Vending machines are starting to gain traction in India thanks to technological advancements, but it is still a minor market when compared with others such as the USA and Japan.
In India, certain locations are more likely to have vending machines, including metro stations, airports, hotels, restaurants, and offices but they are still uncommon compared to other parts of globe mentioned above and this is partly down to different behaviors and routines in India.
Driving global retail vending
According to analysis from Future Markets Insight, North America is anticipated to dominate the market in years to come, expecting to accumulate 31% revenue by the end of 2022.
Dominance can be attributed to the increasing installation of vending machines across the region. As per the data issued by the Center for Disease Control and Prevention, in October 2019, the state of North Carolina announced the placement of 76.7% of its vending machine on its interstate highway.
Furthermore, the increasing trend of self-service technology in the region is projected to be another salient cause driving the retail vending machine market in North America. Various vending machine operators are aiming to launch their business in strategic locations across the region.
The global retail vending machine market is likely to secure US$ 55 Billion in 2022 and reach US$ 130 Billion by 2032. From 2022-2032, the market is expected to display a CAGR of 9%. The growth of the market can be attributed to the increasing demand for on-the-go food and beverages because of changing lifestyles of consumers.
The willingness to adopt innovative products among the expanding populace is expected to drive the market significantly. Various types of vending machines have been introduced to produce fast food for consumers, which will benefit the industry.
For instance, France Pizza ATM comes up with a Pizza vending machine that is able to hold 96 pizzas, accepts cash, has a touch screen, debit/credit card, and contactless payment.
Increasing adoption of a vending machines in a large number of fitness clubs around the globe for offering their clients supplements like soft drinks, protein bars, energy drinks, and others, is anticipated to boost the demand for vending machines, thus, expanding the industry during the forecast period.
As per International Health, Racquet and Sportsclub Association 2019 Report, the global fitness industry has witnessed a rise in membership of 183 million with an anticipated revenue generation of US$ 94 billion in 2019.
Innovations such as interactive display systems, voice recognition, and big data integration, have made it more convenient and user-friendly for consumers, thus, casting a positive impact on the global vending machines market during the forecast period.
Challenging global retail vending
The reluctance of developing and underdeveloped nations to adopt vending machines owing to high expenses associated with such equipment is anticipated to hamper the market during the forecast period.
The equipment demands high maintenance, and a high risk of robbery, which is likely to limit the industry growth during the forecast period. Other factors affecting the market negatively are the imposition of stringent rules and regulations regarding the sales of junk and unhealthy food, tobacco products, and others.
However, the growing demand for vending machines in various spaces, from offices to high-end restaurants, and crowded bars to public places, are expected to counter the hampering factors and drive the growth of retail vending machine during the forecast period.
The role of startups
Byte Foods, 365 Retail Pro, Daalchini, Farmer’s Fridge, ZoomSystems, Swyft, Stockwell, Gobbly, Vengo Labs, and Vendekin, are some of emerging start-ups in the retail vending machine market. Startups have an innovative approach to marketing their products, which will benefit the market during the forecast period.
- For instance, Vendekin, a start-up that helps in product dispensing of beverages and other products through cashless payment and also offers supply chain alerts and analytical reports to brands and distributors. It converts an existing vending machine to an intelligent one by providing the hardware that gets installed in the existing vending machine while the app for both consumer and distributor is installed on the users’ phone.
- In May 2022, 365 Retail Pro acquired Sentry, an Australia-based vending management software company. Through this acquisition, the company intends to leverage Sentry’s vending machine and micromarket management platform that includes a full-featured web application as well as a driver and inventory management mobile app. Its most notable features include intuitive planograms and optimized merchandising, routing, market maintenance and picking systems—all supported by a complete back-office system. The deal will add value to the company’s expanding suite of consumer-centric solutions.