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Vending Machines: A Global Strategic Business Report

Global vending machines market to reach 25 million units by 2018

The global installed base for Vending Machines is projected to exceed 25 million units by 2018, driven by demand for healthy vended foods, functional convenience foods, advances in technology such as cashless payment systems, decreasing equipment costs, and manufacturers focus on extending product availability. Market growth is higher in developing countries driven by increasing urbanization, rise in disposable incomes, and changing lifestyle of working class.

Technology advancements have made retailing services through vending machines more cutting edge offering compelling benefits to modern time-pressed consumers. From a crude mechanical device, vending machines have developed phenomenally over the years into a sophisticated, touch-screen operated ubiquitous machine delivering anything from live crabs and drinks to music. Vending machine technology continues to transform in recent times with the latest advancements earmarking an era of Intelligent vending machines. These machines armed with a glut of hi-tech features are designed to enhance user interaction and offer unique vending experience.

With the fight against obesity and sugary sodas taking a conscious route among all layers of the society, the latest trend in the vending machines is the emergence of healthy vending machines. The market is witnessing an increasing installation of such machines to meet consumers growing demand for healthy foods including functional foods and organic products. Demand for these healthy vending machines is more predominant in schools and other educational institutes following new laws and standards implemented by the federal government such as ban on sodas and sweetened sports drinks and setting nutritional standards for snacks sold across all schools. Further, with rising environmental awareness across the world, against the backdrop of energy resource depletion, there is an increasing emphasis on energy efficient vending machines.

The United States represents the single largest market for vending machines in terms of installed base. Of late, however, the market has been sailing in troubled waters, largely due to factors such as shifting consumer preferences, drop in discretionary spend, increasing competition from other sectors, and rising food prices. In Japan, the vending machine market has been charting a declining pattern on the revenue graph over the past decade, which highlights the regions mature market levels. Asia-Pacific represents the fastest growing market for vending machines, owing to the steady economic growth, changing consumer behavior, rapid urbanization, and increasing standards of living, particularly across countries such as China and India. A growing clan of modern population in these countries is using vending machines making the industry an indispensable part of modern life.

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