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Vending in Russia

Russia vending market: 5% CAGR growth forecast between 2012-17


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2014-02-14 03:39:02 - Vending in Russia - a new market research report on companiesandmarkets.com

Vending in Russia is highly fragmented. 40% vending operators are small enterprises or private entrepreneurs. There are no strong leaders in the market and there is still an absence of united system of vending industry operation across the country. Each city has its own providers of vending services. However, to enter the vending market profitably players must launch no less than 10 machines according to data by IC Finam. Margins are usually at 15-20% on average, which makes vending attractive for potential investors.

Vending in Russia traditionally performed poorly across the country in 2012. The most demanded product in vending machines remained hot drinks, predominantly different types of coffee. Due to the climate, hot drinks were highly demanded in Russia and

 

 

vending coffee machines were seen in airports, railway stations and offices. Other types of vending sales were mostly substituted by small kiosks and corner shops as Russians still preferred face-to-face trade rather than automatic purchases. Overall, vending remained a relatively new distribution channel with moderate customer loyalty.

Due to its low development vending is supposed to be one of the fastest-growing retail distribution channels over the forecast period with 5% constant value CAGR.

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