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Vending in the US

United States vending machines market: $4.6 billion industry in 2012

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2014-02-25 20:57:01 - Vending in the US - a new market research report on

The competitive environment for operators in the United States vending machines market in public locations remained extremely fragmented in 2012. According to NAMA, 75% of vending machine operators earn annual revenues of less than US$1 million. While multinational operators Aramark and Sodexho are well known in the vending industry, they operate vending machines in captive locations. These operators continue to avoid public locations due to the smaller size and limited profitability of machines located in hotels, street locations, petrol stations, and other public locations.

Vending sales have also been aided by continued economic recovery in the US. As vended products are typically higher in unit price than comparable products offered in retail outlets, many consumers chose to cut back on vending



purchases with the onset of the economic recession. As a result, vending sales fell by more than 3% in 2008 and by nearly 12% in 2009 as consumers chose to purchase products in retail channels that offered the lowest unit prices. Then, as the economy began to recover in 2010, consumers slowly started to return to vending machines for their convenience. However, despite growing by 3% each year from 2010 to 2012, vending sales remained more than 6% below their pre-recessionary (2007) levels in 2012.

Vending sales in public locations are expected to grow at a CAGR of 2% in constant value terms from 2012 to 2017. Continued economic recovery should leave consumers more willing to pay an added premium for the convenience of vended products, while continued innovation in machine technology should help reinvigorate the channel by appealing to younger consumers.

Key Headlines

- Vending sales in 2012 reach US$4.6 billion, up 3% from 2011
- Vending sales continue to grow as the US economy improves
- By category, packaged food and packaged drinks grows the most in 2012 up 4% but consumer electronics grows the least, falling 24%
- The vending channel remains highly fragmented, with public locations dominated by small, local operators, while captive locations are served by major operators
- Vending sales are expected to grow 9% in constant value terms over the forecast period

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Mike King
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