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beverage vending machine

Venturing into the Cold Beverage Vending Machine Market: A Market Assessment Study for an International F&B Manufacturer


Target market: Beverage Vending machine market |Region under focus: Global | Focus Area: Cold beverage vending machine market

Engagement scope

In a span of 5 weeks, the client, an international F&B manufacturer, gained comprehensive data-backed insights to successfully action their plan to venture into the cold beverage vending machine market. Infiniti’s market assessment study for the F&B client included comprehensive insights including cold beverage vending machine market segmentation (based on region and application segment), critical market dynamics (market size, forecasted CAGR up to 2024, market trends, and challenges), competitive assessment of leading operators in the market, and key recommendations from industry experts.

Business challenge

The client, a prominent international F&B manufacturer, was evaluating the feasibility of promoting and selling their cold beverages through vending machines. Being a segment that they had no prior expertise in, the company partnered with Infiniti Research to support its market research efforts in the global cold beverage vending machine market. The F&B manufacturer wanted to understand the most lucrative markets to invest in and the target consumers, product descriptions and strategies used by key market competitors, and identify innovative practices that would give them a competitive edge in the market. Apart from this, the client also sought a detailed ROI forecasting analysis considering the cost of the initial investment in different markets, annual repair, maintenance cost, and the net profitability expected.

With the emergence of new technologies such as face and voice recognition systems, interactive display, and smart sensors, the additional costs associated with such beverage vending machines have also increased,” says an industry expert at Infiniti Research.

For comprehensive market insights on the beverage vending machine market

Market Overview: Global Cold Beverage Vending Machine Market

The demand for vending machines has increased as F& B companies increasingly focus on profits by eliminating middlemen and disinvesting on unprofitable sites while competing for suitable locations. The significant growth of the food and beverage industry, especially in terms of ready-to-drink packaged beverages, over the past decade has mostly fueled the demand in the beverage vending machines market. As a result, beverage vending machines are gradually becoming common in locations, including corporate offices, hotels, schools and colleges, airports, railway or metro stations, and quick service restaurants (QSR). Furthermore, instant service and innovations such as cashless payment options using smartphones increase the popularity of cold beverage vending machines among end-users.               

According to experts at Infiniti Research, APAC and the Americas are the lucrative markets for cold beverage vending machine suppliers/operators. The strong installed base of cold beverage vending machines across Japan and the US, together constituting over 60% of the global installed base, is expected to drive market demand, followed by Italy, France, and China.

Want market data on the country-wise breakup and region-specific insights of the global installed base of cold beverage vending machines?

Our Approach

Infiniti proposed a unique blend of rigorous secondary research and in-depth primary interviews to develop a complete understanding of the global cold beverage vending machine market. The primary research comprised of telephonic discussions and interviews using an unstructured questionnaire with 45 seasoned respondents holding strategic decision-making positions or extensive industry expertise. Research experts at Infiniti also conducted rigorous secondary market research through classified data sources.

The data gathered through these sources have been used for a detailed market assessment study with a region-wise and application segment-wise focus. Experts at Infiniti also conducted a competitor assessment and profiling study in the cold beverage machine markets in countries, including Japan, the US, China, Germany, and France, to name a few. This was done to provide the client with detailed insights on the competitors and their strategies in each of these markets. The client was also presented with specific data on the unique selling propositions, vending machine types, and innovations adopted by key competitors in various markets.

An ROI analysis was undertaken to help the F&B client understand the set-up costs in different regions. Details regarding the initial set up costs and the maintenance cost were calculated to determine the operating costs to be incurred every year. Further, the demand planning and forecasting analysis helped the client determine expected demand levels and the level of inventory required to meet them.

Key recommendations for the cold beverage vending machine market client

Phased implementation: Since the client was new to the cold beverages vending market, experts at Infiniti suggested a phased approach of implementation. The initial phase includes targeting countries and locations with high demand for ready-to-consume cold beverages and vending machines’ market popularity. Experts at Infiniti helped the client identify two specific regions and audiences that need to be targeted for the initial roll-out. As the client was already established in the F&B business, the company’s most profitable markets were also a significant factor influencing this decision.

Targeting educational institutions: In the client’s target market for initial roll-out, experts at Infiniti identified that schools and educational institutions are lucrative segments with high demand for healthy and nutritional cold beverages. The product portfolios that can be targeted through cold beverage vending machines for this audience include 100% juice products, unflavored/flavored low-fat milk products, low-calorie beverages (five calories per fluid ounce), and no-calorie beverages (less than five calories per eight fluid ounces).

Digital payment methods: Vending machines with cashless or digital payment methods are becoming highly prevalent globally. Infiniti recommended that the client invest in product portfolios with cold beverage vending machines that support payment gateways such as Alipay and GrabPay which are especially favored among the younger tech-savvy population. An in-depth list of product portfolio and a feasibility study was provided to the client, along with examples of similar competitors’ product portfolios to understand the investment requirements.

Business outcome

Based on the market assessment study and the detailed recommendations provided by Infiniti Research, the client ventured into the cold beverages vending machine market through a phased approach. Within seven months of entering the market, the company’s beverage sales per unit doubled. Other key benefits achieved by the client include:

  • Accurately targeted the audience in different locations and marketed the right cold beverage products in high demand. This helped the company increase the sales considerably and increased its market share by 20% within the first nine months.
  • The client initially rolled out Iced coffee vending machines in two vital commercial locations. This initiative became a huge success giving them an annual profit of $ 2.1 million; this prompted them to expand into the business and set up their iced coffee vending machines in 50+ locations across the target market within a year.
  • Although the initial set-up cost was higher, adopting vending machines with high-tech, self-servicing technologies helped the client gain high accessibility, low operation cost, and higher effectiveness.
  • Invested in R&D for diversification into premium healthy and nutritional drinks as the client identified this gap in competitor offerings. Although several competitors were offering healthy and nutritional beverages through vending machines, the demand for premium products in the category was high, with a limited number of players catering to this segment.
  • Identified and eliminated under-performing product categories in the vending machines through a location-based approach, helping them better inventory planning.

Gain access to the complete engagement, including strategic market insights, market trends, competitor analysis, and recommendations given to the client by industry experts at Infiniti Research

beverage industry trends

Keeping up with the Latest Beverage Industry Trends and Market Updates

Consumers around the world are moving to a healthier lifestyle, making a great impact on the product offerings of the beverage industry around the world. Customers are switching gradually from caffeine-laden and sugary drinks to alternatives that are more healthy and also environmentally friendly. Companies that want to survive such beverage industry trends must start by filling the gaps in their offering to meet the changing consumer demands.

The article below involves a global beverage industry analysis highlighting some of the key beverage industry trends in its entirety to help companies in the sector understand and stay abreast of the latest news, innovations, and market developments.

Top beverage industry trends

beverage industry trendsHyper-personalization of functional beverages

Functional beverages is one of the newest beverage industry trends that offer several health benefits by packing superfood ingredients including turmeric, activated charcoal, matcha, and aloe-vera into the beverages. Functional beverages promote overall wellness goals of consumers. Some of the key benefits they claim to offer include weight loss, improved sleep, and better gut health. Such healthy grab-and-go options are notable beverage industry trends becoming popular across the globe.

Are you a beverage industry company looking to improve your bottom line by staying abreast of the market changes, innovations, and the top beverage industry trends? Request a free proposal to know how our services can help you achieve.

Increased use of automation

Businesses across industries are highly focused on lowering their costs and maximizing profits. Also, it is a known fact that the food and beverage industry is highly sensitive as even a minor drop in product quality will be easily noticed by consumers and this can greatly hamper the brand image. With automation, beverage companies are trying to eliminate the chances of human error in packaging or quality control and also reduce the overall costs. Several companies are adopting beverage industry trends like automating their processes, thereby reducing costs and allowing them to dedicate more resources to branding and R&D. Automation is also playing a big role in food production and packaging as it allows for precise tracking and measurements to keep up with industry regulations and quality standards. Moreover, players in the beverage industry are considering automation as it helps reduce downtime and increase productivity.

Floral flavors market is blooming

The distinct taste of floral flavors has made it one of the highly lucrative beverage industry trends right now. Floral flavors are also known to possess great aroma and tastes and a lot of other health benefits, without adding extra calories. The EMEA region is expected to lead the global floral flavors market in the next couple of years.

Our portfolio of services caters to companies across industries and are designed to be in line with the latest market innovations and trends. Know how our solutions can help you simplify your business challenges.

Premium packaging might soon become a norm

Uniqueness and personalization are two factors that impact buying behavior or modern consumers. Customers now look for more bespoke designs in packaging rather than off-the-shelf products. This is soon to become one of the major beverage industry trends. Beverage companies are increasingly laying importance to packaging by making overhauls to their current designs or even introducing new packaging for their products. In fact, beverage industry analysis by our experts shows that the sector is moving towards new beverage industry trends like premium packaging as a response to consumer desires.

Unspoken benefits of blockchain in the beverage industry

The importance of trust is high in the beverage industry and it plays a great role in building relationships between a company and its customers. The number of people falling ill due to food and beverage contamination is on the rise. This could be due to several factors including improper packaging, fake substitute manufacturers, and the addition of too many preservatives. Players in the food and beverage industry are now becoming aware of the benefits that blockchain technology can provide them in eradicating problems such as the usage of fraudulent ingredients and fake manufacturers. Foodborne illness can be reduced to a greater extent as blockchain can be integrated with advanced AI capabilities and Internet of Things (IoT) to identify and track food products in real-time, making blockchain one of the most popular and attractive beverage industry trends.

Learn more about how these beverage industry trends can have a major impact on the operations of companies in this sector.

market opportunity

Identifying the Market Potential in North America For a Beverage Industry Major With The Help Of Infiniti’s Market Segmentation Engagement

Varying consumer preferences and the growing shift towards healthier beverages pose several challenges for companies in the beverages industry, especially when it comes to identifying the profitable market segments. Click To Tweet

The global beverage industry is currently witnessing a period of rapid change. And owing to the recent industrial transformation, companies in the food and beverage industry are witnessing rapid changes. Although the global beverage industry is constantly reshaping to acclimatize itself to the ongoing changes in the market landscape, these efforts are mainly focused on avoiding traditional approaches in the market for the ones with handcrafted aesthetics. Several such factors have prompted market leaders to stay ahead of the competition by predicting consumer preferences, setting new industry trends, and penetrating newer market segments.Request Proposal

The Business Challenge

To profile the right market segments with profitable customers and devise a robust marketing strategy to enter the new market segment in North America, a leading carbonated beverages manufacturer approached Infiniti to help them conduct an in-depth market segmentation assessment. The client wanted to devise effective market segmentation strategies to better position their products in the market and meticulously track their performance. They also wanted to gauge the attractiveness of the new market segment, identify bottlenecks, and understand the potential growth opportunities in various market segments.

How Can Market Segmentation Help Players in the Carbonated Beverage Segment?

The relentless pressure to stay relevant in a rapidly accelerating marketplace such as the carbonated beverages segment makes it a necessity for players in this industry to invest in market segmentation assessments before entering newer market segments. This early stage of research is typically implemented to discover new unmet needs of the customers by venturing into new markets.Request Proposal

Though it typically deals with such factors, organizations in the carbonated beverage industry space need to invest considerably to validate new market opportunities. To do so, and to help organizations identify potential market segments and understand the market structure, the market segmentation experts at Infiniti conducted a detailed market research by applying both quantitative and qualitative techniques that guide strategic decision making.

Summary of Our Market Segmentation Assessment Engagement

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Client Journey

With the help of Infiniti’s market segmentation based solutions, the carbonated beverages manufacturer was able to expand their business by gauging the growth projections in North America. The solutions offered also helped the client to identify relevant data and use it to gain a stronger foothold within the geographical segment.

Furthermore, to help the client identify the market dynamism and future potential in their region of interest – ‘North America’ – the market segmentation experts at Infiniti conducted a detailed market survey to help them gain a better understanding of the food and beverage industry. The approach included primary and secondary research methodologies coupled with qualitative and quantitative data collection procedures. The experts also reached out to various stakeholders in the food and beverage industry.Request Proposal

Solution Benefits and the Business Impact

The solutions offered by the market segmentation experts at Infiniti uncovered much-needed insights that helped the beverage industry client to profile various segments and devise suitable market entry strategies to drive profitability across segments. Also, with the help of our solution, the beverage industry client was able to understand the market for carbonated beverages and devise effective strategies for long-term success.

The Future

Beverage industry players have witnessed a rollercoaster of changes within the market segment, including new challenges and impressive growth. Owing to the rapid industrial transformation and the changing industry standards, the beverage industry, particularly the carbonated beverages segment is set to witness enormous growth opportunities in the coming years. While a few millennials are still unsure about their preferences when it comes to beverages, leading manufacturers of carbonated beverages have started increasing their focus on delivering new and innovative solutions by venturing into new and unexplored market segments.

A must-read case study for strategy specialists and decision makers looking to develop an understanding of the global beverage industry

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Competitive Intelligence Solution Helps A Probiotic Drinks Manufacturer Generate New Sales Value and Take Advantage of Cross-Sell Opportunities

Globally, the demand for probiotics has been on an upswing, with recent studies confirming that 19% of respondents in the US claiming to have digestive concerns consuming probiotic products in one form or the other.

The global beverage industry covers varying types of drinks, including soft drinks, bottled water, milk and dairy, sports drinks, functional beverages, alcoholic beverages, energy drinks, and juices. Increasing concerns regarding obesity and health awareness are expected to trigger the growth of the functional beverage and bottled water product segment, while at the same time limit the demand for carbonated drinks. Additionally, growing concerns towards other health problems are reshaping the future of the global beverage industry. For instance, the demand for functional beverages, such as relaxation drinks, energy drinks, and ready to drink coffees and teas, is gaining popularity owing to their low-calorie contents.

However, a few factors are expected to influence the growth prospects of the beverages industry in the coming years. These factors include:

  • Inventory: Controlling and managing inventory in the beverage industry can be much more difficult than it is in other sectors. The reason is that many of the products that are sold in the beverage industry are perishable and require excellent inventory management abilities to prevent wasting large sums of money from spoilage.
  • E-Commerce: E-commerce has been a steadily growing trend for the past decade, and businesses across industries have taken advantage of this trend and capitalized on the opportunities it provides. The beverage industry has not chosen e-commerce as quickly as other industries have. However, this trend could soon change. The reason is that many consumers have demonstrated a strong preference for the online shopping of beverages.

Many such factors are compelling beverage industry firms to leverage the use of competitive intelligence solutions.IR_Brochure Competitive intelligence solutions help firms across the beverage industry to gather, analyze, and manage market information to make informed and strategic business decisions.

The Business Challenge

  • The Client: Probiotic drinks manufacturer

The client, a leading beverage industry player with business units spread across the globe, was steadily losing market share to competitors, including new service providers. While the client had access to significant amount of internal and external data, they lacked the bandwidth and analytical tools and techniques to perform the necessary detailed market analysis.

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Our Journey

The competitive intelligence specialists at Infiniti followed an extensive research methodology comprising interviews and discussions with prominent stakeholders in the beverage industry space to provide the client with detailed market insights. The experts also compiled information from reliable sources such as trade shows, industry forums, and company presentations to help the client gauge the performance of their competitors.

The Solution Benefit and the Business Impact

With the help of Infiniti’s competitive intelligence solution, the beverage industry client gained a 360-degree market, customer, and competitor view of the time of the analysis, and the technology to make further assessments. The client applied this to generate new sales value, take advantage of cross-sell opportunities and develop churn prevention strategies. This helped them succeed in improving their market position.

The Future

The digital revolution is changing the lives of individuals beyond recognition, including the world of food and beverage. Smartphones have enabled consumers to communicate and do business ‘on-the-go,’ and now individuals demand beverage products that match their changing lifestyles.

A must-read case study for strategy specialists and decision makers looking to develop an understanding of the beverage industry.


demand management

Supplier Identification and Profiling: How Infiniti Helped a Prominent Alcoholic Beverages Client Curtail Procurement Costs

Overview of the alcoholic beverages industry

The global alcoholic beverages space is witnessing promising growth owing to the growing consumption of alcohol among the millennial population and the rising disposable income. With the altering preferences of the customers, companies in the alcoholic beverages space are redefining their product offerings to increase consumers’ perception towards the beverages. Such innovations and product development act as a catalyst to capture major shares and promote the growth of the alcoholic beverages space. Besides the conventional factors, the rise in urban population and globalization will promote the growth of the alcoholic beverages space.

Although the growing focus on tourism is fueling the growth of alcoholic beverages industry, some prominent factors that may influence the growth over the years include:

  • Fluctuating climatic conditions: Irregular climatic conditions can have an adverse impact on the crops used to produce beverages. This can have an impact on the cost of beverages, where organizations are facing pressures to offer consistency in their product offerings while maintaining the costs.
  • Increasing government regulations: Recently, governments from across the globe are imposing strict regulations on the alcoholic beverages. Also, the growing concern for health and wellness is compelling government authorities to limit the production of alcohol while maintaining the quality standards.

To identify the prominent players and reach out to the target audiences in a seamless and agile manner, prominent businesses are leveraging supplier identification and profiling solution. Supplier profiling solutions aim at profiling prominent suppliers from a pool of suppliers. Furthermore, it helps businesses reduce the procurement costs while delivering service optimization.IR_Brochure

The Business Challenge

  • The client: A prominent alcoholic beverages manufacturer

The client, a prominent alcoholic beverages manufacturer, wanted to profile the most suitable suppliers and improve the supply chain process by gaining better visibility into the operations. With the help of Infiniti’s supplier identification solution, the client wanted to deliver better quality in the products and services offered while making the most of the opportunities available. The alcoholic beverages client wanted to seek ways to deal with people, processes, and technologies and manage and control additional spend. The key challenge faced by the client was while segmenting suppliers based on spend and criticality.

IR- supplier profiling

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Our Journey

To segregate the suppliers based on purchase value, sourcing risk, and complexity, the supplier identification experts at Infiniti carried out an extensive research methodology comprising interviews and discussions with prominent stakeholders in the alcoholic beverages space. Moreover, to understand suppliers’ performance, the experts also compiled information from a wide array of reliable sources such as trade shows, paid industry databases, and industry presentations in the beverage industry.

The Solution Benefit and the Business Impact

The supplier identification and profiling solution offered by Infiniti helped the alcoholic beverages client manage supplier activities based on the criticality of the sourcing complexity. The alcoholic beverages client was able to analyze the performance of suppliers based on various metrics such as the price, quality, delivery, and service management. The solution also helped the client identify the supplier risks such as late shipments of delivery and non-conforming products. The end-users were able to benefit from the supplier profiling solution in terms of understanding the supplier’s performance based on various metrics and identifying the strengths and weaknesses of the suppliers.

The Future:

The future of alcoholic beverages will be marked by innovations in the form of packaging and labeling to improve the shelf life of the products. Moreover, technologies can promise better opportunities for the industries looking to enhance their product performance.

A must-read case study for strategy specialists and decision makers looking to develop an understanding of the alcoholic beverages industry.


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Pharmaceutical Industry

What Is Brewing in The Coffee Industry? Here Are the Top 4 Coffee Industry Trends

coffee industry trends

Coffee holds enormous power over the modern generation, especially over the working-class population. Many of you would agree without a second thought that nothing wakes up your senses on a Monday morning as much as the smell of freshly grounded coffee. In short, isn’t coffee the oxygen cylinder that keeps you up and going on a long day at work? Affirmative!

Over the years, coffee producers and popular coffee chains have been taking advantage of the inclination of people’s taste buds towards caffeine to formulate new products offering with respect to the latest coffee industry trends. As per, Technavio’s report ‘the global organic coffee industry will grow at a CAGR of close to 13% from 2017-2021’. So, what are the techniques that players in the coffee industry are using to keep their customer base hooked on to this beverage? And more importantly what are the budding coffee industry trends that all the coffee lover should know about? Gear up as we unveil them to you:IR_Brochure

Coffee’s Transformation from A Beverage to An Experience

‘Millennials’ unlike their predecessors are more mobile and social. The older generations liked to enjoy their coffee in the privacy of their homes and were more price conscious. However, there has been a drastic transformation in the way coffee is perceived now. Millennials have taken coffee from an ordinary kitchen table beverage to a premium drink to be enjoyed at public venues. This is one of the main reasons why the number of coffee shops and premium coffee brands has boomed in the last decade. Coffee has become more of an experience that people look forward to savor in the luxury of a cozy coffee shop or even at their workstations.

Coffee Is No More A ‘Hot’ Beverage

The baby boomers and millennials are the generations who enjoy the ‘cool’ lifestyle; this probably explains their inclination to cold brew or cold coffee. Cold brew is much sweeter and can incorporate a variety of recipes compared to the regular coffee. And the interesting part is, it is not just coffee with cold milk that attracts this generation, coffee with sparkling water or the likes are also much appreciated by this group.

Nitro Boost Your Drowsy Mornings

No, we are not talking about the explosives here, we are talking about the amalgamation of nitrogen and cold brew coffee that could create an explosion of tempting flavors on your taste buds. It is a teetotaler’s dream-come-true of a non-alcoholic drink that flows through a Guinness like bar tap. Here, cold brew coffee is stored in kegs, which are later infused with nitrogen and released through a pressurized valve – what is even better? It looks just like a glass of Guinness.

Coffee Is the New Tea

Previously, we have only been familiar with coffee beans being processed to make coffee, but the new trend is ‘Coffee-leaf tea.’ Yes, you just read that right! The critical difference here is that this brew is made with the leaves of the coffee tree, which are known to be rich in antioxidants and low on caffeine – what an utterly healthy combination!

To know more about the latest developments in the coffee industry trendsAsk an analyst

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Don’t Miss Out on These Trends in The US Market for Beverages

The beverage industry is no more what it used to be – not just in the US market but globally. In the US market, the sale of juices is slowly dipping and the market for sugary sodas is under fire. This compels companies in the beverages market to keep a constant track of changing consumers preferences and adapt accordingly. So, what are these evolving trends in the US beverages market that players need to watch out for? Read on:  IR_Brochure

Growing Demand for Energy, Water-based, and Sports Drinks

Carbonated soft drinks have become a thing of the past with companies like PepsiCo and Coca-Cola investing heavily in R&D to meet the growing need for ‘healthy beverages’. The players in the US market for beverages are in constant competition to introduce innovative products for the customers such as flavored water, sparkling and energy drinks that emphasize on positive health benefits rather than just cutting calories, sugar or sodium.

Adding a Twist to Conventional Recipes

Several brands in the US market are revamping their original recipes to portray a healthier outlook to their customers. Products like Diet Coke and Mountain Dew’s Kickstart are examples of successful twists in the original flavors offered by brands. Such products in the beverage industry are attracting more attention from customers owing to their low calorie and health-centric approach.

The Size of the Bottles are Shrinking

Switching to low-calorie products is a major concern for the players in the beverage industry like PepsiCo and Coca-Cola, which are known to have high sugar content. But an action was the need of the hour in the US market considering the growing concerns of obesity among the population and rising flak from the anti-obesity advocates. Therefore, these beverage companies have arrived at a new solution to cut down on calorie-consumption by downsizing the containers, which means promoting less intake of sugar and increased profits for players in the beverage industry.

Authenticity is the Key

Tapping into a shopper’s nostalgia is one of the keys to striking the chords with a customer’s mind. Several brands in the US market are starting to use this strategy to launch a number of vintage-inspired drinks to make a place for themselves in the hearts of the customers. Also, the rise of craft beverages is another opportunity for companies to cash in on these segments and gain more popularity among customers.

To know more about the trends in the beverages industryAsk an analyst

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