New Delhi, May 21, 2024 (GLOBE NEWSWIRE) -- The global beverage vending machine market was valued at US$ 22.77 billion in 2023 and is anticipated to reach market valuation of US$ 43.04 billion by 2032 at a CAGR of 7.56% during the forecast period 2024–2032.
The United States stands out as a leader, boasting around 31% of the world's vending machines. Interestingly, Japan holds the record for the highest machine density, with an impressive one machine for every 30 residents. As per Astute Analytica, cashless transactions are rapidly transforming the beverage vending machine market landscape. In the US, nearly half of all machines now accept cashless payments, and this number is expected to surge to two-thirds by 2024. This shift is driven not just by convenience, but also by significant sales increases. Studies show that machines offering both cash and electronic payments can see revenue jumps ranging from 10% to 35% per unit. Mobile payments are a key driver within this cashless trend, experiencing a remarkable rise from 51% to 62% usage in just one year.
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Specialization and automation are also shaping the future of vending machines. In the US, specialized machines offering unique selections are gaining traction, accounting for 15% of total sales in 2023, up from 10% in 2015. Within this segment, pre-ground, freeze-dried beverage options dominate the market with a commanding 37.79% share and are projected to maintain the highest growth rate at 8.00% CAGR.
Commercially focused applications are the primary drivers of the market, holding a sizable 66.3% share in 2023. Interestingly, within the level of automation, semi-automated machines currently hold the largest market share at 59.75%. Despite the rise in cashless options, the cash payment segment remains surprisingly strong, holding the highest market share at 64.56% in 2023. However, both cash and cashless segments are expected to experience healthy growth, with cash systems projected to maintain the highest CAGR of 7.98%.
Looking regionally, North America stays supreme, holding about 36% of the total market revenue. The US is expected to maintain its strong growth trajectory. The Middle East and Africa, along with Latin America, are also poised for moderate to steady market expansion in the coming years.
Consumer Preferences and Behavior in Global Beverage Vending Machine Market
- Cold beverages outsell bagged snacks and cold food in most markets, accounting for 30% of all vending machine sales in 2023.
- Several consumers prefer to shop through unattended retail channels such as vending machines, according to data published by PYMNTS.
- In hotels and restaurants, vending machines have been installed to attract consumers and provide additional service to guests by effectively selling products.
- Consumers are increasingly seeking healthier options in vending machines, such as water, juices, nuts, and meal-replacement options.
- The profits on healthier product lines can be much greater than other foods and beverages.
Key Findings in Beverage Vending Machine Market
| Market Forecast (2032) | US$ 43.04 Billion |
| CAGR | 7.56% |
| Largest Region (2023) | North America (36.31%) |
| By Type Beverages | Pre-Ground, Freeze-Dried Granules Machines Segment (19.6%) |
| By Payment System | Cash Systems (64.56%) |
| By Application | Commercial Applications (66.03%) |
| By Beverage | Cold (40.51%) |
| By Operations | Semi-Automated (59.75%) |
| By Technology | Touchscreen (39.39%) |
| By Installation | Floor Standing Coffee Vending Machine (60.20%) |
| By Payment Option | Cash Systems (64.56%) |
| Top Trends |
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| Top Drivers |
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| Top Challenges |
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Smart Technology is Reshaping the Beverage vending Machine Market: over 3.6 Million Vending Machines to Be Linked By 2025
The integration of smart technology in the beverage vending machine industry is revolutionizing the market, with a significant impact on both the consumer experience and operational efficiency. The global smart vending machines market is expected to grow at a CAGR of 12.8%, from 2023 to 2032. This growth is driven by the adoption of IoT, RFID, and AI technologies, which are enhancing the capabilities of vending machines. As per Astute Analytica, smart vending machines are now equipped with real-time inventory management and data analytics, thanks to IoT sensors and smart software. These advancements allow for real-time inventory monitoring, ensuring optimal stock levels and reducing waste. Additionally, AI and machine learning algorithms enable these machines to offer personalized product recommendations based on purchase histories and customer interactions.
The global beverage vending machine market is witnessing a surge in connected machines, with an estimated 3.6 million linked machines expected by the end of 2025. This connectivity facilitates the collection and analysis of abundant data, allowing vending companies to cater more precisely to customer preferences and increase revenue. Furthermore, the integration of contactless payment options contributes to a safer and more hygienic vending experience. AI-powered vending machines can also track product freshness, popularity, and target demographics, which can lead to a significant increase in revenue, potentially up to 150%. The ability to remotely manage and monitor vending machines is another advancement, allowing businesses to track sales data, monitor machine health, and update product offerings from a centralized location. In Japan alone, it's estimated that 2.08 million vending machines are already connected with AI.
From Busy Lifestyles to Health Concerns Factors Fueling the Dominance of Pre-Ground, Freeze-Dried Granules Beverage Vending Machine Market, Controls over 19.6% Revenue Share
The demand for pre-ground, freeze-dried granules beverage vending machines is the growing need for convenience due to busy lifestyles and urbanization. Vending machines offer a quick and easy way to purchase beverages, especially in offices, commercial spaces, and public areas. The increasing global consumption of coffee and the growing adoption of smart kitchen appliances are also boosting the demand for coffee vending machines. Coffee is one of the most popular beverages worldwide, and the growing number of coffee shops and commercial offices further contributes to the demand for these machines. The coffee vending machines market is expected to grow at a CAGR of around 5% during the forecast period.
While the high installation costs of vending machines can somewhat confine beverage vending machine market growth, manufacturers are finding solutions to upscale their offerings. There is a growing trend towards healthier beverage options, with a surge in demand for zero-sugar and low-calorie drinks. For example, in the U.K., sales of zero-sugar beverages increased by 8.2% from the first half of 2022 to the first half of 2023, while high-sugar content beverages saw a significant drop. This shift in consumer preferences is driving the demand for healthier alternatives in vending machines.
Simplicity, Affordability, and Efficiency of Semi-Automatic Beverage Vending Machines Outsell Fully Automatic Models, Contribute More Than 59.75% Market Share
Semi-automatic vending machines are more commonly sold than fully automatic models due to several factors. One key reason is their lower cost and maintenance requirements. The simpler mechanics and fewer electronic components in semi-automatic machines make them more affordable for operators, with the average cost ranging from $3,000 to $5,000, compared to upwards of $10,000 or more for fully automatic models. This lower upfront investment makes semi-automatic machines more accessible for smaller businesses and entrepreneurs.
In addition to cost, semi-automatic machines in the global beverage vending machine market tend to be more reliable and durable than their fully automatic counterparts due to their simpler design and fewer moving parts. A survey of vending machine operators found that 78% reported semi-automatic beverage machines required less maintenance and had a longer lifespan compared to fully automatic models. They also offer more flexibility in product selection and customization, allowing operators to easily adjust the product mix and pricing to suit their location and target audience. For example, a semi-automatic machine in a school setting might focus on healthier beverage options, while a machine in an office building could offer a wider variety of sodas and energy drinks.
Furthermore, semi-automatic machines are generally easier to use and restock than fully automatic models. A time-motion study found that operators spent an average of 30% less time restocking and maintaining semi-automatic beverage machines compared to fully automatic models. Apart from this, semi-automatic vending machines typically consume less energy than fully automatic models due to their simpler cooling and dispensing mechanisms. A study by the National Automatic Merchandising Association (NAMA) found that semi-automatic beverage machines used an average of 20% less energy than fully automatic models, resulting in lower operating costs and a smaller environmental footprint.
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Dominating the Beverage Vending Machine Market: A Competitive Analysis of the Top 5 Players Holding Over 54% Market Share
The beverage vending machine industry is led by five major players: Crane Co., Fuji Electric, Azkoyen Group, SANDEN HOLDINGS CORPORATION, and Selecta Group. Collectively, these top five companies generate over 54% of the market revenue, indicating a significant level of market concentration. Crane Co. stands out as the market leader, commanding a substantial 16.18% market share.
Crane Co.'s position as the leader in the beverage vending machine market can be attributed to several factors, including its extensive product portfolio, strong brand recognition, and global presence. The company offers a wide range of beverage vending machines, from cold drink dispensers to hot beverage machines, catering to diverse customer needs. With over 95 manufacturing facilities spread across Asia, Europe, and North America, Crane Co. has a formidable global footprint. This extensive network ensures that its vending machines are readily available to customers worldwide, enhancing the company's market reach.
Crane Co. has demonstrated consistent sales growth. In 2023, the company generated a significant revenue of USD 2.41 billion from its diverse product line, which includes vending machines. This growth is further supported by the company's strategic positioning of products and the availability of complementary items such as spare parts and accessories. The company's marketing mix is designed to maximize customer satisfaction by focusing on product, price, promotion, and place. Crane Co.'s promotional efforts aim to create brand awareness and increase market share, which has been effective in driving sales.
Continuous investment in R&D has been a cornerstone of Crane Co.'s strategy, leading to quality improvements in products and services in the beverage vending machine market. This focus on innovation is crucial for maintaining a competitive edge in the evolving vending machine market. The financial performance of the company is robust, with a net income of USD 256 million in 2023, and total revenues reaching USD 2.41 billion.
Global Beverage Vending Machine Market Key Players
- Azkoyen, S.A.
- Evoca Group
- Nestle SA
- Selecta Group
- Fuji Electric Co., Ltd.
- Godrej
- Crane Company
- Bianchi Industry Spa
- Cothas Coffee Co.
- Atlantis
- Rhea Vendors Group S.p.A.
- Other Prominent Players
Market Segmentation:
By Type of Beverage
- Pre-ground, freeze-dried granules
- In-cup vending machines
- Bean-to-cup Vending Machines
- Capsule or Pod Coffee Machines
- Fresh Brew Vending Machines
- Filter Coffee Machines
- Instant Vending Machines
- Soluble Coffee
- Other
By Application
- Household
- Commercial
- Hospitality (HoReCa)
- Hotels
- Bars & Restaurants
- Café Outlets
- (QSRs) Quick Service Restaurants
- Professional Caterers
- Entertainment (Recreation Facilities)
- Transportation (Airlines and Rail/Cruises)
- Enterprises
- SMEs
- Large Enterprises
- Others
- Hospitality (HoReCa)
By Operation
- Semi-Automated
- Fully Automated
By Technology
- Keypad
- Touchscreen
- Mobile App Based
By Beverage Temperature
- Hot
- Cold
- Both
By Installation
- Floor Standing Beverage Vending Machine
- Tabletop Beverage Vending Machine
By Payment Option
- Cashless Systems
- Cash Systems
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa (MEA)
- South America
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