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Automatic Vending Market Report 2007
Key Note Publications Ltd, Feb 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.
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