Insight:
- The vending machines market is expanding with many types and various products.
- Schools, universities, airports, and train stations are the potential places for vending machines.
Many shopping methods have increased and boosted the new technology in recent years. The vending machine is one of the latest technologies for buying products; it helps consumers have more convenience in purchasing something. From that, the global vending machine market has an impressive increase.
In 2023 the vending machine market was valued at approximately $22 billion. The expert forecast that this market will grow at a CAGR of 9% in the period 2023-2030. They also projected the market size will reach $40 billion by the decade’s end.
The market trends in the future
Many factors contribute to this impressive growth. One of the highlights is the rising consumer demand. They want to shop quickly and conveniently, especially in urban areas. In their busy life, consumers value speed and convenience (getting products and paying fast), which vending machines readily provide.
After the Covid-19 pandemic, the requirement for contactless shopping has grown. This leads to the demand for using high-tech and touchless vending machines. Another important factor is the development of technology, such as the Internet of Things (IoT) and artificial intelligence (AI). With its update, smart vending machines can monitor inventory, be flexible to change the price and recommend products based on customer preferences are becoming more popular.
The last factor we can see that the changing of consumer behavior. More people enjoy cashless payments such as mobile wallets and credit cards. This makes vending machines more accessible to consumers, leading to market growth.
The vending machine industry target audience
Nowadays, the vending machine industry has a wide range of consumers of all ages. They have a behavior of using quick snacks, convenient meal or drink options. However, the primary target audience can be segmented into distinct groups:
- Urban consumer: urban dwellers are often on the go and find convenient options, and easy to buy for food and drink products. Even non-food products like electronics and beauty products. Vending machines, especially in transport hubs, office buildings, and shopping malls, cater to this need for speed and convenience.
- Student, school, and education places: Schools, colleges, and universities are huge markets for vending machines, especially those offering healthy snacks, drinks, and fast meals. Students are interested in quickly grabbing something nutritious or filing between classes without requiring lengthy food preparation.
- Office workers: in a business apartment, the vending machine is a great choice for buying snacks, coffee, and meals during a busy working day. Some office canteens also have vending machines to supplement employee dining options.
- Travelers and commuters: Airports, bus terminals, train stations, and public places are ideal locations for vending machines. Travelers often buy quick snacks or drinks which affordable at their rest stops. Machines in this location usually cater to products that suit the target audience’s needs. They can be bottles of water, sandwiches, and travel-sized toiletries.
- Healthy people: Global consumers are focused on health and wellness. Understand this demand; many vending machines provide more nutritious snacks. In vending machines, consumers can find options such as fresh fruit, yogurt, protein bars, and sugar-free food. It makes them more attractive to those who like fitness and well-being.
- Technophiles: beyond food and drink, vending machines in some countries are also designed to sell gadgets, electronics, and tech accessories, appealing to consumers who love technology. This type of vending machine is usually placed in airports, shopping malls, and tourist destinations.
- Retailers and small businesses: the vending machine also serves another audience segment: retailers and small businesses. They invest in vending machines as a passive income. These machines do not require regular maintenance, combined with their ability to generate steady cash flow, making them an attractive option for business.
The market segmentation
The vending machine market is highly segmented by product, technology, and location. Businesses can leverage these segments to understand consumers’ demand and update their products.
First is segmented by product type; the vending machine market is separated into food & drink, non-food products, and healthy options. The most popular vending machine type provides food and beverages; this segment has expanded significantly. Now, these machines offer more consumables, including fresh meals, energy drinks, organic snacks, and even alcoholic drinks in some markets.
They also provide non-food products like cosmetics, personal care products, and electronics. This type of machine is often placed in airports, shopping malls, and other high-traffic areas. Vending machines also sell healthy options, including salads and low-calorie snacks. Especially in schools, hospitals, and gyms where customers prioritize healthy eating.
The next segment of this market is separated by technology. The most popular type of vending market today is the traditional. These machines accept coins (cash) and give products to customers by simple mechanical systems. Although their usage has decreased cause of the rise of cashless payment, they remain prevalent in some regions.
Smart vending machines with touchscreen, AI, and IoT offer a better experience for customers. It also supports the seller with tracking sales and monitoring stock features. With the increase of mobile payments, vending machines with cashless payment methods are becoming widespread. These machines are particularly popular in urban areas and among young customers.
The last segment is separated by location. There are many potential places for vending machines cause of demand increasing. Commercial spaces such as office buildings, malls, and supermarkets are prime locations. This is the high foot traffic and will attract more customers. The next locations are airports, train stations, and bus terminals. These places have many travelers who need quick, portable meals and drinks. Schools and universities have a wide range of customers.
The challenges of vending machines market
The vending market is also facing many challenges. Finding suitable locations with high foot traffic, security, and access to electricity can be a big challenge. Although machines require regular maintenance can be costly and time-consuming. The owner may have challenges tracking inventory and filling products to avoid stockout and customer dissatisfaction.
Vending machines may have competitors from other selling methods, including convenience stores, mini-markets, and food delivery. This industry is becoming increasingly crowded, leading to price and service competition. Another problem is vending machines can be vandalized in public.
Conclusion
There are many potential for vending machines market. The market boasts a wide range of customers across various ages. It can expand more in the future with a wide array of products. But then, businesses must update and develop technology and product quality to attract customers. Follow the SourceVietnam.com blog for more market information!
