensely popular in hotels for guests who prefer a beverage or a small snack instead of a full meal. Vending machines are often placed in the lobby of a hotel to generate continuous revenue.

The beauty & personal care retail vending machine segment is projected to grow at the fastest CAGR during the forecast period. Shaving creams, deodorants, and makeup removers are among the products available in beauty & personal care vending machines. These vending machines are commonly installed in shopping malls, spas, barber shops, and airports in major cities. They are also an alternative for customers who normally shop online for luxury beauty and skincare products. Increasing footfall in spas, airports, and shopping malls is expected to fuel the demand for beauty and personal care retail vending machines.

Retail Vending Machine Market Report Scope

Operators are adopting various strategies to maximize profit by being at the right location with the right products, sourcing products in bulk, investing in intelligent vending machines to gain consumer insights, and other ways. For instance, hot food and sandwich vending machines may do well in business environments, universities, and schools, while, in most public locations, hot drinks like coffee, tea, and hot chocolate have high demand. Industry players face intense competition from each other, as some of them operate at several locations and have large customer bases. The presence of many small-scale players is also leading to increased competition.

• In 2021, Coca-Cola Beverages Florida (Coke Florida) and Coca-Cola Co. teamed up to launch a new Reverse Vending Machine (RVM) at the University of Miami. The materials are crushed and sorted by type, then collected, treated, and prepared for re-use. The process ultimately reduces carbon emissions across the supply chain and supports Coca-Cola’s World Without Waste initiative to recycle a bottle or can sold by 2030
• In 2022, under the CSR initiative to curb carbon footprint, the Small Industries Development Bank of India (SIDBI) and the Dalit Indian Chamber of Commerce and Industries (DICCI) jointly announced the installation of 1,000 Plastic Reverse Vending Machines (RVMSs). The launch was announced under the ‘Swachh Delhi, Swavalambi Delhi’ initiative. The RVMs will be installed at as many public places like malls, metro stations, and parks as possible
• In 2021, the MENstruation Foundation, a nonprofit organization that fights “period poverty”, introduced a sanitary pad vending machine, the first in Africa. The pads are locally manufactured and compostable. The foundation says that it aims to reach at least 100 schools by 2022 and hopes to double that in the years to come. Support from the corporate sector-such as MTN, which has sponsored two machines-was crucial

List of Key Players in the Retail Vending Machine Market

• Azkoyen Group
• Cantaloupe Systems
• Westomatic Vending Services Limited
• Royal Vendors, Inc.
• Glory Ltd.
• Sanden Holding Corp.
• Seaga Manufacturing Inc.
• Orasesta S.p.A
• Sellmat s.r.l.
• Fuji Electric Co., Ltd.