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North America Vending Machine Market Outlook to 2028

Region:North America

Author(s):Shreya

Product Code:KROD4270

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Published On

November 2024

Total pages

81

About the Report

North America Vending Machine Market Overview

The market size for North America vending machines was valued at USD 10.3 billion in 2023. It has experienced significant growth over the past five years, driven by changing consumer preferences and technological advancements. The market's growth can be attributed to the increasing demand for convenient and automated solutions in the retail sector, particularly in urban areas where consumers seek quick and efficient ways to purchase products.North America Vending Machine Market Size


Prominent players in the North America vending machine market include Crane Merchandising Systems, Canteen Vending Services, Selecta Group, PepsiCo, and Azkoyen Group. These companies are leading the market with their extensive product portfolios, strong distribution networks, and continuous innovation in vending machine technology.


In 2023, PepsiCo launched its latest AI-powered vending machines, which use facial recognition and machine learning to customize product offerings based on consumer preferences. This innovation has positioned PepsiCo as a pioneer in the integration of advanced technologies within the vending machine industry, further driving market growth.

California is the dominant region in the North America vending machine market. The state's large population, coupled with its high urbanization rate of 94%, has contributed to the widespread adoption of vending machines. Additionally, the presence of tech-savvy consumers and a strong focus on health and wellness trends have driven the demand for innovative vending machine solutions in the state.

North America Vending Machine Market Segmentation

By Product Type: The North America vending machine market is segmented by product type into beverage vending machines, snack vending machines, and combination vending machines. In 2023, beverage vending machines held a dominant market share. This dominance is due to the high demand for on-the-go beverages such as coffee, soda, and bottled water. The increasing availability of energy drinks and healthier beverage options in vending machines has also contributed to the growth of this segment.North America Vending Machine Market Segmentation by type

By Payment Mode: The market is also segmented by payment mode into cash-based vending machines, cashless vending machines, and mobile payment vending machines. In 2023, cashless vending machines accounted for the largest market share, driven by the growing preference for digital payments. The rise in smartphone usage and the convenience of contactless payments have made cashless vending machines the preferred choice for consumers, particularly in urban areas.North America Vending Machine Market Segmentation by mode

By Region: The North America vending machine market is segmented by region into United States, Canada. In 2023, the West region, led by California, held the largest market share. The region's dominance is attributed to its high urbanization rate, technological advancements, and a strong focus on health-conscious products. The presence of a large number of tech companies in the region has also contributed to the adoption of smart vending machines.

North America Vending Machine Market Competitive Landscape

Company Name

Establishment Year

Headquarters

Crane Merchandising Systems

1893

Stamford, CT

Canteen Vending Services

1929

Charlotte, NC

Selecta Group

1957

Cham, Switzerland

PepsiCo

1965

Purchase, NY

Azkoyen Group

1945

Peralta, Spain

Azkoyens NAMA Certification: At the NAMA One Show, Azkoyen introduced the Vitro X1 coffee machine, which features NSF certification and is designed for high-quality beverage service. This machine is tailored for environments with moderate consumption, such as offices and convenience store This certification ensures compliance with U.S. public health standards, enhancing the credibility of their products in the American market.

Selecta Group's Collaboration with Tech Companies
Selecta Group entered into a strategic collaboration with a leading technology company in 2024 to integrate IoT and AI technologies into its vending machines. North America, aims to enhance operational efficiency and improve customer engagement. This collaboration is expected to drive market growth by leveraging advanced technologies to meet evolving consumer demands.

North America Vending Machine Industry Analysis

Growth Drivers

  • Increasing Cashless Payments Adoption: The adoption of cashless payments in North America has significantly contributed to the growth of the vending machine market. According to the Federal Reserve, the number of non-cash payments in the U.S. reached 42 billion in 2023, driven by increased consumer preference for debit cards and digital wallets. This trend has directly impacted the vending machine industry, enabling the integration of digital payment systems such as Near Field Communication (NFC) and QR code-based transactions in machines.
  • Rising Demand for Snacks and Beverages On-the-Go: The demand for convenience foods, such as snacks and beverages, has increased in North America, with the U.S. Department of Agriculture (USDA) reporting that the average American consumed 850 pounds of processed foods in 2023. This shift towards on-the-go consumption is driven by urbanization and busy lifestyles, leading to a surge in demand for vending machines that provide quick and accessible food options. Vending machines in office buildings, educational institutions, and public transit hubs have seen higher usage, as consumers seek time-efficient food solutions.
  • Technological Advancements: Technological advancements such as smart vending machines and IoT integration have transformed the vending machine market. By 2023, there were over 1.2 million IoT-enabled vending machines in North America, as reported by the National Telecommunications and Information Administration (NTIA). These machines allow for real-time inventory management, remote diagnostics, and predictive maintenance, enhancing operational efficiency and reducing downtime. Additionally, these technologies facilitate personalized promotions through customer data analysis, driving repeat sales and customer engagement.

Market Challenges

  • High Maintenance Costs: The vending machine market in North America faces challenges due to high maintenance costs. A report from the Bureau of Labor Statistics (BLS) indicates that the average annual expenditure on maintenance and repair for commercial equipment, including vending machines, was approximately $22,000 per machine in 2023. This figure covers costs associated with parts replacement, software updates, and regular servicing. Additionally, maintaining advanced features like IoT integration and cashless payment systems further increases operational expenses. These costs can deter smaller operators from expanding their vending machine networks.
  • Vandalism and Theft: Vandalism and theft remain persistent challenges for vending machine operators in North America. According to data from the National Crime Prevention Council (NCPC), incidents of theft and vandalism targeting vending machines increased by 12% between 2022 and 2023. This rise is particularly prevalent in urban areas and locations with minimal surveillance. Vandalism often leads to machine damage, resulting in costly repairs and temporary loss of revenue. To mitigate these risks, operators must invest in reinforced vending machines and advanced surveillance systems, which further increases capital expenditure.

Government Regulation

  • Payment Security Standards: Vending machine operators in North America must adhere to the Payment Card Industry Data Security Standard (PCI-DSS) to ensure secure transactions. In 2023, the U.S. Department of Commerce reported that over 800,000 vending machines were equipped with card readers, making them subject to these compliance requirements. PCI-DSS compliance is essential to protect consumer data and prevent breaches, but achieving and maintaining compliance can be challenging and costly for operators, requiring regular audits and updates to payment processing systems.
  • Energy Efficiency Standards: Energy efficiency standards have become increasingly important in the vending machine market, with Energy Star certification serving as a key benchmark. In 2023, the U.S. Environmental Protection Agency (EPA) noted that vending machines with Energy Star ratings consume 30% less energy compared to non-certified machines. As of 2024, over 40,000 Energy Star-certified vending machines were in use across North America. Meeting these standards is crucial for operators seeking to reduce energy costs and align with sustainability goals, but upgrading to energy-efficient models requires substantial upfront investment.

North America Vending Machine Market Future Outlook

By 2028, the North America vending machine market is expected to grow exponentially, driven by the increasing adoption of smart vending machines and the growing demand for healthier snack options. The integration of IoT and AI technologies in vending machines is anticipated to enhance user experience, driving further market expansion.

Future Trends

Expansion into Non-Traditional Retail Spaces: The future of the vending machine market will see an expansion into non-traditional retail spaces such as office buildings, healthcare facilities, and gyms. By 2028 vending machines are expected to be installed in these unconventional locations, driven by the growing demand for on-the-go food and beverage options.

Integration of Health and Wellness Features: Vending machines will offer products that meet stringent health and nutrition standards, supported by government regulations and public health initiatives. This trend will be further reinforced by advancements in product formulations and packaging that cater to health-conscious consumers.

Scope of the Report

By Product Type

Beverage Vending Machines

Snack Vending Machines

Combination Vending Machines

By Payment Type

Cash-Based Vending Machines

Cashless Vending Machines

Mobile Payment Vending Machines

By Region

North

South

East

West

Products

Key Target Audience Organizations and Entities Who Can Benefit by Subscribing This Report:

  • Municipal Services
  • Vending Machine Manufacturers
  • Vending Machine Operators
  • Cashless Payment Solution Providers
  • Airports and Transportation Hubs
  • Investors and VC Firms
  • Banking and Financial Institutions
  • U.S. Department of Agriculture (USDA)
  • Centers for Disease Control and Prevention (CDC)

 

Time Period Captured in the Report:

  • Historical Period: 2018-2023
  • Base Year: 2023
  • Forecast Period: 2023-2028

Companies

Players Mentioned in the Report:

  • Crane Merchandising Systems
  • Canteen Vending Services
  • Selecta Group
  • PepsiCo
  • Azkoyen Group
  • American Vending Machines
  • Aramark
  • Bianchi Vending Group
  • Coca-Cola Vending Services
  • FAS International
  • Fuji Electric Co., Ltd.
  • N&W Global Vending
  • Royal Vendors
  • SandenVendo America, Inc.
  • Westomatic Vending Services Ltd

Table of Contents

North America Vending Machine Market Overview

1.1. Definition and Scope

1.2. Market Taxonomy

1.3. Market Growth Rate

1.4. Market Segmentation Overview

North America Vending Machine Market Size (in USD Bn), 2018-2023

2.1. Historical Market Size

2.2. Year-on-Year Growth Analysis

2.3. Key Market Developments and Milestones

North America Vending Machine Market Analysis

3.1. Growth Drivers

3.1.1. Increasing Demand for Cashless Payment Systems

3.1.2. Rising Health and Wellness Consciousness

3.1.3. Expansion into Unconventional Locations

3.1.4. Technological Advancements and Smart Vending Machines

3.2. Restraints

3.2.1. Rising Operational and Maintenance Costs

3.2.2. Supply Chain Disruptions

3.2.3. Regulatory Compliance Challenges

3.2.4. Consumer Shift Towards Online Shopping

3.3. Opportunities

3.3.1. Expansion into Non-Traditional Retail Spaces

3.3.2. Adoption of Sustainable Vending Solutions

3.3.3. Integration of Health and Wellness Features

3.3.4. Growth in Cashless and Mobile Payments

3.4. Trends

3.4.1. Increased Adoption of Smart Vending Machines

3.4.2. Expansion into Non-Traditional Retail Spaces

3.4.3. Integration of Health and Wellness Features

3.4.4. Growth in Cashless and Mobile Payments

3.5. Government Regulation

3.5.1. Healthy Food Financing Initiative (HFFI)

3.5.2. Federal Tax Incentives for Energy-Efficient Vending Machines

3.5.3. School Nutrition Standards and Vending Machine Regulations

3.5.4. Public Health Campaigns Promoting Healthy Snacking

3.6. SWOT Analysis

3.7. Stake Ecosystem

3.8. Competition Ecosystem

North America Vending Machine Market Segmentation, 2023

4.1. By Product Type (in Value %)

4.1.1. Beverage Vending Machines

4.1.2. Snack Vending Machines

4.1.3. Combination Vending Machines

4.2. By Payment Mode (in Value %)

4.2.1. Cashless Vending Machines

4.2.2. Cash-Based Vending Machines

4.2.3. Mobile Payment Vending Machines

4.3. By Region (in Value %)

4.3.1. North

4.3.2. South

4.3.3. East

4.3.4. West

North America Vending Machine Market Cross Comparison

5.1 Detailed Profiles of Major Companies

5.1.1. Crane Merchandising Systems

5.1.2. Canteen Vending Services

5.1.3. Selecta Group

5.1.4. PepsiCo

5.1.5. Azkoyen Group

5.2 Cross Comparison Parameters (No. of Employees, Headquarters, Inception Year, Revenue)

North America Vending Machine Market Competitive Landscape

6.1. Market Share Analysis

6.2. Strategic Initiatives

6.3. Mergers and Acquisitions

6.4. Investment Analysis

6.4.1. Venture Capital Funding

6.4.2. Government Grants

6.4.3. Private Equity Investments

North America Vending Machine Market Regulatory Framework

7.1. Healthy Vending Regulations

7.2. Compliance Requirements for Nutritional Standards

7.3. Certification Processes for Smart Vending Machines

North America Vending Machine Market Future Size (in USD Bn), 2023-2028

8.1. Future Market Size Projections

8.2. Key Factors Driving Future Market Growth

North America Vending Machine Market Future Segmentation, 2028

9.1. By Product Type (in Value %)

9.2. By Payment Mode (in Value %)

9.3. By Region (in Value %)

North America Vending Machine Market Analysts Recommendations

10.1. TAM/SAM/SOM Analysis

10.2. Customer Cohort Analysis

10.3. Marketing Initiatives

10.4. White Space Opportunity Analysis

Disclaimer

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Research Methodology

 

Step: 1 Identifying Key Variables:

Ecosystem creation for all the major entities and referring to multiple secondary and proprietary databases to perform desk research around market to collate industry level information.

Step: 2 Market Building:

Collating statistics on in the North America vending machine market over the years, penetration of marketplaces and service providers ratio to compute revenue generated for in the North America vending machine market. We will also review service quality statistics to understand revenue generated which can ensure accuracy behind the data points shared.

Step: 3 Validating and Finalizing:

Building market hypothesis and conducting CATIs with industry experts belonging to different companies to validate statistics and seek operational and financial information from company representatives.

Step: 4 Research Output:

Our team will approach multiple in the vending machine suppliers and distributors companies and understand nature of product segments and sales, consumer preference and other parameters, which will support us validate statistics derived through bottom to top approach from vending machine manufacturers.

Frequently Asked Questions

How big is the North America Vending Machine Market?

The North America vending machine market, valued at USD 10.3 billion in 2023, is driven by the increasing demand for cashless payment options, the expansion of vending machines into unconventional locations, and the rising consumer awareness around health and wellness.

What are the challenges in the North America Vending Machine Market?

Challenges in the North America vending machine market include rising operational and maintenance costs, supply chain disruptions affecting product availability, regulatory compliance related to health standards, and the consumer shift towards online shopping which is reducing foot traffic in traditional vending machine locations.

Who are the major players in the North America Vending Machine Market?

Key players in the North America vending machine market include Crane Merchandising Systems, Canteen Vending Services, Selecta Group, PepsiCo, and Azkoyen Group. These companies lead the market with their extensive product offerings, strong distribution networks, and continuous technological innovations.

What are the growth drivers of the North America Vending Machine Market?

The market in the North America vending machine market is propelled by the increasing adoption of cashless payment systems, rising health and wellness consciousness among consumers, the expansion of vending machines into high-traffic and unconventional locations, and advancements in smart vending machine technology.

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