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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.

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