Automatic Vending Market Report 2007

Sales of products through vending machines rose by 2.8% in 2006 to £3.52bn. The number of vending machines in operation also increased to 1.3 million, an increase of 3.1% on 2005. Sales growth in the vending market between 2002 and 2006 outperformed the increase in household expenditure on food and non-alcoholic beverages over the same period.

The three main sectors of the vending market are refreshment machines; cigarette and tobacco machines; and other vending machines. The largest sector is refreshment machines, which includes hot and cold drinks, snacks, confectionery, sandwiches and meals. The fastest-growing sector between 2002 and 2006 was other machines, which includes a wide range of non-food and beverage items, such as newspapers and magazines, personal care products and condoms. Sales of cigarettes through vending machines have demonstrated the slowest rate of growth since 2002 and are now accounting for a steadily declining percentage of the market. Health concerns and the removal of cigarette machines from some locations by operators have contributed to the situation.

A number of new legislative measures are expected to have an impact on the UK automatic vending industry. These include: the EU directive on the Waste Electrical and Electronic Equipment (WEEE), which is the main legislation applicable to vending machines at the end of their life; The Restriction of Hazardous Substances Regulations (RoHS) Directive, which restricts the use of certain hazardous substances in electrical and electronic equipment (including vending machines); and the European Food Safety Regulation, which requires all food businesses to base their food safety management on what are called Hazard Critical Control Point Principles (HACCP).

From September 2007, vending machines in schools will only be able to stock products such as edible seeds, unsalted nuts, and fruit and vegetables. No confectionery, chocolate or crisps will be allowed and the only other drinks available will be water, milk, pure fruit juices, yoghurt and milk drinks, low-calorie hot chocolate, tea and coffee. To meet these requirements, many of the leading vending companies have launched new ranges of healthy option snacks, most of which have limited amounts of calories, fat, sodium and added sugar.

We forecast that the sale of products though vending machines will continue to rise between 2007 and 2011, as the number of machines in use increases further and the range of products that can be purchased continues to widen. The introduction of more healthy options to vending machines should also help to increase their appeal to a wider range of consumers and technological developments such as cashless payment systems should similarly help to boost sales. SHOW LESS READ MORE >

Executive Summary

1. Market Definition

REPORT COVERAGE

MARKET SECTORS

Refreshment Machines

Cigarette/Tobacco Machines

Other Machines

MARKET TRENDS

Decline in the Number of Smokers Continues

Trend Towards More Healthy Vended Food and Drinks

Technological Developments

More Legislation for the Automatic Vending Operators

ECONOMIC TRENDS

Gross Domestic Product

Table 1: UK Gross Domestic Product at Current and Annual Prices (£m), 2001-2005

Population

Table 2: UK Resident Population Estimates by Sex (000), Mid-Years 2001-2005

Inflation

Table 3: UK Rate of Inflation (%), 2001-2005

Unemployment

Table 4: Actual Number of Unemployed Persons in the UK (million), 2001-2005

Household Disposable Income

Table 5: UK Household Disposable Income Per Capita (£), 2001-2005

MARKET POSITION

The UK

Table 6: UK Sales of Vended Products and Household Expenditure on Food and Non-Alcoholic Beverages at Current Prices (£bn at rsp and %), 2002-2006

Overseas

2. Market Size

THE TOTAL MARKET

Table 7: The Total UK Automatic Vending Machine Market by Value at Current Prices (£m at rsp), 2002-2006

Figure 1: The Total UK Automatic Vending Machine Market by Value at Current Prices (£m at rsp), 2002-2006

Number of Machines in Use

Table 8: Estimated Number of Automatic Vending Machines in Use in the UK by Sector, 2002-2006

Figure 2: Sector Share of Refreshment Machines in Use in the UK by Number (%), 2006

BY MARKET SECTOR

Refreshment Machines

Table 9: The UK Refreshments Machines Sector by Value at Current Prices (£m at rsp and %), 2002-2006

Cigarette/Tobacco Machines

Table 10: The UK Cigarette/Tobacco Machine Sector by Value at Current Prices (£m at rsp and %), 2002-2006

Other Product Machines

Table 11: The UK Other Products Machine Sector by Value at Current Prices (£m at rsp and %), 2002-2006

OVERSEAS TRADE

General Overview

Table 12: UK Overseas Trade in Automatic Vending Machines (£000, number and £), 2005

Table 13: UK Overseas Trade in Vending Machine Parts and Components (£000), 2002-2005

Imports

Table 14: Leading Sources of Imports for Automatic Vending Machines by Value (£000), 2006

Exports

Table 15: Leading Export Markets for Automatic Vending Machines by Value (£000), 2005

3. Industry Background

RECENT HISTORY

INDUSTRY SYNOPSIS

Table 16: Financial Results for Other Non-Store Retail Sales (£000, % and £), 2006

Number of Companies

Table 17: Number of UK VAT-Based Enterprises Engaged in Other Non-Store Retail Sales by Turnover Sizeband (number and %), 2006

Employment

Table 18: Number of UK VAT-Based Enterprises Engaged in Other Non-Store Retail Sales by Employment Sizeband (number and %), 2006

REGIONAL VARIATIONS IN THE MARKETPLACE

Table 19: Number of UK VAT-Based Enterprises Engaged in Other Non-Store Retail Sales by Government Regional Office (number and %), 2006

DISTRIBUTION

HOW ROBUST IS THE MARKET?

Table 20: Number of UK VAT-Based Enterprises Engaged in Other Non-Store Retail Sales by Age of Business (number and %), 2006

LEGISLATION

Waste of Electrical and Electronic Equipment

Restriction of Hazardous Substances Regulations

Mains Water

Water in a Vending Machine

Food Safety Act

KEY TRADE ASSOCIATIONS

Automatic Vending Association

British Water Cooler Association

European Vending Association

National Association of Cigarette Machine Operators

National Independent Vending Operators

4. Competitor Analysis

THE MARKETPLACE

LEADING MACHINE AND PARTS MANUFACTURERS

Automatic Products (UK) Ltd

Company Structure

Current and Future Developments

Financial Results

Autonumis Ltd

Company Structure

Financial Results

Azkoyen UK Ltd

Company Structure

Current and Future Developments

Financial Results

Crane Merchandising Systems Ltd

Company Structure

Current and Future Developments

Financial Results

DarenthMJS Ltd

Company Structure

Current and Future Developments

Financial Results

Deutsche Wurlitzer UK

Company Structure

Current and Future Developments

Financial Results

ETNA Vending Technologies UK

Company Structure

Current and Future Developments

Financial Results

FAS UK International Ltd

Company Structure

Financial Results

Mars UK Ltd

Company Structure

Current and Future Developments

Financial Results

N&W Global Vending Ltd

Company Structure

Current and Future Developments

Financial Results

The Vending Corporation Ltd

Company Structure

Current and Future Developments

Financial Results

Westomatic Vending Services Ltd

Company Structure

Current and Future Developments

Financial Results

Leading MACHINE OPERATORS AND DISTRIBUTORS

Autobar Group Ltd

Company Structure

Current and Future Developments

Financial Results

Bunzl Vending Services Ltd

Company Structure

Current and Future Developments

Financial Results

Coffee Point PLC

Company Structure

Current and Future Developments

Financial Results

Selecta UK Ltd

Company Structure

Current and Future Developments

Financial Results

24seven Vending Ltd

Company Structure

Current and Future Developments

Financial Results

Sinclair Collis Ltd

Company Structure

Financial Results

Vendia Ltd

Company Structure

Current and Future Developments

Financial Results

Other Suppliers

Aramark UK

Associated Vending Services Ltd

Drinkmaster Holdings Ltd

Fags (Machines) Ltd

The Midshires Group Ltd

The RefreshU Group

Snack Point Ltd

Sodexho UK Ltd

Springbank Industries Ltd

SSL International PLC

UK Vending Ltd

COMMODITY AND MERCHANDISE SUPPLIERS

Aimia Foods Ltd

Eurogran International Ltd

Other Suppliers

BT Redcare

G2 Integrated Solutions

Vianet PLC

DISPOSABALES AND COMPONENTS

Huhtamaki UK Ltd

Nebrak Ltd

Veriplast International

OUTSIDE SUPPLIERS

MARKETING ACTIVITY

Exhibitions

5. Strengths, Weaknesses, Opportunities and Threats

STRENGTHS

WEAKNESSES

OPPORTUNITES

THREATS

6. Buying Behaviour

Consumer Penetration

School Meals

Smoking

Table 21: Prevalence of Cigarette Smoking by Sex and Socio-Economic Classification† in Great Britain (%), 2001/2002 and 2004/2005

Table 22: Average Weekly and Total Weekly Household Expenditure on Cigarettes in the UK (£m and £), 2000/2001-2004/2005

Sodexho University Lifestyle Survey

Food in Hospitals 61

Table 23: PEAT Assessment of Hospital Food (number of hospitals and %), 2004-2006

7. Current Issues

EUROPE

THE POLITICAL SCENE

Vended Food and Drink in Schools

Ban on Junk Food Advertisements

HEALTH

The Health Education Trust (Real Choice) Initiative

Health Bill Receives Royal Assent

PRODUCT DEVELOPMENT

Demand for Healthy Snacks

Thermochromic Technology

Selling More than Drinks

LEGISLATIVE CHANGES

Age Discrimination

CORPORATE

THE ENVIRONMENT

Waste of Electrical and Electronic Equipment

Restriction of Hazardous Substances Regulations

8. The Global Market

INTRODUCTION

THE US

Table 24: US Automatic Vending Industry Revenues ($bn), 2001-2005

Table 25: US Automatic Vending Machines by Location (%), 2004 and 2005

Table 26: Estimated Vending Sales in the US by Category ($bn), 2004 and 2005

JAPAN

EUROPE

FUTURE GROWTH MARKETS

9. Forecasts

Introduction

THE ECONOMY

Gross Domestic Product

Table 27: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2006-2010

Inflation

Table 28: Forecast UK Rate of Inflation (%), 2006-2010

Unemployment

Table 29: Forecast Actual Number of Unemployed Persons in the UK (million), 2006-2010

Population

Table 30: Forecast UK Resident Population by Sex (000), Mid-Years 2006-2010

FORECASTS 2007 to 2011

Table 31: The Forecast Total UK Automatic Vending Machines Market by Value at Current Prices (£m at rsp), 2007-2011

Figure 3: The Forecast Total UK Automatic Vending Machines Market by Sector by Value at Current Prices (£m at rsp), 2007-2011

By Market Sector

Refreshment Machines

Table 32: The Forecast UK Refreshment Machine Sector by Value at Current Prices (£m at rsp), 2007-2011

Cigarette/Tobacco Machines

Table 33: The Forecast UK Cigarette/Tobacco Machines Sector by Value at Current Prices (£m at rsp), 2007-2011

Other Machines

Table 34: The Forecast UK Other Machines Sector by Value at Current Prices (£m at rsp), 2007-2011

Market Growth

Figure 4: The Forecast UK Automatic Vending Machines Market by Value at Current Prices (£m at rsp), 2002-2011

FUTURE TRENDS

Cashless Vending

Other Technological Advances

10. Company Profiles

24seven Vending Ltd

Autobar Group Ltd

Bunzl Vending Services Ltd

Crane Merchandising Systems Ltd

Selecta Uk Ltd

Sinclair Collis Ltd

Westomatic Vending Services Ltd

11. Consumer Confidence

METHODOLOGY

KEY FINDINGS THIS QUARTER

THE WILLINGNESS TO BORROW

Confidence Slips Slightly

Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), November 2005-2006

Significantly More Adults Are Willing to Borrow

Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), November 2005-2006

SPENDING FROM SAVINGS

Little Change in Spending from Savings

Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), November 2005-2006

Saving Grows in Relative Importance

Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), November 2005-2006

12. Further Sources

Associations

Publications

Government Publications

Other Sources

Bisnode Sources

-Automatic Vending Association
-British Water Cooler Association
-European Vending Association
-National Association of Cigarette Machine Operators
-National Independent Vending Operators
-Automatic Products (UK) Ltd
-Autonumis Ltd
-Azkoyen UK Ltd
-Crane Merchandising Systems Ltd
-DarenthMJS Ltd
-Deutsche Wurlitzer UK
-ETNA Vending Technologies UK
-FAS UK International Ltd
-Mars UK Ltd
-N&W Global Vending Ltd
-The Vending Corporation Ltd
-Westomatic Vending Services Ltd
-Autobar Group Ltd
-Bunzl Vending Services Ltd
-Coffee Point PLC
-Selecta UK Ltd
-24seven Vending Ltd
-Sinclair Collis Ltd
-Vendia Ltd
-Aramark UK
-Associated Vending Services Ltd
-Drinkmaster Holdings Ltd
-Fags (Machines) Ltd
-The Midshires Group Ltd
-The RefreshU Group
-Snack Point Ltd
-Sodexho UK Ltd
-Springbank Industries Ltd
-SSL International PLC
-UK Vending Ltd
-Aimia Foods Ltd
-Eurogran International Ltd
-BT Redcare
-G2 Integrated Solutions
-Vianet PLC
-Huhtamaki UK Ltd
-Nebrak Ltd
-Veriplast International