Food and Beverage Vending Machine Market - Forecasts from 2024 to 2029

Food and Beverage Vending Machine Market - Forecasts from 2024 to 2029

The food and beverage vending machine market is evaluated at US$13,154.431 million for the year 2022 growing at a CAGR of 9.16% reaching the market size of US$24,287.777 million by the year 2029.

Vending machine demand has grown as fast food and beverage businesses have become more profit-driven, cutting out middlemen and investing less in unprofitable locations while striving for prime locations. The market growth has mostly been driven by the tremendous rise of the food and beverage industry over the past decade, particularly in terms of ready-to-drink bottled beverages. For instance, Coca-Cola revealed in March 2021 that a vending machine market share showed positive growth.

Furthermore, food & beverage vending machines are becoming increasingly prevalent in places like corporate offices, hotels, colleges and universities, airports, train or metro stations, and fast-service restaurants. Additionally, end users are becoming more accustomed to instant service and innovations like cashless payment methods using smartphones. For instance, a new smart ice cream vending machine debuted in the UK retailer Co-op's Bridge Road location in London in May 2021. Customers must tap their phones on the vending machines' NFC tag to purchase ice cream products. Following that, customers are prompted to verify their preferred payment options, namely Apple Pay and Google Pay. Additionally, companies are putting more of an emphasis on healthy vending as a way to advance their aim of promoting sustainable convenience and deliberate eating by forming strategic alliances. Such developments coupled with technological advancements will further propel the market in the coming years. For instance, Locali, a pioneering, health-conscious quick service restaurant (QSR) company with headquarters in Los Angeles, announced the start of its vending machine program, which would provide organic, natural, and Locali-branded goods to a variety of communities around the country.

MARKET DRIVERS:

The rising end-user industry is anticipated to propel the market.

The food and beverage vending machines market is greatly impacted by the growing end-user sector, which pushes up demand and modifies market dynamics. As several industries, including corporate offices, educational institutions, healthcare facilities, and transportation hubs, increase, so does the demand for portable, anytime refreshments. To satisfy the rapid and varied snacking needs of an expanding worker and student population, vending machines have become indispensable tools. The market for food and beverage vending machines sees a spike in installations and customization as operators attempt to meet the particular needs of various sectors. Additionally, the need for a range of food alternatives and the increasing emphasis on leading healthy lives are driving advancements in vending machines.
Advancement in technology used in vending machines.

The food and beverage vending machine sector has undergone a revolution because of technological improvements that have improved customer experience and operational efficiency. As more and more transactions become cashless, mobile payment choices and credit/debit card scanners have become essential components of cashless payment systems. With the introduction of smart vending machines, which are driven by IoT technology, operators can optimize restocking and maintenance procedures by having real-time access to inventory levels and machine health data. Traditional buttons have been replaced with touchscreen interfaces, which offer a more engaging and user-friendly interface. Furthermore, predictive analytics for inventory management and customer preferences are made possible by the combination of artificial intelligence (AI) and machine learning, guaranteeing that machines are stocked with in-demand goods.

The FDA has adopted two regulations mandating chain restaurants, comparable retail food outlets, and vending machines to display calorie information on their menus and menu boards. Moreover, a third of American calorie consumption is consumed outside the home. As a result of all these factors, leading manufacturers are setting the pace by trying cutting-edge technology including mobile payments, contactless cards, digital signage, and user interaction.

North America is anticipated to be the major regional market.

Based on geography, the food and beverage vending machine market is divided into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. The demand for food and beverages has shown a significant increase USA over the years owing to rapid urbanization and growing disposable incomes. The country is also witnessing an increase in the establishments of major stores and fitness clubs where food and beverage vending machines hold a wider scope of usage. For instance, according to the National Retail Federation, in 2021, the number of new retail stores in the USA stood at 8,100 which showed a significant increase of 70% over the last three years. Food and beverage vending machines are used in retail stores for various snacks, juices, and non-alcoholic beverages, whereas in fitness clubs the machines are used for energy & soft drinks along with protein bars. Owing to such growing establishments of major spaces in the USA where food and beverage machines have high applicability, their demand is also projected to increase during the forecast period thereby giving a major boost to their market in the USA.

Key Developments:

In March 2023, refillable vending machines for Koko Krunch and Milo were tested by Nestlé as part of their quest to find creative ways to reduce the need for single-use packaging. The cutting-edge devices, developed in association with the Indonesian start-up Qyos by Algramo, were offered for trial for four to six months at two regional Indonesian merchants.

Segmentation:

By Type
Snacks Vending Machine
Beverage Vending Machine
Others
By End User
Corporate
Public Infrastructure
Retailer
Others
By Geography
North America
USA
Canada
México
South America
Brazil
Argentina
Others
Europe
U.K.
Germany
France
Others
Middle East and Africa
UAE
South Africa
Israel
Saudi Arabia
Others
Asia-Pacific
China
Japan
India
Australia
Taiwan
South Korea
Others