Growing consumption of convenient and dispense goods including food, drinks, cigarettes, and other items is pushing the demand for vending machines according to a study by Fact.MR, a market research and consulting agency.
The study revealed that in addition to workplaces and institutional buildings, residents’ homes, restaurants and nightclubs are turning to vending machines in their droves.
In fact, it is believed that the global vending machines market is anticipated to increase at a rate of 5.7% between 2021 and 2031 and alreadysurpassed a value of US$12.57 billion in 2021.
Spending on opulent extras, especially in countries such as the US and the UK, is boosting sales of vending machines as hotels and restaurants like to keep their revenues up with the opportunity to dispense extra goods and food products.
Further, with growing presence of motels on highways and pitstops in countries such as India, the US, Japan, and the UK, sales of vending machines have rocketed at a rapid pace. According to the study, Japan is anticipated to lead the East Asia market with the region accounting for around three tenths of demand.
Another factor boosting the market is growing popularity of vending machines in businesses and schools where key players are now collaborating with retail-centric arenas such as schools, universities, corporates and hotels in order to capitalise on the trend, fuelling the growth in the market.
- Shopping malls and retail stores are expected to witness the fastest growth at 5% over the forecast period
- The vending machines market is anticipated to expand at a positive 6% rate during the projected period.
- East Asia is expected to hold more than 30% of demand share in vending machines market.
- Nearly 23% of the market is controlled by the top five companies, including Crane Merchandising Systems, The Vendo Group, Selecta TMP AG, Fuji Electric, and Azkoyen Group.
- Based on vending type, the food products vending segment is expected to witness highest growth through 2022 & beyond.
- The advent of intelligent vending machines integrated with artificial intelligence will facilitate the growth in the market
- Growing consumption of convenient food products, especially in coporates, with boost the sales in in corporate offices
- Expansion of the retail sector in countries such as India, China, and Japan will aid the growth in the East and South Asia vending machines market
- The rise in theft and vandalism will be a major challenge for the vending machine market players.
- The setup cost of vending machines are high and will significant investment. This is likely to limit the sales in low-and middle-income countries.
With growing demand for vending machines, key companies are producing the products in bulk to capitalise on the ongoing trend. These players are also collaborating with corporate offices, universities, and hotels to expand their customer base and gain revenue.
Meanwhile, some of the companies are integrating advanced technologies such as smart vending machines to up their game and expand their product portfolio.
For instance, in December 2021, ContextLogic, leading mobile ecommerce platform, collaborated with Nasdaq on the installation of a co-branded vending machine shopping experience at 4 Times Square in the U.S.
Then, in March 2022, One Step Vending Corp, specialising in emerging industries acquisitions with an emphasis in the self-serve vending market, announced its joint venture with Foundation Farms 2021, Corp.