Japan Vending Machine Market 2022-2028 2.0

Japan Vending Machine Market 2022-2028 2.0

Japan vending machine market was valued at $993 million in 2021 and is anticipated to reach nearly $1.3 billion by 2028 at a CAGR of 4.7%. Vending machines have become a mainstay in Japanese life owing to their ability to serve an amazing array of consumer items 24/7. The easy access of consumer products to the corporate employees, students, travelers, and ordinary citizens that want and need consumable products at reasonable prices is a key factor promoting Japan vending machine market growth. Low crime rate across the country creates a good environment for the growth and establishment of vending machine industry in Japan. Unlike most parts of the world where vending machines are often broken into, Japan has nearly a crime-free market for vending machine owners. Therefore, it is easy to install the machines in different places around cities without the worry of theft. Being a cash-based country is another motivator for country’s vending machine industry. Japan has a large volume of coinage in circulation, thereby making it easier for people to buy items from vending machines.

The number of vending machines in Japan peaked at 5.6 million in 2000, according to the Japan Vending System Manufacturers Association, one for every 23 people. This figure fell to just above 4 million in 2021. The COVID-19 pandemic has stimulated a renewed interest in vending after the closure of many traditional retail establishments. Kenmin Foods, a Kobe based rice noodle maker, installed a vending machine in front of its building in September 2021 and generated $0.2 million revenue, three times its target. In the same period, a Hokkaido seafood seller vended fresh mackerel and fresh salmon after many regular clients closed due to COVID-19 spread. Three companies in Nagoya joined forces to sell food items nearing expiration dates from vending machines at up to 50.0% discount.

Japan vending machine has been segmented into type, product, application, and category. Based on type, the market has been segmented into traditional vending machines and macro market. The traditional vending machine market held major market share of 84.3% in 2021. The traditional vending machine market was valued at $858 million in 2021 and is anticipated to reach nearly $1.1 billion by 2028; at a CAGR of 4.6%. The high presence of traditional vending machines across the streets of Japan is a key factor driving the growth of this market segment.

Based on product, the market is segmented into food & snacks, beverages, and others. Beverages segment held major market share of 83.7% in 2021. The market was valued at $852 million in 2021 which is anticipated to reach nearly $1.1 billion by 2028. The beverages segment is further sub-segmented into tea, coffee, soft drinks, and others. Soft drinks held major market share of 78.7% in beverages segment. The high intake of soft drinks across hot cities across the country is a key contributor to the high share of the market segment.

Based on category, the market is segmented into premium vending machines and non-premium vending machines. Non-premium category held major market share of 71.4% in 2021. The market was valued at $727 million in 2021, and is anticipated to reach $897 million by 2028; at a CAGR of 4.2%.

The key players of the Japan vending machines market include Asahi Group Holdings, Ltd., Suntory Holdings Ltd., Sanden Holdings CORP., Fuji Electric Co., Ltd., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers, and acquisitions, collaborations, and new product launch, to stay competitive in the market. For instance, in March 2021, SANDEN Holdings Co. signed an agreement with Hisense Home Appliances Group Co., Ltd. which is a Chinese electronic manufacturer group that develops, manufactures, and sells various electronic information equipment and home appliances such as vending machines.