Vending Machine Market Size, Share & Trends Analysis Report By Type (Food and Beverages Vending Machine, Fresh Food Vending Machine, Non-Food Items Vending Machine, Tobacco Vending Machine, Others), By Payment Mechanism (Cash-Based Vending Machine, Cashless-Based Vending Machine), By Temperature Control (Refrigerated Vending Machine, Non-Refrigerated Vending Machine), By Application (Hotels & Restaurants, Corporate Offices and Institutions, Public Places, Others), By Technology (Automatic Machine, Smart Machine, Semi-Automatic Machine) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global vending machine market size had a share of USD 18.8 billion in 2021, which is expected to reach USD 36,4 billion with a CAGR of 7.2% during the forecast period. The Vending Machine Market is driven by consumer demand for convenient and contactless access to a wide range of products, from snacks to personal protective equipment.

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 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.

Regional Analysis

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

North America is expected to grow 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 in the coming years and hold the second largest market share. 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 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.

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 and Beverages Vending Machine, Fresh Food Vending Machine, Non Food Items Vending Machine, and Others.

Food and beverage vending devices constitute a substantial market segment. To meet the requirements of consumers who are on the move, these machines provide an extensive selection of ready-to-eat meals, cold and hot beverages, and snack foods. Due to their accessibility and convenience, these devices are widely utilized in workplaces, public areas, and transportation hubs.

Vending machines for fresh foods have gained popularity as the demand for healthier and more substantive snack options has increased. By dispensing salads, sandwiches, fruits, and yogurt, these machines offer a nutritious and convenient alternative to conventional vending machine food. They are especially prevalent in universities and health-conscious environments.

The segment of vending machines for non-food items encompasses a vast array of products besides consumables. Prescription medications, personal hygiene products, electronic devices, and phone adapters are among the commonplace necessities that these machines dispense. Airports, pharmacies, and hotel lobbies are typical locations for vending machines containing non-food items, which cater to a variety of consumer requirements.

On the Basis of Payment Mechanism

The market segmentation includes Cash-Based Vending Machine and Cashless-Based Vending Machine.

Cash-based vending machines continue to hold a substantial market share, appealing to users who may not have access to digital payment options and those who prefer traditional payment methods. Coins and banknotes are accepted by these machines, making them accessible to a wide range of customers, including tourists and those who prefer to conduct minor transactions with cash. The cash-based segment continues to be especially prevalent in regions where currency transactions are more prevalent or where digital payment infrastructure is less developed.

As digital payment methods such as credit/debit cards, mobile wallets, and contactless payments become increasingly prevalent, the cashless vending machine market is experiencing robust growth. This market segment accommodates to consumers who value speed, security, and convenience in their vending machine transactions. In accordance with the prevailing trend toward a cashless society, it provides advantages such as remote monitoring, transaction tracing, and the possibility of loyalty programs. Furthermore, contactless vending machines frequently feature user-friendly interfaces and touchscreens, which enhance the overall vending experience.

On the Basis of Temperature Control  

The segmentation includes Refrigerated Vending Machine and Non-Refrigerated Vending Machine.

In the vending machine market, refrigerated vending machines constitute a crucial segment.  These gadgets include integrated refrigeration systems to keep perishable products including beverages, dairy, fruits, and snacks safe and fresh. They are used at companies, colleges, gyms, and transportation hubs where cold drinks and snacks are popular. This segment's revenue grows because refrigeration technology allows the distribution of many products.

Non-refrigerated vending machines are another major market. Without cooling, these devices are mostly used to distribute non-perishable commodities including chips, candies, munchies, cigarettes, and personal hygiene products. In isolated, industrial, or outdoor places with little or unnecessary electricity and refrigeration, they are often found. Due to their price and adaptability, non-refrigerated vending machines are popular in many situations.

On the Basis of Application

Based on the Application, the global market has been classified as Hotels & Restaurants, Corporate Offices, Public Places, and Others.

Vending machines are frequently found in hotels and restaurants, providing visitors with convenient access to snacks, beverages, and even personal care products. Staff and visitors are catered to by these machines, which guarantee the availability of essentials at all times.

During work hours, vending machines in corporate offices provide employees with a convenient option for obtaining beverages, snacks, and fast meals. Their ability to reduce the need for employees to exit the office for refreshments increases workplace productivity.

Public locations, including airports, railway stations, bus terminals, shopping malls, and educational institutions, are rife with vending machines. In order to meet the varied requirements of customers, consumers, and students, they provide an extensive selection of products, ranging from beverages and snacks to health and hygiene products.

The Others category incorporates a variety of industries and locations where vending machines are utilized. This may include hospitals, gyms, amusement parks, and even non-traditional vending machine solutions that sell specialized items, personal protective equipment (PPE), or electronic devices.

On the Basis of Technology

Based on the sales channel, the global market has been classified as Automatic Machine and Smart Machine.

Automatic vending machines constitute a substantial portion of the market for vending machines. These devices carry out tasks automatically. They usually offer a wide range of snacks, drinks, and convenience items with little user interaction. Automatic vending machines are common in companies, schools, and public spaces where product access is quick.

Smart vending machines are changing the industry. Machines with Internet of Things connectivity, touch screens, and real-time data analytics define this market category. Inventory management, remote monitoring, and targeted advertising are benefits of intelligent vending machines. They can improve customer experience and operations in airports, retail malls, and high-traffic metropolitan areas.

Impact of covid-19

COVID-19 has caused chaos in the world economy, humanitarian aid, and healthcare systems. The rapid spread of the virus has a substantial impact on the worldwide automobile industry, causing a drop in the demand for both new and used automobiles.

The pandemic has a tremendous impact on the electric vehicle industry as the vehicles are regarded as cutting-edge mobility and are prohibitively expensive to buy. Due to the vigorous spread of the virus worldwide, many commodities' demand and supply chains have come to a standstill due to the lack of transportation medium.

However, by the end of 2020, the COVID-19 situation had stabilized in several countries, leading to the end of demand-supply imbalance and a considerable increase in new automobile registrations. It was due to the necessity of avoiding public transportation for the commute.

Additionally, the transmission market has lost its market share due to low or near-zero automobile sales and new requirements. Although over 90% of autos in the United States have adopted automatic transmission, large-scale markets such as India have failed to adopt automatic gearbox.  Automatic transmissions have become increasingly popular among drivers worldwide, assisting the industry in dealing with the pandemic and delivering high statistics in the aftermath of COVID-19.

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.