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        Vending Machine Operators Industry Profile

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        Excerpt from Vending Machine Operators Industry Profile

        Companies in this industry sell soft drinks, candy, snacks, and other products through vending machines that they service. Major US companies include American Food and Vending, AVI Food Systems, and divisions of ARAMARK and Coca-Cola; outside the US, major companies include China's Ubox, Japan's DyDo Group, and Switzerland's Selecta, as well as the vending machine units of UK-based firms Compass Group and Sodexo.

        The world is home to more than 18 million vending machines, according to Frost & Sullivan Research Services. Outside the US, vending machines are especially popular in Japan and the Netherlands. China represents an opportunity for industry growth. Global growth is driven by technological advancements that allow for automated, electronic transactions, such as ordering through touchscreen-enabled devices or conducting secure, cash-less, mobile payments.

        The US vending machine operators industry includes about 4,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $7.5 billion.

        COMPETITIVE LANDSCAPE

        Consumer spending and employment growth drive demand, since many vending machines are located in workplaces. The profitability of individual companies depends on effective merchandising, reliable service and maintenance, and securing prime locations. Large companies can offer a wide product selection, service large accounts, and enjoy scale advantages in purchasing, finance, and distribution. Small companies can compete effectively by serving a local market, providing superior customer service, or offering unique products. The US industry is concentrated: the top 50 companies ...

         
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