Hello reader, we hope you all are doing well.  We have been publishing much useful and valuable content around vending machines and their business-like Vending Machine Profitability, Vending Machine Payment Modes, Best ways to earn from vending machines, etc.

Welcome to our brand new post on Vending Machine Market Size and scope in India. We will be talking about how big the market is and what are the growth opportunities available in the vending machine business.

The world grows more globalized when more countries and areas become politically, culturally, and economically intertwined. This allows for the market size to expand, exponentially.

Money, products, materials, information, and people flow more swiftly across national boundaries today than ever. Advances in technology have enabled and accelerated this flow and the resulting international interactions and dependencies. These technological advances have been especially pronounced in transportation and telecommunications.

This is why you can get a cup of rich Turkish coffee locally or even some grocery goods from all around the world at your local supermarket!

Globalization has thus increased the market size for not only vending machines but for all goods and services.

For any business to grow, market size is a very important factor. With vending machines gaining popularity by the day, the market potential is enormous. The Indian market is now ready for smart vending machines and so is the world.

 

Vending Machine Market Size & Scope:

 

India has more than 65 lakh potential locations in more than 500 Indian cities where a vending machine can be installed.

With around 40K hospitals, 555K workplaces, 113k public places (Metro, Railway stations, etc.), 249k factories, 220k ATM locations, 630K residentials (apartments, PGs, hostels) it is a severely under-tapped market space.

These are just the initial numbers and with technological advancements happening every day, the market potential is tremendous.

The increase in organized retailing across malls and multiplexes, BPOs, IT, and ITES industries in India will fuel demand for vending machines.

Additionally, increased investment in public infrastructure and the development of the organized retail sector would further drive the demand for India’s vending machine market over the coming years.

 

Vending Machine Market Size and the Pandemic

 

The pharmacy outlets are also recording significant growth in revenues due to the spread of the Covid-19 pandemic, which has resulted in increased usage of vending machines across hospitals and other healthcare centers.

The increase is also due to the need for contactless retail that the pandemic has created. People prefer buying products with minimal human interaction and hassle. 

Japan, which has the highest number of vending machines per capita, has seen a revival of the traditional vending machines called jido hanbaiki. 

Japan had preserved almost 90 such vending machines and their number was declining but the pandemic triggered a rise in their numbers and in turn their revival. The people who were still a little skeptical about purchasing food from the traditional outlets started using the vending machines.

The US market has evolved and adapted according to the changing times as well. The pandemic has triggered a lot of innovation in the vending machine space, so much that customers can buy a freshly baked pizza from a vending machine that is completely untouched by human hands!

The first responders were the ones that took to the machines quickly and the rest followed. It wasn’t just about a trend, it became a necessity.

The vending machine market size in India has also expanded considerably due to the pandemic. In Kerala, vending machines that dispense surgical masks for the meager cost of INR 2, have been installed in public places. 

Global vending machine market size

 

The implementation of smart customer service technologies in numerous food categories, as well as an increase in demand for food vending machines in businesses and institutions, are all reasons for the market’s growth and the increase in market size.

As per the reports of ResearchAndMarket:

The global market for Vending Machines estimated at US$134.4 Billion in the year 2020, is projected to reach a revised size of US$146.6 Billion by 2027, growing at a CAGR of 1.3% over the analysis period 2020-2027.

The rising popularity of vending machines in established and developing economies, as well as the convenience they provide to consumers, are driving up demand for vending machines. Customers’ changing buying patterns, as well as the need for a more convenient means of purchasing food and beverages, are propelling the market forward. 

Furthermore, the growing requirement to extend virtual space at a retail outlet is propelling the vending machine industry worldwide.

Future of Vending machines in India

 

According to reports by ResearchAndMarket and 6WResearch, India’s Vending Machine Market is expected to witness substantial growth of 14.9% CAGR from 2020 to 2026.

Vending machines were first implemented in India in the government transportation and hospitality sectors to allow consumers to obtain vital goods even while the stores were closed.

Integration of IoT and cloud infrastructure into vending machines to make them smart and intelligent.

The industrial vending machine market has become better with the emergence of advanced technology. The integration of RFID tags and cloud infrastructure into industrial vending machines is expected to create growth opportunities for the market in the coming years. 

 

Role of Daalchini in making things easy

 

Daalchini is at the forefront and one of the most respected brands in the Smart Vending machine space in India.

Ineffective stock ordering and identification, lack of predictability or inadequate forecasting, and big inventories of non-critical and high-volume commodities in stores, which not only increase holding costs but also take up warehouse space, all add to the company’s expenses.

We, at Daalchini, have worked up a solution to simplify things for you!

We have developed a tech-based solution to consistently get insights and data from Daalchini smart vending machines.

A dashboard provides data about sales, customers’ buying behavior, peak sales time, etc.

To keep the wastage of fresh food (like Vada Pav, Poha, Idli, etc.) low, our innovative ML-based tool called OFT (order for tomorrow) helps you. It predicts the next order for you based on sales and consumption patterns.

Daalchini uses state-of-the-art technology that minimizes these losses and gives you the boost that you need. 

 

Vending machines and different market types

 

Some common products that are sold in the vending machines are beverages, snacks, chocolate candy, etc hold a considerable share in the FMCG market space and show a very healthy growth rate.

• Beverages- Goldstein Market Intelligence analyzes the forecast of India’s packaged non-alcoholic beverages market to grow at a CAGR of 16.2% during the forecast period 2017-2030. Further, the market is anticipated to reach USD 20.4 billion by the end of the forecast period as more people are trading up to packaged drinks.
• Snacks- The savory snacks market in India (nuts, potato chips, seeds, and meat snacks), showed an increasing trend from 2019 and is expected to reach 13 billion U.S. dollars by 2026.
• Chocolates and Candies- The Indian chocolate market reached a value of US$ 1.9 Billion in 2020 with the country currently representing one of the world’s fastest-growing markets for chocolates. Looking forward, the market is expected to grow at a CAGR of 11.3% from 2021 to 2026.

The placement of vending machines is a key feature in the business being profitable and in order for it to grow. Vending machines are usually placed at the following locations;

• • Quick Service Restaurants- Chain QSRs had the biggest market share (54.2%) in India’s entire QSR market in FY 2020. The chain QSRs segment is being driven by growth in consumers’ willingness to eat out and an increasing number of creative fast-food chains.
  • Shopping Malls and retail stores- The retail sector comprises about 10% of the GDP and the growth rate of the retail sector was at about 5% in 2020.
  • Offices and Educational Institutions- There are over 1.26 million registered companies in India and almost 45,000 colleges.

• Public Transport- with a population of over 1.2 billion, India has an extensive network of public transport.

With such incredible scope, the potential is limitless!

 

Final Words:

With the lockdown changing our way of life, there has been a massive shift from traditional retail to smart retail. People are adopting healthier lifestyles and the demand for healthy snacks and beverages at the workplace as well as in schools, colleges, etc.

This demand and potential are only going to increase in the future which is going to expand the vending machine market even more.