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Automatic Vending Market Report 2008
Key Note Publications Ltd, Feb 2008, Pages: 109
We estimate that the UK market for products sold via automatic vending machines increased in value to £3.58bn in 2007, up by 1.7% from £3.52bn in 2006. The number of vending machines in operation in the UK also rose over this period, reaching nearly 1.3 million. In 2007, retail sales of vended products accounted for an estimated 4.8% of household expenditure on food and non-alcoholic beverages.
The three main sectors of the automatic vending machine market are: refreshment machines; cigarette and tobacco machines; and other vending machines. The refreshment machines sector is the largest sector, including sales of hot and cold drinks, snacks, confectionery, sandwiches and meals. The second-largest and the fastest-growing sector of the market between 2003 and 2007 was other vending machines, which includes sales of a wide range of non-food and non-beverage items, such as newspapers and magazines, personal care products and condoms.
Sales of cigarettes through vending machines are being affected by a number of issues, including health concerns, the removal of cigarette machines from certain locations and the Government's ban on smoking in enclosed places, which came into force throughout the UK in 2007. The British Heart Foundation (BHF) is calling for the outright ban of cigarette vending machines in order to stop children buying cigarettes from them. The BHF is attempting to secure a Private Member's Bill to introduce this legislation, and hopes it will help to reduce the number of youngsters smoking in the UK. The proposed ban is expected to gain widespread support among politicians after the success of the ban on smoking in public places and the raising of the legal age to smoke from 16 to 18 years.
There was a considerable amount of corporate activity in the automatic vending market during 2007. This included: the sale of the Selecta Group by Compass PLC to Allianz Capital Partners GmbH; the acquisition of the Coffee Point Group Ltd by Bunzl PLC; the purchase of the trade and assets of Automatic Products (UK) Ltd by Crane Merchandising Systems Ltd; and the acquisition by the Autobar Group Ltd of the business and assets of VR2007 Ltd (formerly 24Seven Vending Ltd) from the administrators.
We forecast that the sale of products through vending machines will increase slowly but steadily between 2008 and 2012. The introduction of more healthy vended options, an increase in the availability of a growing range of non-food and non-beverage items, and technological developments (such as cashless payment systems) should help to increase sales and could also aid demand. On the downside, however, any introduction of a ban on the sale of cigarettes through vending machines would clearly affect the automatic vending market.
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