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Vending Machine Market

Vending Machine Market: Information by Type (Food Vending Machine, Beverages Vending Machine), Application (Corporate Offices), Technology (Automatic Machine), and Region — Forecast till 2030

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Market Overview

The global vending machine market had a share of USD 17,128 million, which is envisioned to reach USD 28,776 million with a CAGR of 6.7% during the forecast period.

A vending machine is used to dispense commodities, like processed food, refreshments, and tobacco products, in exchange for cash or tokens. Dispensing is an automated operation that involves no human labor and saves humans valuable time. Due to the rapid speed of life, these machines are commonly observed in cities.

In addition to dispensing commodities, vending machines engage customers with touch-screen controls, video, music, fragrance, gesture-based engagement, and cashless payment. In addition, these goods have many applications in hotels and restaurants, corporate offices, and other public spaces. Advancement and innovation in vending machines are the driving force behind the global vending machine market's expansion. Increased demand for vending machines from target consumers enables manufacturers to introduce innovations in vending machines, which is expected to stimulate the growth of the global vending machine market.

The tremendous rise of the packaged refreshments market is one of the most important reasons driving the expansion of the market for vending machines. Consumers' rising desire for ready-to-drink and packaged beverages is the primary reason driving the expansion of the global market. In hotels and restaurants, vending machines have been installed to attract consumers and provide additional service to guests by effectively selling products. These vending machine installations in restaurants, hotels, and airports, among others, are anticipated to contribute to expanding the global vending machine market. Consumers are attracted to vending machines because of the instant service and range of products they provide, which drives the global market expansion. In addition, vending machines offer contactless payment options, such as smartphone payment systems, which contribute to market expansion. The high initial installation costs restrain the global market for vending machines.

Market Snapshot

market snapshot
Base Year
: 2021
Study Period
: 2020-2030
CAGR
: 6.7 %
Fastest Growing Market
: Europe
Largest Market
: North America
Market Size
: USD 28,776 million
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Market Dynamics

Market Driving Factors

The Rise in Demand for Food Products Due to Busy Lifestyle and Adoption of Vending Machines to Enhance Shopping Experience

Due to their portability and speedy delivery, vending machines are a highly convenient choice for consumers seeking to purchase food and beverages. In recent years, the need for readily available food has increased due to consumers' busy lifestyles, urbanization, and similar consumer behaviors. Due to this, the demand for vending machines, particularly in offices, commercial spaces, and public areas, has accelerated dramatically. Non-food products like toiletries, stamps, newspapers, tickets and other small items can be purchased from vending machines. In addition, as vending machines allow more digital payment/cashless choices relative to traditional cash payments, the demand for vending machines has increased.

Manufacturers are developing and releasing vending machines based on the Internet of Things (IoT). This has enabled the collection of real-time data and an end-to-end IoT solution for improved machine monitoring. As a result, it has become easier to collect consumer experience and expectations and give a better buying experience for consumers. Constant innovation and technological advancements have prompted the sector to provide more current, on-the-go solutions to consumer behavior changes. Moreover, advancements such as speech recognition, an interactive display system, and the incorporation of big data have made vending machines more convenient and user-friendly for consumers, which has had a favorable effect on vending machine demand.

Market Restraining Factors

Prohibited Sale of Tobacco Products to Restrict Market Growth

In numerous nations, including India, Thailand, and others, vending machine sales of tobacco goods are outlawed. Strict rules regulating selling unhealthy, junk food and tobacco goods in public areas, institutions, and the vast majority of business spaces are anticipated to restrain the market growth of vending machines. Smoking is prohibited entirely in many public locations and workplaces, including educational, hospitals, government facilities, and public transportation. However, the law permits smoking places or spaces in airports, hotels with 30 or more rooms, and restaurants with 30 or more seats. Smoking is prohibited in outdoor areas such as stadiums, train stations, open auditoriums, and bus stops/stands. These factors inhibit global vending machine market expansion.

Key Market Opportunities

More Demand for Vending Machines in the Retail Industry to Boost Market Opportunities

Modern consumers anticipate a convenient and individualized buying experience; therefore, companies must offer more innovative solutions that extend shopping outside the typical store site. Wireless solutions facilitate retailers' ability to perform transactions anywhere. Hence, they are motivated to use the Internet of Things (IoT) to enhance customer happiness while simultaneously growing revenues and decreasing total expenses. IoT enables vending machine operators to respond to consumer demand and increase operational efficiency more effectively. It has also made vending machine management straightforward and efficient.

IoT-based vending machines, for instance, use real-time data to connect and interact with the customers and modify pricing for profit maximization, increase the security of machines to decrease tampering and product loss, and track temperatures and monitor other conditions to ensure the safety of perishable food items. These practical benefits provided by vending machines give prospects for expansion in the retail business.

Segmental Analysis

The global vending machine market is classified based on type, application, technology, sales channel, and region.

On the Basis of Type

Based on type, the market segmentation includes food vending machines, beverages vending machines, tobacco vending machines, etc.

The beverage vending machine type is expected to hold the largest share of USD 16,978 million, with a CAGR of 6.7% during the forecast period. A beverage vending machine is an electronic device that dispenses various beverages, including soft drinks, coffee, water, and others. Globally, beverage vending machines are utilized in various settings, including hotels & restaurants, corporate offices, and supermarkets. In addition, the demand for the commodity is increasing in industrialized nations. The tremendous expansion of the beverage industry is the primary element driving the market for beverage vending machines. The popularity and acceptability of these devices will spur innovation in the sector and expand the global vending machine market over the forecast period.

Other vending machines are expected to grow at a higher CAGR of 7.8% and reach USD 5,145 million by 2030. Other vending machines sell consumer goods, including contraceptives, toys, and hygiene. Globally, these goods are often utilized daily. Rising usage of computerized vending machines in developed regions and advancements in vending machine technology is driving the expansion of the other sector. Advanced vending machines include the latest innovative features, such as transaction management, consumer demand research, inventory management, order processing, and digital advertising, allowing users to traverse the machines easily. These variables are projected to stimulate the expansion of the global market.

On the Basis of Application

The market segmentation includes hotels & restaurants, corporate offices, public places, and others based on application.

Hotels & restaurants are expected to hold a massive share of USD 10,336 million with a CAGR of 6.1% during the forecast period. Hotels and restaurants assist manufacturers in introducing various kinds of vending machines to the market and catering to many consumers. The expansion of the vending machine market is anticipated to be fueled by the rising popularity of upscale dining and tourism. In addition, consumers with a high discretionary income spend more on upscale amenities, which increases demand for restaurants and hotels.

The corporate office segment is likely to hold a share of USD 5,841 million, growing with the fastest CAGR of 7.8% by 2030. Vending machines are located in corporate offices, such as IT hubs, special economic zones (SEZ), and commercial complexes. Offices utilize vending machines to save space and money and to maintain cleanliness. The market expansion can also be linked to the machine's speedy delivery capabilities, making it a very convenient option for corporate office consumers. Incorporating intelligent technology into the vending machine is anticipated to aid offices in tracking individual product orders and staff consumption. In addition, increasing demand from business users is propelling the global vending machine market.

On the Basis of Technology

The segmentation includes automatic, semi-automatic, and smart machines based on technology.

Automatic machines are anticipated to told a larger share of USD 16,712 million with a CAGR of 6.6% during the forecast period. Increasing investments in automatic machine areas, such as airports, hospitals, hotels, and restaurants, will significantly increase the demand for automatic vending machines. The market is mainly led by the ease of sales and purchase, the variety of brands available, and the price. In addition, vending machines are regarded as the most profitable sales channel in airports, train stations, and bus stations due to the rise in impulse purchases.

Intelligent machines will likely hold a market share of USD 7,215 million with a CAGR of 7.8% by 2030. The manufacturers of intelligent vending machines are creating energy-efficient solutions to lower the machines' carbon footprint. In addition, growing government provisions, mobile payment alternatives, reduced operating costs, increasing customer interactivity, the adaptation of computing technology, payment flexibility, remote management, improved energy efficiency, software flexibility, and adoption of IoT are driving the growth of the market for smart vending machines.

On the Basis of Sales Channel

Based on the sales channel, the global market has been classified as offline and online.

The offline segment will hold a share of USD 20,705 million with a CAGR of 6.5% during the forecast period. The offline segment comprises department stores, convenience stores, and specialty retailers. Convenience stores give consumers the needed convenience and variety of selections. Market participants open new convenience stores in various places to boost their client base and expand their reach. Different varieties of vending machine items with enticing characteristics are introduced by specialty retailers, consequently driving global vending machine market expansion. In addition, the specialty retail business is predicted to have unsteady expansion due to macroeconomic reasons such as rising consumer expenditure and disposable income.

The online segment will likely project a faster CAGR of 8% and reach USD 10,757 million by 2030. Increased penetration of various internet portals in emerging regions and an increase in the number of promotions or discounts encourage consumers to purchase vending machines via online channels. In addition, the online sales channel has expanded customer reach, making it a vital source of revenue for many businesses. In addition, the online segment is anticipated to rise shortly due to the rapid expansion of online and mobile user bases in emerging regions. Increased e-commerce sales, enhanced logistical services, simplified payment choices, and the ability for influential brands to penetrate new international markets all contribute to the expansion of the global market.

Regional Analysis

The regional segmentation of the global vending machine market includes North America, Europe, Asia-Pacific, and LAMEA.

Is North America Likely to Dominate the Global Vending Machine Market?

North America is expected to grow at a CAGR of 6.1% and reach USD 10,716 million during the forecast period. North America is a competitive marketplace with intense vending machine product penetration. Over the years, the demand for vending machine items has increased dramatically due to essential industry participants and somewhat swifter adoption. The dominance of the vending machine business in North America can be attributed to the United States, a particularly lucrative country in the region. The National Automatic Merchandising Association estimates that vending machines contributed approximately USD 25 billion to the U.S. convenience service industry. Changing lifestyles and high demand for ready-to-eat meals also expand the regional market.

Europe is expected to advance at a CAGR of 7% and hold the second largest market share of USD 7,619 million by 2030. The utilization of various food & beverage vending machines at sports stadiums, like basketball, baseball, football, and others, contributes to the expansion of the market for vending machines. Significant factors are propelling the growth of the global market, which include an improvement in economic conditions and a rise in disposable income. After the economic crisis of 2009 in Europe, the European economy ground to a halt. However, a robust recovery from the recession led to significant economic development, particularly in Germany, and has contributed to a rise in middle-income groups' disposable income, functioning as a significant vending machine market driver.

Asia-Pacific is envisioned to rise at the fastest CAGR of 7.8% during the forecast period. Asia-Pacific region's expanding commercial and corporate industries contribute to product demand. The region's market is growing due to the increased availability of new and innovative vending machines. In addition, the adoption of western lifestyles and the rise in disposable income are predicted to fuel the vending machine market's expansion. The increased spending power of the Asia-Pacific population, urbanization, a large customer base, and a propensity for food goods from vending machines all contribute to the expansion of the market in the region.

Vending Machine Market Regional Analysis
Regional Growth Insights Download Free Sample

Top Key Players of Vending Machine Market

  1. Sandenvendo America, Inc.
  2. Crane Merchandising Systems
  3. Azkoyen Group
  4. Fuji Electric Co. Ltd
  5. Fastcorp Vending LLC
  6. Royal Vendors, Inc.
  7. Seaga Manufacturing Inc
  8. Jofemar Corporation.
  9. Selecta TMP AG
  10. Bianchi Industry

Report Scope

Report Metric Details
CAGR 6.7%
Forecast Period 2023-2031
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Segments Covered
  1. By Type
    1. Food Vending Machine
    2. Beverages Vending Machine
    3. Tobacco Vending Machine
    4. Others
  2. By Application 
    1. Hotels & Restaurants
    2. Corporate Offices
    3. Public Places
    4. Others
  3. By Technology
    1. Automatic Machine
    2. Semi-Automatic Machine
    3. Smart Machine
  4. By Sales Channel
    1. Online 
    2. Offline
Geographies Covered
  • North America
  • Europe
  • APAC
  • Middle East and Africa
  • LATAM

Recent Developments

  • In 2022, Azkoyen Group will participate in the Venditalia Worldwide Vending show to present their recent innovation: NEO Q's coffee and water dispensing machine.
  • In 2022, Azkoyen Group launched the Vitro S1 MIA. It is the most compact fresh milk coffee machine, incorporating the patented micro-injection air technology.

Vending Machine Market Segmentation

By Type

  • Food Vending Machine
  • Beverages Vending Machine
  • Tobacco Vending Machine
  • Others

By Application 

  • Hotels & Restaurants
  • Corporate Offices
  • Public Places
  • Others

By Technology

  • Automatic Machine
  • Semi-Automatic Machine
  • Smart Machine

By Sales Channel

  • Online 
  • Offline

By Region

  • Europe
  • North America
  • Asia-Pacific
  • LAMEA
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