Europe Vending Machine Market Size, Share & Trends Analysis Report By Type (Smart, Traditional), By Application (Commercial Places, Offices), By Payment Mode, By Country, And Segment Forecasts, 2021 - 2028

Report Overview

The Europe vending machine market size was valued at USD 13.71 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 8.9% from 2021 to 2028. Increasing demand for on-the-go snacks and beverages due to the hectic lifestyles of consumers is boosting the demand for vending machines. The continuous rise in the number of coffee consumers in the region is also estimated to drive market growth. The growing preference for coffee and the expansion of the corporate sector across European countries are further expected to drive the product demand. According to the European Vending & Coffee Service Association (EVA), a majority of vending machines in the region serve hot drinks, such as coffee, while the remaining vend anything from sandwiches and cold drinks to hot meals and snacks.

These machines can be easily found everywhere as they are a convenient point of sale, equivalent in size to a shop of 1 square meter. Although most machines are located in companies and offices, the rest are placed in various public locations like bus stations, airports, gas stations, train stations, and public libraries. In recent years, hot beverage machines have shifted to bean-to-cup espresso machines, offering high-quality and specialty coffees.

In Europe, there is a strong demand for both coffee capsules and coffee beans, while the demand for filter coffee is rapidly decreasing. The consumption of coffee in offices across the U.K. has shown strong growth in recent years. As per the blog published by TopBrewer in 2019, over the last 3 years, the value of office coffee consumption in Europe has increased on average by more than 6% per year. This trend is foreseen to remain prevalent in the coming years. Among other European countries, some show a very high increase in the consumption of coffee in offices. This trend is particularly strong in Northern Europe and some Eastern European countries, such as Poland and the Czech Republic. These factors are projected to drive the growth of the market in the coming years.

Moreover, customers that buy from vending machines are making healthier choices and as a result, industry operators are stocking healthy food & beverage items in their vending machines to meet consumer needs. Many operators are also extending their offerings to include a number of cooked foods that customers would usually have to go to restaurants for. Healthy snack options at vending machines include categories like fruits, seeds, and nuts. Cookies, crackers, nutritional bars, chips & pretzels, and cereal & granola bars are also available.

Furthermore, the coronavirus pandemic has unfavorably influenced the consumer goods industry with lockdowns having an impact across the supply chain. The impact on food and beverage companies will likely be complex, influencing both, the demand and supply. In contrast, a change in consumer behavior has been observed, generating demand for various consumer goods, wherein several consumers have switched between brands. Simultaneously, manufactures are deciding on how to handle potential disruption across the supply chain and are identifying areas to improve and meet the changing demands. Operators in this market have witnessed the impact and a fall in revenue, especially in April 2020 as compared to 2019.

Type Insights

The smart product type segment is expected to grow at the fastest CAGR of 10.8% from 2021 to 2028 due to a rise in the development of energy-efficient solutions that will help companies to reduce their carbon footprint. Major players operating in the intelligent vending machines market are developing eco-friendly and recyclable systems to provide sustainable technologies for reducing adverse environmental impacts. Cloud-based Vending Management Systems (VMS) are gaining popularity among operators.

These systems provide services, such as cash accountability, warehouse management, alerts, real-time data, pre-kitting, merchandising and optimization options, and report generation. VMS offers remote access to machines and real-time data. Although the adoption of VMS is notably higher among large- and medium-sized operators, the trend has been gaining traction among small-scale operators too. Operators can purchase or use the service by paying a small monthly fee, which allows small-scale operators to avail these services. Furthermore, in terms of value, pots and pans material dominated the market.

The nature of snacking is evolving rapidly, as consumers are becoming increasingly health-conscious. According to Vending People, zero-sugar drinks are the most popular drink options in offices. In 2019, the traditional vending machine segment recorded an increase of 30.3% in sales. In addition, cans were found to be slightly more popular than bottles. Furthermore, the same source highlighted the growth of 169% in the sale of low-calorie snacks in comparison to other options in 2019, indicating a stark increase in healthier choices within the past year. These factors lead to an increase in product demand.

Payment Mode Insights

The cashless payment segment is estimated to register the fastest CAGR of 10.2% from 2021 to 2028. This rise of cashless payments in vending machines is offering significant opportunities for operators to switch to cashless payment modes. This will enable them to expand their customer base. In Europe, consumer behavior is changing more rapidly than ever. According to the European Central Bank, the number of EU non-cash payments increased by 7.9% from 2016 to 2017. As fewer people and businesses use cash in their daily transactions, the cash-based infrastructure has become less affordable to maintain. This has resulted in a wide-scale switch to digital transactions.

Moreover, cashless payments not only offer customers convenience but also offer logistical solutions. Handling cash in vending machines is a costly process for operators, in terms of time spent collecting and counting money and losses incurred through vandalism and theft. With the availability and integration of more flexible payment options, such as bank cards and mobile payment options, the preference for cashless transactions is likely to increase in the coming years.

The cash payment segment led the market in 2020 and is estimated to grow at a steady CAGR from 2021 to 2028 as cash is still the predominant method of payment in most European countries, though its proportion among retail payments is falling. According to the European Central Bank, in 2019, 137.6-billion-euro coins were used by 342.7 million users in the eurozone. In a survey, it was found that not all vending machines have the technology to accept cashless payments. The cashless terminal, its cellular connection for processing, and each cashless transaction, all cost the operators money, due to which many small-scale operators are forced to use cash payment mode in their systems.

Application Insights

The office application segment accounted for the largest revenue share of more than 67% in 2020. Office vending machines are a low-maintenance and convenient way to offer fresh food, snacks, and beverages and eliminate the need for staff that would otherwise be required for a canteen. Adding a vending machine to an office does have immediate and obvious benefits, such as added convenience and low overheads. Along with this, a vending machine can help motivate staff with fresh food options and positively affect their efficiency. Health-conscious employees usually want to grab quick bites, which is also driving the product demand in offices.

The commercial places segment is estimated to register the fastest CAGR from 2021 to 2028. Vending machines at commercial places help consumers conveniently access their favorite products. Moreover, retailers are offering a wide array of merchandise through automated retail technology. These innovations have arrived in a broad range of spaces, including supermarkets, hypermarkets, convenience stores, restaurants, and cafes. The retail industry has been struggling heavily because of the global pandemic leading to a surge of activity in the cashless or automated retail space.

Country Insights

Italy accounted for the maximum revenue share of more than 17% in 2020. It is the leading country in terms of the number of vending machines installed. Moreover, constant innovation in terms of technology and design also supports market growth. According to Confida, coffee is the top-selling product from vending machines. In addition, the growing preference for high-quality coffee through vending machines that grind the beans and provide freshly ground coffee upon payment will boost the market growth. Furthermore, in Italy, an increasing number of vending machines are being deployed in commercial places.

A large number of consumers can be seen shopping for their pantry refills and weekly groceries from these vending machines. These machines sell a wide variety of products, which range from loaves of pre-packaged bread to fruit juices, chocolate bars, and packs of sliced salami. France is projected to register a significant CAGR of 8.7% from 2021 to 2028 due to a rise in the number of people adopting vending machines, especially in the fresh food sector of the country. These machines have various advantages, such as they offer hot food at all times and the food is contactless, which solves the issue of hygiene. With the rising popularity of vending machines for fresh and hot food, their demand in commercial and public places, such as banks, offices, commercial buildings, schools, colleges, and even subways, is gradually rising.

Key Companies & Market Share Insights

The market is characterized by the presence of various well-established and several small- and medium-sized players. The COVID-19 pandemic hampered the growth and revenue generation of many companies. As a precautionary measure, many companies have started raising funds from various investors to continue their operations. In May 2020, a U.S. buyout group, KKR & Co Inc., started preparing to inject funds into Selecta, a Swiss vending machine company. Selecta was estimated to raise 150-200 million Euros from KKR & Co Inc. in new loans. This is posing a major challenge for well-established players as they are facing difficulties in maintaining profit and remaining operational. Some of the key companies in the Europe vending machine market are:

• Selecta TMP AG

• Delikia Fresh

• Alliance Vending Services

• IVS Iberica

• Costa

• NVCS Ltd.

• Express Vending

• Nayax Ltd.

• Worldline

• ventopay GmbH

• On Track Innovations Ltd.

• CCV Group B.V.

Europe Vending Machine Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the Europe vending machine market report on the basis of type, application, payment mode, and country:

• Type Outlook (Revenue, USD Million, 2016 - 2028)

  • Smart

  • Traditional

• Application Outlook (Revenue, USD Million, 2016 - 2028)

  • Commercial Places

  • Offices

  • Public Places

  • Others

• Payment Mode Outlook (Revenue, USD Million, 2016 - 2028)

  • Cash Payment

  • Cashless Payment

• Country Outlook (Revenue, USD Million, 2016 - 2028)

  • Spain

  • U.K.

  • Italy

  • France