Snack time: Consumer tastes have shifted toward healthier snacks not usually stocked in vending machines

The Vending Machine Operators industry in Canada has struggled to keep pace with changing consumer tastes, resulting in a contraction in industry revenue over the five years to 2019. During this time, consumers have cut their discretionary spending on many of the foods traditionally sold in vending machines when the price of those products increased. Consumers' heightened price sensitivity persisted during the period, limiting impulse purchases of more expensive goods at vending machines. Additionally, consumer tastes have shifted toward healthier snacks not usually stocked in vending machines. Demand for confections has declined while demand for relatively healthier foods has more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Consumers’ heightened price sensitivity limited impulse purchases of expensive goods at vending machines
  • Operators expanded their food offerings to include healthy products
  • Heightened spending will contribute to revenue expansion
  • Industry Report - Industry Analysis Chapter

    Over the five years to 2019, the Vending Machine Operators industry in Canada has performed poorly. Due to increases in both per capita disposable income and consumer spending levels over the past five years, consumers have been able to purchase industry products with increasing prices, but have also been hesitant overall when it comes to purchasing foods from a vending machine for various reasons. The consumption of soft drinks has decreased during the period along with demand for candy and confections, and healthy eating trends have negatively affected the industry for much of the period as well, with healthier products being far more expensive to purchase compared with less healthy snacks. Ope...purchase to read more.

    Additional Insights for the Vending Machine Operators Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Vending Machine Operators Industry are

  • Ability to pass on cost increases
  • Economies of scope
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Per capita soft drink consumption in the Vending Machine Operators industry impact industry performance..

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    What's in this report

    What is the Vending Machine Operators Industry?

    This industry comprises establishments that own, stock and service automated machines that retail merchandise, primarily confectionery, snack foods and soft drinks, but also cigarettes, newspapers and other goods. This industry does not include revenue from soft drink producers that operate their own vending machines.

    Industry Products
  • Cold beverages
  • Candy, snacks and confections
  • Vended food
  • Hot beverages
  • Ice cream and frozen products
  • Sundries
  • Milk and dairy
  • Industry Activities
  • Retail sale of ice cream via vending machines
  • Retail sale of soft drinks via vending machines
  • Retail sale of hot drinks such as coffee via vending machines
  • Retail sale of fresh food via vending machines
  • Retail sale of snack food via vending machines
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Per capita soft drink consumption
  • World price of sugar
  • Demand from candy production
  • Demand from snack food production

  • Current Performance
  • Changing consumer tastes
  • Technological advances and consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Macroeconomic forces
  • Industry structure
  • Table: Vending Machine Operators Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Vending Machine Operators Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing In Canada
  • Wholesale Trade In Canada
  • Retail Trade In Canada
  • Transportation and Warehousing In Canada
  • Educational Services In Canada
  • Healthcare and Social Assistance In Canada
  • Consumers in Canada

  • Key Selling Industries
  • Bottled Water Production in Canada
  • Candy Production in Canada
  • Cigarette & Tobacco Manufacturing in Canada
  • Coffee & Tea Production in Canada
  • Food Service Contractors in Canada
  • Ice Cream Production in Canada
  • Juice Production in Canada
  • Snack Food Production in Canada
  • Soda Production in Canada

  • Products & Services
  • Cold beverages
  • Candy, snacks and confections
  • Vended food
  • Hot beverages
  • Other
  • Ice cream and frozen products
  • Milk and dairy
  • Sundries
  • Chart: Vending Machine Operators Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other
  • Manufacturing sites
  • Retail establishments
  • Offices
  • Educational institutions
  • Service establishments
  • Healthcare facilities
  • Chart: Major Market Segmentation for the Vending Machine Operators Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciationMarketingRentUtilitiesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Vending Machine Operators

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Vending Machine Operators Industry

  • Industry Globalization
    Compass Group Canada Ltd.,
  • Table: Compass Group Canada Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Vending Machine Operators Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Vending Machine Operators Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Per capita disposable income (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cashless Payment
  • For vending machines, cashless payments are performed with credit cards, debit cards or wireless devices.
  • North American Free Trade Agreement
  • A generally duty-free agreement signed by the governments of Canada, Mexico and the United States, creating a trilateral trade bloc in North America.
  • Point-Of-Sale System
  • The combined software and hardware, which usually includes a touch screen, used to complete a retail transaction.
  • What Our Customers Say

    Why buy this report?

    The Vending Machine Operators market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

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    This report on Vending Machine Operators:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Vending Machine Operators market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

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