Snack size: Healthier consumers take a bite out of revenue, mitigating potential revenue gains

The Vending Machine Operators industry has struggled over the past decade.This decline has been primarily caused by decreasing per capita soda consumption and a rise in the healthy eating index. However, the decline was offset slightly by rising per capita disposable income, most notably in 2015 when the industry experienced growth. Additionally, a change in product mix toward healthier snacks, beverages and other food items, along with increasing use of technology, helped companies spur demand from new consumers. These gains were mitigated, however, by increasing competition from external competitors. Over the five years to 2022, industry revenue is estimated to continue declining...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Increasing competition from convenience stores, supermarkets and micro markets will cause industry losses
  • Convenience stores, grocery stores and micro markets pose a direct threat to operators
  • The movie and video game segment is expected to experience increasingly difficult times due to streaming services
  • Industry Report - Industry Investment Chapter

    Companies operating in this industry incur significantly higher labor costs than capital expenditure, displaying a moderate level of capital intensity. The level of capital expenditure is measured in terms of the depreciation of assets. Capital expenditure undertaken by operators in this industry is allocated toward the purchase of vending machines; the modernization of existing vending machines with hardware such as credit card readers or remote monitoring machines; vehicles to attend to vending machines; and the purchase of repair and maintenance equipment, office equipment, computer technology and software. Industry operators are expected to spend $0.24 on capital for every dollar spent on labor in 2017. The level of capital intensity is up from $0.16 in 2012. Inc...purchase to read more.

    Additional Insights for the Vending Machine Operators Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Vending Machine Operators Industry are

  • Having an exclusive sales contract
  • Ability to pass on cost increases
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Per capita soft drink consumption in the Vending Machine Operators industry impact industry performance..

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    What's in this report

    What is the Vending Machine Operators Industry?

    Vending machine operators provide and service automated machines that sell merchandise, primarily snack foods and soft drinks, but also cigarettes, newspapers and other goods. This industry does not include revenue from soft drink producers that operate their own vending machines.

    Industry Products
  • Candy
  • Food
  • Hot beverages
  • Cold beverages
  • Other products
  • Industry Activities
  • Retail sale of soft drinks via vending machines
  • Retail sale of hot drinks such as coffee via vending machines
  • Retail sale of snack food via vending machines
  • Retail sale of ice cream via vending machines
  • Retail sale of fresh food via vending machines
  • Retail sale of cigarettes via vending machines
  • Retail sale of newspapers via vending machines
  • Retail sale of other nonfood items via vending machines
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Per capita soft drink consumption
  • Healthy eating index
  • Per capita tea consumption

  • Current Performance
  • Revenue
  • Rising competition and new challenges
  • Decreasing enterprises and employees
  • Chart: Revenue Growth

  • Industry Outlook
  • Increased focus on technology
  • External competitors and industry landscape
  • Table: Vending Machine Operators Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Vending Machine Operators Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Wholesale Trade
  • Retail Trade
  • Transportation and Warehousing
  • Educational Services
  • Healthcare and Social Assistance
  • Consumers

  • Key Selling Industries
  • Bottled Water Production
  • Candy Production
  • Cigarette & Tobacco Manufacturing
  • Coffee Production
  • Food Service Contractors
  • Ice Cream Production
  • Juice Production
  • Snack Food Production
  • Soda Production

  • Products & Services
  • Cold beverages
  • Candy
  • Food
  • Other products
  • Hot beverages
  • Chart: Vending Machine Operators Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Manufacturing sites and offices
  • Other
  • Schools and colleges
  • Restaurants, bars and clubs
  • Retail sites
  • Hospitals and nursing homes
  • Chart: Major Market Segmentation for the Vending Machine Operators Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesMarketing, depreciation and other
  • Chart: Cost Structure Benchmarking – Sector vs Vending Machine Operators

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Vending Machine Operators Industry

  • Industry Globalization
    Compass Group PLC, Aramark Corporation,
  • Table: Compass Group PLC - financial performance
  • Table: Aramark Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Vending Machine Operators Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Vending Machine Operators Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per capita soft drink consumption (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Convenience Store
  • A small store that sells everyday necessities and discretionary goods like groceries, toiletries and soft drinks.
  • Franchise
  • An agreement where an individual or group markets a company's goods or services within a certain territory or location.
  • Micro Market
  • A self-contained store, often found in offices, that sells food and beverages. Products are displayed in racks and payment is often based on the honor system.
  • Remote Monitoring System
  • Hardware and software that enables companies to monitor their machines sales, inventory levels and operational status.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Vending Machine Operators provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Vending Machine Operators:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Vending Machine Operators market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Vending Machine Operators, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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