This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself.
Retail Vending Machine Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
GET A FREE SAMPLE
Report Overview
The global retail vending machine products market was valued at USD 25.4 billion in 2022 and is projected to grow at a CAGR of 4.2% from 2023 to 2030. The retail vending machine market is driven by the convenience of the machines, which enable customers to purchase products without the need for manual intervention. The increasing number of self-service and unmanned stores is one of the major factors driving the growth of the retail vending machine market. Additionally, the rising demand for food and beverage products, and the increasing number of vending machines in airports and other public places, are some of the other factors driving the growth of the retail vending machine market.
The retail vending machine market is segmented into type, product, and region. By type, the retail vending machine market is segmented into food and non-food. The food segment is further subdivided into snacks & confectionery, beverages, frozen food, and others. The non-food segment is further divided into apparel, electronics, and others. By product, the retail vending machine market is segmented into food & beverage, and non-food products.
The increasing number of vending machines in public places such as airports, supermarkets, and shopping centers has led to a growing demand for retail vending machine products. For instance, in 2021, Nestle launched its new vending machine ‘Nescafe Kit Kat Vending Machine’ in the UK. The new machine allows customers to purchase a Kit Kat along with a cup of Nescafe coffee. Furthermore, technological advances such as cashless systems, automated purchasing, and remote monitoring features are expected to fuel the demand for retail vending machine products.
Moreover, the introduction of smart vending machines is another factor driving the growth of the market. Smart vending machines are equipped with advanced technologies such as the Internet of Things (IoT) and facial recognition, which enable customers to purchase products with ease. Additionally, the introduction of mobile-enabled vending machines, which allow customers to purchase products using their smartphones, is expected to drive the growth of the market.
Apart from that, the rising demand for healthy snacks, such as fruits, nuts, and yogurt, is expected to fuel the growth of the retail vending machine market. Furthermore, the increasing number of health-conscious consumers is expected to drive the demand for healthy products in the retail vending machine market. To cater to the increasing demand for healthy products, some market players are launching organic products in their vending machines. For instance, in 2021, PepsiCo launched organic snacks in its vending machines at various locations in the United States.
Product Insights
The beverages segment accounted for the largest market share of around 35.7% in 2022. Increasing convenience and the ability to offer a wide variety of beverages is driving the demand for vending machines. Furthermore, vending machines require minimal maintenance and offer a wide variety of products including beverages, food, and other items, which is further driving their demand. Moreover, the implementation of cashless payment solutions has made it easier for consumers to purchase from vending machines, thereby augmenting the market growth.
The food segment is projected to witness the fastest CAGR of 8.2% during the forecast period. Increasing demand for quick, easy, and convenient snacks is driving the demand for vending machines. In addition, rising awareness about the health benefits of food products driven by natural ingredients is driving the demand for healthier snacks from vending machines. Moreover, the presence of pre-packaged food in vending machines has made it easier for consumers to grab a quick bite.
Distribution Channel Insights
The retail vending machines segment is expected to grow at a CAGR of 8.2% during the forecast period. Retail vending machines are used for the storage and distribution of products such as snacks, beverages, cigarettes, and other food items. The growing demand for convenience and easy access to products, especially in regions with limited store presence, has led to an increase in the number of vending machines. In addition, these machines are also employed in the retail sector for the sale of products such as apparel, electronics, and gift products, among others.
Moreover, the increasing focus of retail companies on convenience and self-service is expected to drive the growth of the segment over the forecast period. For instance, in May 2020, Amazon launched a robotic retail vending machine, Amazon Hub Counter, to provide customers with quick and easy access to customer orders. The machine is available in the U.S. and allows customers to pick up their orders, including Amazon Lockers, within two hours of ordering. The machine also allows customers to return products.
Type Insights
The full-line vending segment accounted for the largest revenue share of 48.4% in the year 2022. The increased demand for automated retail solutions, driven by the need for convenience, is driving the market. Additionally, the increasing trend of automation in the retail sector is another factor driving the segment. For instance, in April 2022, CVS Health, a U.S. based chain of convenience stores, launched a new automated retailing solution to provide customers with an easier, faster, and safer way to shop for products. This is expected to boost the full-line vending segment.
The food and beverage segment is anticipated to expand at the highest CAGR of 10.9% over the forecast period. The increasing demand for food items available on vending machines, such as sandwiches, salads, and other snacks, is driving the segment. Additionally, the rising trend of healthy and convenience foods is propelling the market, as they offer customers a wide range of healthy eating options. For instance, in April 2022, Aramark launched a self-serve vending machine, offering healthy snacks and meals in the U.S.
Regional Insights
Europe is expected to be the largest regional market during the forecast period. The presence of several large retail outlets and convenience stores in the region is expected to drive the growth of the market. In addition, the rising demand for on-the-go snacks, beverages, and other products is expected to drive the growth of the retail vending machine market in the region. Moreover, the presence of several companies in the region offering retail vending machine solutions is expected to further fuel market growth. For instance, in April 2022, Top Vending launched its new range of retail vending machines in the U.K.
Asia Pacific is expected to witness significant growth during the forecast period. The growth in this region is attributed to the rising demand for ready-to-eat snacks and beverages, especially in developing countries such as India and China. The increasing disposable incomes of consumers in the region, along with the growing trend of on-the-go consumption, is expected to fuel the growth of the market in the region. Additionally, the presence of several local players offering retail vending solutions is expected to further fuel the growth of the market in the region.
Financial Projections
In this part of the retail vending machine products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your retail vending machine products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a retail vending machine products business comes from sales of vending machine products, commissions on sales, and advertising fees. Here you will find a list with a description of each of them and other possible sources of profit such as installation and service fees, and leasing the vending machines to businesses.
Projecting Expenses
In this section, all the regular expenses related to keeping the vending machine products business running will be described. The list of operating expenses includes wages, inventory, maintenance and repairs, utilities, insurance policies, advertising, and others.
Key companies & market share insights
Some of the key companies operating in the retail vending machine market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In June 2022, Crane Co. launched a new line of touchscreen vending machines designed to provide a better customer experience.
– In August 2022, Azkoyen Group launched the new Azkoyen Profit vending machine, designed for use in convenience stores.
– In October 2022, Seaga Group launched the Infinity series of vending machines, designed for use in retail stores.
Some of the prominent players in the retail vending machine market include:
– Crane Co.
– Azkoyen Group
– Seaga Group
– Automated Merchandising Systems, Inc.
– FAS International
– SandenVendo America, Inc.
– Fuji Electric FA Components & Systems Co., Ltd.
– Westomatic Vending Services Limited
– N&W Global Vending S.p.A
– Fuhong Machinery Co. Ltd.
Global Retail Vending Machine Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global retail vending machine products market based on type, operation, end use, and region:
1. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Beverages
– Food
– Others
2. Operation Outlook (Revenue, USD Million, 2017 – 2030)
– Remotely Operated
– Cashless
– Coin Operated
3. End Use Outlook (Revenue, USD Million, 2017 – 2030)
– Commercial
– Industrial
– Residential
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What is the expected growth rate for the Retail Vending Machine Products Market?
[A]: The global retail vending machine products market is projected to grow at a CAGR of 7.2% from 2020 to 2027.
[Q]: What are the factors driving the Retail Vending Machine Products Market?
[A]: The growing demand for convenience, rapid urbanization, and technological advancements are some of the factors driving the retail vending machine products market. Additionally, the rising demand for cashless transactions, increasing disposable income, and the growth of new retail models are some of the other driving factors.
[Q]: What are the challenges faced by the Retail Vending Machine Products Market?
[A]: Some of the challenges faced by the retail vending machine products market include low customer satisfaction, limited product variety, and the high cost of installation and maintenance.
[Q]: Who are the Key Players in the Retail Vending Machine Products Market?
[A]: Some of the key players in the retail vending machine products market include Crane Co., Sanden International, Fujitsu, Westomatic Vending Services, Azkoyen Group, and National Automated Merchandising Association (NAMA).
[Q]: Which region offers the largest opportunity for sales of Retail Vending Machine Products?
[A]: North America is expected to be the largest market for retail vending machine products and is expected to be the largest regional contributor in terms of revenue during the forecast period. This is due to the increasing demand for convenience, rapid urbanization, and technological advancements in the region.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
To request a free sample copy of this report, please complete the form below.
We value your investment and offer free customization with every report to fulfil your exact research needs.
