Market Scenario
Global beverage vending machine market was valued at US$ 22.77 billion in 2023 and is projected to hit the market valuation of US$ 43.04 billion by 2032 at a CAGR of 7.56% during the forecast period 2024–2032.
In a fast-paced society, beverage vending machine market offer a convenient solution to thirst. They’re available all day, every day and have features that make them appealing in different environments and situations. Whether you’re seeking an energy boost during a late-night shift or need a snack during a study break, these machines are reliable. Gone are the days of just finding traditional sodas in vending machines. Nowadays, they come equipped with energy drinks, flavored waters and more wholesome alternatives like coconut water. Customization is at an all-time high as well — Coca-Cola Freestyle allows users to adjust flavors and carbonation levels so that everyone’s happy with their purchase. The integration of contactless payment is another feature that has changed the game for vending machines. Mobile payments, credit cards and even cryptocurrency can be used to pay for drinks and snacks. The hygienic value of this convenience can’t be overstated here in 2021.
We’ve also entered an era where smart technologies and market players in the global beverage vending machine market have found their way into these contraptions. Touchscreens not only make navigation easy but allow users to view nutritional information too. Facial recognition technology is being tested out by Luce X2 Touch TV in Japan — it suggests drinks based on your age, gender and even the weather outside. Today, environmentally friendly designs are becoming more popular too; some options include LED lighting for energy efficiency or solar-powered capabilities altogether. Beverage vending machines are also being installed with remote monitoring capabilities thanks to IoT (Internet of Things). This means operators can keep track of inventory, troubleshoot issues and adjust pricing from miles away if necessary.
As much as marketers love them for their bold graphics, consumers love them for free drinks: Like Machine gained attention when Pepsi rewarded Facebook interactions with beverages. Companies are seeing the benefits of having beverage vending machines at work too; employees don’t have to leave campus to grab snacks or lunch elsewhere, which further drives demand for them.
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Global Outlook of Vending Machines
According to Astute Analytica’s recent report on the beverage vending machine market, the U.S. has the largest number of vending machines in the world, with approximately 31% of all machines installed. However, Japan is said to have over 5 million vending machines on a per capita basis, which means about one machine for every 25 Japanese residents. The data shows that as of the end of 2022, Japan had about one vending machine installed for every 25-30 residents. If you include money changers, coin lockers, and other rental machines in general, the ratio comes out to be about one unit per 25.7 people.
On the other hand, if we were to apply Japan’s ratio on the U.S population — which currently stands at approximately 331 million — it would require around 13.8 million units across America. But as mentioned earlier, while Japan leads in terms of density of installed vending machines in its country and despite having just one unit short per resident than what was stated above (or roughly one for every 50 people), the U.S is still king when it comes to sheer quantity with close to seven million installed units.
The popularity in Japan beverage vending machine market may be due to its convenience and variety of products and its alignment with their fast-paced lifestyle. In addition to Japan and the United States — which are both large markets no matter how you look at it — there are many countries around the world that have been established as big markets because they have a large population and many small businesses operating them.
Market Dynamics
Driver: Cashless Payment Options in Beverage Vending Machines
Mobile payment options like Apple Pay, Google Wallet, and Samsung Pay are becoming increasingly prevalent in the vending machine industry. Vending machines manufacturers in the beverage vending machine market have these options so that they don't fall behind with customer expectations. One notable partnership is between Vagabond and Apple Pay in 2020, which enabled cashless payments for machines all throughout the United States. There’re also contactless card payments which can be used on beverage vending machines that allow customers to simply tap their card on the reader to pay. Physical contact isn't necessary anymore when it comes to making purchases, as proven by UK's 62% increase of these transactions in 2022.
QR code payments are new and fresh methods recently adopted by the beverage vending machine industry. Customers can scan a QR code displayed on a machine using their phone to complete their purchase. People in Asia seem to particularly enjoy this method of payment, as mobile payment apps like WeChat and Alipay have already gained massive popularity.
Astute Analytica’s recent report on beverage vending machine market predicts an astounding CAGR of 6.76% for cashless payments from now until 2032 in the beverage vending machine market. In 2019, only 23% of vending machine transactions were made without cash or coins; however, that number jumped up to 33% just last year in 2023. The US is predicted to have cashless payments accepted at around two-thirds of all vending machines by the year 2024 with Japan trailing close behind at a projected 40%.
Trend: Specialized Vending Machines for Beverages
Specialized vending machines for hot beverages, such as coffee and tea, are becoming increasingly popular across the global beverage vending machine market. In 2021, the UK-based Costa Coffee chain launched a new range of hot beverage vending machines with Nestle that offer all kinds of customization options. Alcoholic drink vending machines are also becoming more common, especially in countries where alcohol is legal. These machines carry beer, wine and liquor. Alcoholic drink vending machines are everywhere in Japan, with many convenience stores and supermarkets having them installed. Frozen drink vending machines make all kinds of frozen drinks like slushies, smoothies and frozen cocktails. In 2020, US-based F'real partnered with 7-Eleven to launch a new range of frozen drink vending machines.
In 2023 specialized vending machine accounted for 15% of total sales from these type of devices in the United States, compared to just 10% in 2015.
Challenge: Competition from Convenience Stores
Beverage vending machines have an old foe: convenience stores. The rise of the c-store threatens both snacks and non-alcoholic beverage sales through vending machines, with the latter category’s share from these venues climbing from 30% in 2015 to 35% in 2023. It isn't hard as to figure out why — convenience stores simply offer more than vending machines in the beverage vending machine market. According to a report, c-stores boast an average of 1,500 stock keeping units (SKUs), while vending machines only offer consumers about 100 SKUs. Furthermore, c-stores are open for business at any time of the day. An astounding four-fifths of them stay open all day and night, according to a report by the National Association of Convenience Stores. C-stores’ numbers also show that they keep their doors wide open for customers: In 2022, there were more than 170,000 c-stores in the U.S., up from roughly 120,000 back in 2010 (Source: National Association of Convenience Stores). What's more is that this industry is expected to grow at a CAGR of 4.5% between now and 2032. Beverage vending machines had just a two percent slice of all non-alcoholic beverage sales last year — down one percentage point from where it was five years earlier in 2015.
Segmental Analysis
By Type of Beverage
The global beverage vending machine market can be segmented based on the type of beverage offered. In 2023, the pre-ground, freeze-dried granules machines segment held the largest market share at 37.79%, and it is forecasted to grow at the highest CAGR of 8.00% during the anticipated timeline. This section consists of vending machines that dispense coffee, tea, and hot chocolate made from pre-ground or freeze-dried granules. The current appeal for these kinds of machines can be traced back to the increasing need for fast and easy access to hot drinks, especially in public spaces like offices, hotels etc. The segment further divided into single-serve and multi-serve machines. Single-serve machines dispense individual cups of beverages while multi-serve machines will give you bigger quantities like carafes or pots. But if we focus on single serve machines alone, they are expected to dominate the market due to the demand for personalized and customizable beverage options increasing throughout time. The introduction of eco-friendly and biodegradable cups and pods will definitely boost growth as consumers become more conscious about their surrounding environment.
Other beverage segments in the beverage vending machine market include soft drinks, juices, and bottled water vending machines. Soft drinks have been popular for a long time because of their carbonated nature which people love. Also brands like Coca-Cola and PepsiCo have played a big role in making them mainstream. The second largest segment here is bottled water however it's predicted to grow at a steady pace considering there are many other health conscience alternatives these days.
By Application
In 2023, commercial applications dominated this global beverage vending machine market by accounting for 66.03% of total Market Share. This specific sector was also expected to surge with growth at an exponential CAGR during its timeline. Commercial applications involve installations being set up in offices shopping malls airports stations etc. Their growth has been sparked by factors such as an increase in workforce, urbanization, and the demand for convenient food and beverage options. The non-commercial sector which includes educational institutions, hospitals etc is also projected to witness steady growth. One of the reasons being that vending machines in these areas offer a cost-effective solution for providing beverages to employees or patients. The rising health consciousness among consumers has been driving this new wave of demand for healthier drink alternatives in non-commercial settings.
In the commercial sector itself, the office sub-segment is expected to hold the largest market share. This is due to an increase in the number of white-collar employees where most people prefer getting their drinks from a vending machine. The shopping malls and retail stores sub-segment is projected to have significant growth as well because footfall will increase over time with new customers visiting everyday. The airport and railway station sub-segment is estimated to grow at a steady pace because there will always be somebody making a quick stop for something on their way out.
By Operation
In 2023, the semi-automated segment of the beverage vending machine market held the highest market share at 59.75%. These machines require some level of manual intervention such as refilling ingredients or collecting cash. Though they’re less expensive compared to fully automated machines many say they're easier to maintain too. The fully automated bit is expected to grow the most during the forecast period. These machines don't need any human interference, giving them plenty of opportunities to take over at a CAGR of 8.02%. Fully automated machines come with loads of fancy features like touchscreens, cashless pay options, and remote monitoring. This helps contribute to their growth in a world that’s always looking for more convenience and advanced technology.
That fully automated segment is even broken down into smart and non-smart machines. Smart ones are loaded with things like AI, machine learning, and IoT capabilities so it can give consumers some personalized recommendations based on your previous purchases while keeping inventory optimized. The growth here will be driven by people who want better user experiences and companies that can benefit from advanced technology. On the other hand, non-smart machines will still see some steady growth but nothing huge.
By Payment System
Based on the payment system, the beverage vending machine market is segmented into cash and cashless systems. In 2023, the cash systems segment held the highest market share at 64.56% and is expected to grow at the highest CAGR of 7.98% during the forecast period. Cash systems are the traditional payment method in vending machines and are still widely used, especially in developing countries.
However, the cashless systems segment is gaining traction, driven by the increasing adoption of digital payment methods and the demand for contactless transactions. Cashless systems include credit/debit card readers, mobile payment options, and NFC (near-field communication) technology. The growth of this segment is expected to accelerate in the coming years, fueled by the increasing penetration of smartphones and the growing preference for digital payments among consumers.
The cashless systems segment is further divided into card-based and mobile-based payment systems. Card-based systems allow users to pay using credit or debit cards, while mobile-based systems enable payment through mobile wallets or apps. The mobile-based sub-segment is expected to witness significant growth, driven by the increasing adoption of smartphones and the growing popularity of mobile payment apps such as Apple Pay, Google Pay, and Samsung Pay. The card-based sub-segment is expected to grow at a steady pace, driven by the increasing penetration of credit and debit cards in developing countries.
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Regional Analysis
North America has been crowned king when it comes to beverage vending machine market - holding about 36% share in total revenue terms. The United States plays a leading role here too - determining a lot about how well this region does as a whole given its affinity for packaged beverages among consumers that love nothing more than convenience offered up first-hand from vending machines themselves; so, they'll always be big supporters even if other things were different elsewhere across this massive country land size wise! Vending machines have also recently become very popular with millennials, which is contributing to the market growth in this region. The region is expected to witness steady growth during the forecast period, with the increasing adoption of smart vending machines and the expansion of the beverage industry.
Europe takes third largest position in the global beverage vending machine. Countries like Germany, France, and United Kingdom are major contributors to the market growth in this region. Demand for food on-the-go (beverage included) has never been higher than it is now along with more public places popping up so quickly. This all leads back to why they've been seeing such a boom in sales lately - not to mention how advanced digital payments are getting lately!
Asia Pacific remains second most dominant beverage vending machine market. China, Japan and India are anticipated as those expected to drive these numbers further up by then alone - but it's no secret that hot beverages remain a popular go-to option among many people across all these growing urban populations here; we're excited about what's next! Noodle vending machines have also gained extensive popularity throughout Asia at an increasing rate. In fact, Japan is already known for having one of - if not the highest density of beverage vending machines in the world already so they’ll be sure to continue pushing out new models for everyone.
The Middle East and Africa (MEA) is projected to exhibit moderate growth in the beverage vending machine market over the forecast period. Increasing adoption of vending machines in airports, shopping malls, and hotels among others spaces is bolstering the market growth in this region. South Africa and United Arab Emirates are some of the key contributors to market growth in MEA. The booming tourism industry coupled with growing demand for convenient food and beverages will further drive the adoption rate of beverage vending machines in the region.
Latin America is expected to register a steady expansion in the beverage vending machine market during 2024-2032. Brazil and Argentina are among prominent contributors to the regional industry growth. Growing urbanization along with rising disposable incomes and changing lifestyles are augmenting demand for convenient food and beverages including vending machines. In addition, surge in commercial spaces like offices and public places is fostering market expansion across Central & South America.
Top Players in Global Beverage Vending Machine Market
Market Segmentation Overview:
By Type of Beverage
By Application
By Operation
By Technology
By Beverage Temperature
By Installation
By Payment Option
By Region
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