San Jose, CA (Vocus) September 15, 2010
In the current era of convenience and instant gratification, effective elimination of the need to stand in long checkout lines at supermarkets and convenience stores, is driving growth of the vending industry. The last decade witnessed dramatic evolution of the vending industry. Growing from the confines of dispensing convenience foods & beverages to consumers on the go, this ultimate self-service vehicle is today used in retailing a wider range of products, such as, fresh flowers, cameras, audio books, DVDs/CDs, video games and music, among others. Technology advancements have made vending services more cutting-edge, offering compelling benefits to modern time-pressed consumers. Technology innovations have also helped change consumer perception of vended products, infusing greater trust in the reliability of the machines, and in the quality of both the service rendered and in the products vended. Cashless, remote-monitoring machines represent a noteworthy innovation that allows consumers the unrivalled convenience of using credit and debit cards for payment. Growing levels of sophistication in equipment engineering has helped develop multi-functional vending machines capable of operating at multiple temperatures. This allows for simultaneously vending assorted products that require different storage temperatures.
From providing multiple payment options to easy-to-use menus, these machines have made shopping faster, easier, and more reliable. The Internet additionally has helped support growth of the vending industry with Internet kiosks opening up additional avenues for growth. Retailing of Internet access services such as, web surfing, e-mail, video e-mail, games, and online bill payment are growing in popularity with customers, such as business travelers, demanding on-the-go connectivity to the world-wide-web. Vending of services, such as, movie tickets, and pre-paid mobile recharge cards, although currently a fledging concept is expected to gain momentum in the upcoming years.
Vending machines industry has weathered the recession better than several other businesses for a host of reasons. The impact of recession has been fairly minimized by the industrys diversity in the product mix vended. Additionally, encouraging growth in developing Asian markets has helped cushion the recession blow. The recession interestingly has spurred certain factors in favor of driving up the business case for vending machines. For instance, frugal consumer purchasing behavior has encouraged the use of vending machine cafes, which help cash strapped consumers save on service charges paid to the waiter. Traditional retail outlets like c-stores are exhibiting willingness to purchase and install vending machines as part of their strategies to prune costs, as these machines help reduce sales staff and the expenses incurred on their maintenance.
While a medley of all of these factors has featured in cushioning the industrys decline, several other factors have aided in the deterioration of the industrys business variables. Revenues for products sold through vending machines in the year 2008 & 2009 was particularly subdued as demand in key sectors such as manufacturing, financial institutions and banks, was affected by company closures, and staff downsizing. Consumer disposal incomes remained constrained and so were profit margins of industry’s mainstay, cold beverages. With vending being mostly a work-place service, rising rates of unemployment sharpened the blow, followed by decline in purchase frequencies and quantities. Legislative changes additionally exerted pressure on certain categories of products dispensed through vending machines like cigarettes, alcoholic beverages, snacks and confectionery. Sales of cigarette vending machines especially have and will continue to feel the hardest blow with governments in most countries banning smoking in public places.
As stated by the new market research report on vending machines, Japan and the US, together accounts for 50% of the global installed base. Global annual sales of products through vending machines are expected to reach US$ 192.9 billion by 2015. In United States, market for beverages sold through vending machines is expected to reach US$ 38.93 billion by 2015.
Leading players profiled in the report include American Vending Machines, Inc., Azkoyen SA, Crane Merchandising Systems, Dixie-Narco, Inc., Fuji Electric Retail Systems Co., Ltd., Glory Ltd., GTECH, Maas International, Royal Vendors, Sanden Corp., Tomra Systems ASA, and Westomatic Vending Services Ltd.
The research report titled Vending Machines: A Global Strategic Business Report announced by Global Industry Analysts, Inc. provides a comprehensive review of market trends, drivers, issues, profiles of major players, product developments and other strategic industry activities. Product sales through vending machines, such as, beverages, food, cigarettes, and other products & services, are analyzed in US$ Million by geographic regions including the United States, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America. The installed base of vending machines, such as, beverage vending machines, food vending machines, cigarette vending machines, and other vending machines, is analyzed in thousand units across geographic regions including United States, Canada, Japan, Europe, and Rest of World.
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About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the worlds largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
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