Vending is set to see stable, although slow current value growth over the forecast period in the US. Convenience will drive growth, enabled by contactless payment systems and IoT advances, which make it easier to manage inventory levels.
In early 2024, Ulta piloted a smart vending machine concept which allows its loyalty members to access free sample products once a week. The retailer partnered with vending machine innovator SOS, a female-founded company whose initial focus was placing vending machines in sports arenas, traditionally male-dominated spaces, to dispense product samples focused on health and wellness, and mostly targeted towards women.
Getting creative with food options in vending is a growth opportunity for the channel, if the consumer association of vending with choices lacking in flavour and/or nutritional value can be overcome. IoT developments already enable better inventory management and refrigeration oversight, which is especially critical for vending machine operators such as Farmers’ Fridge, which is focused on fresher food options.
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Vending (automatic merchandising) is the sale of products at an unattended point of sale through a machine operated by introducing coins, bank notes, payment cards, tokens or other means of cashless payment. Sales figures cover vended products only (i.e. food, drink and other consumable goods such as vended tobacco, sanitary products and condoms). Services such as the public telephone, launderette facilities, travel tickets, stamps, passport photographs, domestic energy supplies and business card creation are excluded. Coverage includes vending systems installed in public and semi-captive environments only. Hotels, transport networks, recreational centres, shopping centres/malls are included. Factories, offices, hospitals, prisons, schools and other captive environments are excluded.
See all of our definitionsThis report originates from Passport, our Vending research and analysis database.
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