North America and Europe Vending Machine Market Size

North America & Europe Vending Machine Market Analysis

The North America and Europe Vending Machine Market size is estimated at USD 14.10 billion in 2024, and is expected to reach USD 21.66 billion by 2029, growing at a CAGR of 8.97% during the forecast period (2024-2029).

The ease of access to products catering to the rising population is significantly driving the growth of the studied market.

• According to Census.gov, estimates of retail and foodservice sales in the United States for December 2021, adjusted for seasonality, USD 626.8 billion was spent on variations, holidays, and trading days, but not on pricing modifications, a drop of 1.9% (0.5%) from the previous month, but an increase of 16.9% (0.9% ) from the previous year. The deadline is December 2020. Total sales for the first twelve months of 2021 were up 19.3% (0.5%) over the same period in 2020. Total sales increased 17.1% (0.7%) from October 2021 to December 2021 compared to a year ago. Such spending on food is likely to significantly drive the studied market.
• Vending machine products with diverse characteristics are being introduced by specialty retailers, attracting customers and moving the market forward. Furthermore, the specialty retail business is expected to have erratic growth due to macroeconomic variables such as consumer spending and increasing disposable income. When buying products at convenience stores, customers are more concerned with the complete shopping experience. Vending machine product sales are predicted to increase due to attractive displays and affordable prices in retail outlets. As a result, the widespread creation of convenience stores creates the profitable potential for the growth of the offline sales channel in the market.
• One of the key factors contributing to the market's favorable outlook is significant growth in the retail industry around the world. Furthermore, the growing need for automated product distribution systems in airports, hospitals, school canteens, railway and gasoline stations, and industrial sites is propelling the industry forward. For instance, as of January 2022, Farmer's Fridge, a Chicago-based company, installed 178 machines vending salads, bowls other healthier fare in hospitals and airports. It has 118 machines in hospitals and 60 in airports. Still, one would think salads and vending machines mixes like oil and water. However, Farmer's Fridge monitors the temperature of items and locks food that is past its prime. It also monitors sales and collects customer feedback. Resultantly, the company minimizes food waste by adjusting its stocking algorithms. Further, the company's items are cheaper than their airport and hospital cafeteria counterparts. Most meals cost USD 10 or less.
• Other growth-inducing elements include technology improvements such as the creation of reverse vending machines (RVM). In exchange for a reward, customers can insert old or empty plastic containers and aluminum cans into these machines. Manufacturers are also releasing new models with touch-screen panels, gesture-, video-, audio-, and scent-based interactions, as well as cashless payment capabilities. In accordance with this, self-service technology's widespread acceptance across industries also boosts the market.
• Moreover, in a world increasingly technological and characterized by investment in smart cities, artificial intelligence, and home delivery through orders made by mobile devices, many companies install vending machines to improve the customer experience and their interactions. For instance, various governments in the American region are also promoting the adoption of smart cities. For instance, Las Vegas is testing three pilot projects, with the government allocating USD 500 million to find ways to connect the entire city by 2025.
• The pandemic has also increased the self-checkout during the pandemic, resulting in the demand for vending machines. According to a Shekel BrainweighLtd poll, 87 % prefer to purchase in stores that offer touchless or robust self-checkout options. According to a poll conducted in the United States, more than two-thirds of consumers now use self-checkout, touchless self-checkout, or frictionless micro-markets to pay for groceries.