Retail Vending Machine Market Growth & Trends
The global retail vending machine market size is expected to reach USD 129.40 billion by 2030, registering a CAGR of 10.7% over the forecast period, according to a new report by Grand View Research, Inc. The industry growth can also be attributed to the ability of these machines to deliver goods quickly, making it an extremely convenient option for consumers. Vending machine sales appear to be a potential means of food and beverage distribution, as these machines can sell various consumables, such as cigarettes and lottery tickets, in addition to snacks and beverages. As a result, vending machine operators can create high revenue by strategically installing them in corporate buildings, schools, malls, train stations, and airports, among other locations.
In recent years, IoT technology has provided vending machine operators with the opportunity to improve their businesses by tracking products and assessing what is popular in machines. By tracking stocks through connected devices, vending machine operators can be instantly alerted about low stock levels in their vending machines, which may ultimately reduce expenses and improve customer service. According to Sigfox, the noticeable use of IoT in the vending industry is in plug-and-play smart button devices that attach to machines, enabling individuals to contact facility management instantly. By payment mode, cashless payment technology is expected to witness tremendous growth as it goes hand in hand with payment security.
Although data breaches & scams have impeded the convenience of using a debit/credit card, vending machine operators are working with certain financial institutions to implement the strictest security measures to protect both customers and operators. Operators are adopting various strategies to maximize profit by being at the right location with the right products, sourcing products in bulk, investing in intelligent vending machines to gain consumer insights, and other ways. For instance, hot food and sandwich vending machines may do well in business environments, universities, and schools, while, in most public locations, hot drinks like coffee, tea, and hot chocolate have high demand. Industry players face intense competition from each other, as some of them operate at several locations and have large customer bases. The presence of many small-scale players is also leading to increased competition.
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Retail Vending Machine Market Report
Retail Vending Machine Market Report Highlights
- North America accounted for the highest market share in 2021. This region is projected to register a significant CAGR over the forecast period
- The rapid rise of self-service technology in this region has created new business avenues for vending machines. Thus, several operators are focusing on launching their businesses in strategic locations across the region
- The cashless payment segment is estimated to register the fastest CAGR from 2022 to 2030 as this payment method offers convenience and logistical solutions
- Moreover, handling cash in vending machines is a costly process for operators, in terms of time spent collecting and counting money and losses incurred through vandalism and theft
- The office segment is likely to remain at the forefront throughout the forecast period. Vending machines are installed in workplaces to offer employees a convenient, affordable, and quick option for buying food
