The Global Vending Machine Market, estimated at USD 21.50 billion in 2024, is projected to reach USD 27.70 billion by 2029, exhibiting a CAGR of 5.10% from 2024 to 2029.
The industry is expected to achieve a higher growth rate in the next five years. As of now, the companies have shifted their focus to the development of green vending machines as well as connected and smart vending machines. In addition, as per a survey, North America and the rest of the world both have more or less 2.1 million installed connected vending machines each which is anticipated to increase to 12.3 million units worldwide by 2027. Also, it is estimated that at the end of the projection period the worldwide penetration rate will climb up to 75.7 per cent. Apart from North America and Europe, the major market is China with a significant volume of connected vending machines.
The shift in customer choices, buying behaviour and technological developments have resulted in various transitions in the vending machines market in the last 10 years. Moreover, health and sustainability are the two highly important changes that took place apart from the inclination towards personalisation, cashless payments, remote surveillance, and maintenance. Furthermore, the companies are using motion sensors, power-saving modes and LED lights which are making it an energy-efficient machine. Green VMs are utilising environment-friendly packing supplies like recycled paper, composite materials and biodegradable plastics. All these are augmenting the vending machines market value.
One such technology is facial recognition and its high frequency in private and public-sector organizations is expanding the other problems which are of great importance to the privacy department in countries. This is already hindering the expansion of the vending machines market and will continue to do so if sufficient and appropriate actions are taken timely.
For instance, in February 2024, over two dozen vending machines will be removed from Southwestern Ontario University because of complaints by students regarding facial recognition technology which is a key security issue. And, the university was not aware of the potential risks involved in the technology.
These are extremely popular in public places and companies but most of the time these machines are left unattended after suffering any issue or problem. This pattern is more prevalent in developing nations and even in certain developed economies as well. Moreover, the dynamic nature of digital payment technology, network and connectivity ecosystems and especially the health and wellness sector are leading consumers to change their choices quickly. Also, different climatic conditions and seasons are influencing the consumption of certain food and other items which is hurting the vending machines market.
These are rapidly gaining popularity in East and South Asia like Japan and South Korea and in Oceania nations such as Australia and New Zealand. Also, the industry in India is quickly growing with massive earning potential. It is the biggest among all the developed countries in terms of digital payments with the rapid increase in urban population and spending power. As per industry experts, the profit margins in India can vary between 43 to 86 per cent depending on the city.
Besides this, reverse vending machines are also gaining traction. These are used for dumping cans, plastic bottles and other containers which subsequently reward the people with an incentive or a payment.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
5.10% |
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Segments Covered |
By Application, Payment Mode, End User and Region |
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Various Analyses Covered |
Global, Regional and Country Level Analysis, Segment-Level Analysis; DROC, PESTLE Analysis; Porter’s Five Forces Analysis; Competitive Landscape; Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
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Key Market Players |
American Vending Machines, Automated Merchandising Systems, Azkoyen Vending Systems, Bianchi Industry SpA, Bulk Vending Systems, Continental Vending, Evoka Group, Crane Merchandising Systems Inc, Fuji Electric Co., Ltd, Sanden Holdings Corporation, Cantaloupe Systems, Westomatic Vending Services Ltd., Royal Vendors, Inc., Glory Ltd., Seaga Manufacturing, Inc., Orasesta S.p.A., Sellmat S.r.l. |
The office segment holds the maximum share of the vending machines market and is estimated to register an elevated growth rate in the coming years. The increase of contactless VMs in office buildings or work premises in developing countries like India is rising at a fast pace. Also, the emergence of smart vending machines is further enabling the employees and IT support services to develop a method which provides staff with self-serve. Many big MNCs have different VMs for various other purposes than food like computer or laptop accessories, stationary items, medical supplies, etc.
The cashless segment is expected to lead the category of the vending machines market. The rapid growth in the digital payments infrastructure and associated service providers are the key drivers of the segment’s development. Considering the exponential rise in the frequency of India’s digital transactions cashless VMs will quickly consolidate its position in the country. Interestingly, more than 65 per cent of vending machines are completely cashless against 56 per cent in 2021. Further, the average cash transaction in 2022 was 1.36 dollars whereas the cashless accounted for 2.11 dollars. Additionally, the use of contactless payment options like mobile wallets or QR code-based payment facilities saw a tremendous spike.
The QSR, Shopping Malls & Retail Stores segment is experiencing increased traction across the regions which is driving the vending machines market forward. This can be credited to swift urbanization, rising disposable income and changing lifestyles. The evolving eating habits have surged the demand for comfort and quick snack items and drinks among Generation Z and Alpha. In addition, governments around the world have initiated or are in the process of building smart cities and coupled with the growth in the customer’s spending power are contributing to achieving technological advancements and expanding the vending machines market.
North America is a major player in the vending machines market with the highest industry share. This is due to the increased pace of technological development. Moreover, as per the U.S. Bureau of Labor Statistics, in 2024, there was a 128.40 per cent increase in food prices i.e. 45.68 dollars in mobile vendors and vending machines against around 2o dollars in 1997. And, the inflation rate on average is 3.11 per cent on food from such machines whereas the total inflation rate in this same period was 2.47 per cent. This shows that foodstuffs in these machines were more expensive. Apart from this, vending machines for drugs and medical supplies are rapidly making their presence in the US and Canada. Like, free harm reduction vending machines were installed in Hamilton County, Ohio and in Winnipeg, Manitoba, Canada.
Europe is expected to propel further at an elevated growth rate during the forecast period of the vending machines market. It has over 1.5 million connected vending machines. Besides this, Televend (INTIS), Nayax, Crane Payment Innovations and Ingenico are some of the prominent companies in the regional industry. Moreover, the penetration rate of these is moderate and rising. And, cashless payments remain the key contributor to the thriving vending machines market.
Asia Pacific is believed to grow at a higher CAGR during the forecast period for the vending machines market. Countries like China, Japan, South Korea and India are pushing forward the regional market development. In recent times, the quantity of these machines has grown remarkably in China and is believed to emerge as the main player in the regional market. As of the end of 2022, InHand Networks accounts for a major portion of the Chinese industry with around 300 thousand vending machines. Moreover, South Korea sold vending machines worth around 4.37 million to other nations which positions itself at the 39th position among the largest exporters of such machines. Additionally, these are very common in public places and buildings in Japan and the industry is especially propelled by a high level of availability and convenience it provides to its people.
Middle East and Africa vending machines market is likely to move further at a moderate pace in the coming years. This can be attributed to the rising installation of these machines in hotels, shopping malls and airports. In addition, the United Arab Emirates and Saudi Arabia are expected to be the top adopters in the ME region. Also, recently in May 2024, the UAE launched its latest open-source GenAI model called Falcon 2 to challenge the top technology companies in the world. Hence, such advancements will propel the MEA vending machines market.
Latin America is anticipated to experience steady growth in the vending machines market in the projection period. This is because of the evolving lifestyle of customers and the change in customer choices for premium food and beverages and convenient and ready-to-eat snacks. Moreover, the growing sales through food vendors, supermarkets and hypermarkets along with the tourism sector are elevating the region’s market growth rate. In addition, the rising collaboration between F&B companies and tech giants is further fuelling the demand for automatic retail vending machines. Also, Brazil and Argentina are swiftly implementing QR codes in food stands and bars owing to the wide popularity of soft drinks and making a big portion of VM revenue in LA.
American Vending Machines, Automated Merchandising Systems, Azkoyen Vending Systems, Bianchi Industry SpA, Bulk Vending Systems, Continental Vending, Evoka Group, Crane Merchandising Systems Inc, Fuji Electric Co., Ltd, Sanden Holdings Corporation, Cantaloupe Systems, Westomatic Vending Services Ltd., Royal Vendors, Inc., Glory Ltd., Seaga Manufacturing, Inc., Orasesta S.p.A., Sellmat S.r.l.
In April 2024, Lavazza which is an Italian coffee roaster press released that it will increase its shareholding in IVS Group to 48.76 per cent for 185 million euros. Also, it already had an agreement to completely purchase its vending machine business in 2027.
In March 2024, it was announced that Ulta Beauty is at the testing stage in the development of a next-generation SOS smart vending machine with an in-store sampling program. This offers customers fast product discovery and convenience.
In March 2024, Pearson India introduced their first vending machine for books for readers in Bengaluru. They are aiming to improve the customer’s overall buying experience by giving them access to a broad variety of educational and learning books currently issued by them.
This research report has segmented and sub-segmented the global vending machines market based on type and region.
Frequently Asked Questions
The Global Vending Machine Market is projected to grow at a CAGR of 5.10% from 2024 to 2029, with the market size expected to reach USD 27.70 billion by 2029 from USD 21.50 billion in 2024.
The primary drivers of the Vending Machine Market include technological advancements, ease of vending, internet connectivity, cashless payment options, adaptability for various locations, cost-effectiveness, and demand for continuous supply of goods and services.
Major challenges in the Vending Machine Market include stringent regulations against junk food and tobacco usage, low return on investment (ROI) due to rental space costs and operating expenses, and the need for retrofitting existing vending machines with advanced features.
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