Vending Machines of the Future: Whats driving this business model?

by Vanessa Lovie 27th of September, 2023

Vending Machines of the Future: Whats driving this business model?

When I came across a recent TikTok sharing how they thought Vending Machines would be one of the best and most lucrative businesses to enter in 2023 - I thought I would take a look at this business model and what we are seeing.

With less than 40 vending machines for sale, it's no wonder people are hunting. When you see very few businesses for sale in an industry it usually means one thing - owners are not willing to sell. If a business model works well, is lucrative or provides a good lifestyle - there are few drivers for an owner to part with their beloved business. A Vending Machine business whilst it may not be highly lucrative, it is a business model that can work well, if the machines are placed in good locations.

The demand for convenient, on-the-go snacks and beverages continues to surge. As people continue to lead busy lifestyles and want the conveniences that a vending machine offers, there will be a demand. According to a report by PR Newswire, "The global vending machine market was valued at $18.28 billion in 2019 and is anticipated to reach $25.25 billion by 2027, with a CAGR of 6.7% during the forecast period".

So what is driving the vending machine market and how will it be shaped with the advance in technology?

The Cashless Society

As Australians move towards a cashless society, the Reserve Bank of Australia (RBA) found that cash accounted for just 13 per cent of all payments made in 2022. The ability to tap our phones has become the ever-popular option for payment and there are predictions Australia will be a cashless society in just a few years time. Gone are the days of scrambling for coins to insert into a vending machine to get a can of soft drink. Now we can choose, tap and off we go.

The convenience and security offered by digital transactions have led to a decline in cash usage. This trend is rapidly influencing how vending machines operate and how consumers interact with them. Cashless payments have become the norm across various industries, and vending machines are no exception. With the advent of contactless cards, mobile wallets, and even cryptocurrency, vending machines are adapting to cater to the preferences of a digitally savvy consumer base.

This transition brings numerous benefits. For consumers, it means seamless transactions without the need for physical currency. For vending machine operators, it streamlines revenue collection and reduces the risks associated with handling cash or machines being broken into or stolen.

The Rise of Smart Vending Machines

One of the most significant advancements in the vending machine industry is the emergence of smart vending machines. Whilst we aren't seeing a lot in Australia yet they are coming. I've travelled throughout Japan and I can't wait to see that technology in Australia, with more snack, food and drink options. Hot noodles? no worries. 50 different kinds of beverages - take your pic. Australia has a long way to go in the Vending Machine game, but I think society is ready. The needs of consumers are central to all businesses, and vending machines are no exception.

What makes them different?

1. Personalized Experiences

Smart vending machines revolutionize the way consumers interact with these automated vendors. By harnessing data analytics, these machines can understand customer preferences and behaviours. This enables them to offer tailored product recommendations, promotions, and discounts. Such personalization not only heightens customer satisfaction but also cultivates loyalty, fostering repeat business.

2. Real-time Inventory Management

Gone are the days of manual stock checks and potential product shortages. Smart vending machines are equipped with real-time inventory tracking capabilities. This means that businesses can monitor stock levels dynamically. When supplies run low, the machine can alert operators or even autonomously reorder products. This feature minimizes the risk of stockouts or the sale of expired goods.

3. Valuable Business Insights

Beyond sales data and inventory management, smart vending machines are a treasure trove of valuable information. They can provide detailed analytics on customer demographics, purchasing patterns, and preferences. This data is invaluable for shaping marketing strategies and product development efforts. It empowers businesses to make informed decisions that drive growth and profitability.

4. Efficiency and Cost Savings

Smart vending machines go beyond the customer experience. They also bring operational benefits to businesses. These machines require less maintenance due to their advanced technology, reducing downtime and associated costs. Additionally, they can be remotely managed, saving time and resources.

5. Repairs and Maintenance

When the machine is in need of maintenance or repair it can seamlessly provide a report on the issue and schedule a technician. Reducing costs.

Here are some Vending Machines currently on the market

1. Novelty Vending Opportunity in Surry Hills, NSW

- Price: $37,290
- Summary: Join Novelty Vending! Operators wanted for an exclusive opportunity in Surry Hills, NSW. As an operator, you'll receive a fully equipped vending machine, exclusive rights to a prime location, and comprehensive business systems that ensure smooth operations.

View Listing

2. Profitable and Low-Effort Vending Business in Geelong, VIC

- Price: $26,400.00 + GST
- Summary: Looking for a profitable business opportunity that requires minimal effort? Consider SVA Vending! With over 17 years of industry experience, this Geelong-based vending business offers a rare opportunity for success.

View Listing

3. Resilient Vending Service Business in Brisbane, QLD

- Price: $399,000 + SAV
- Summary: This well-established Greater Brisbane vending service business has shown consistent sales growth for the past five years. With a high gross profit margin and low time input, it presents a lucrative opportunity for entrepreneurs in the Brisbane, QLD area.

View Listing

4. Homebased Non-Franchise Vending Business in Chittaway Bay, NSW

- Price: $120,000 plus SAV
- Summary: This homebased vending business, located in Central Coast/Newcastle, offers a non-franchise opportunity with 34 sited snack and drink combo machines. Boasting an average machine age of 14 years, this business presents a stable and potentially profitable venture in Chittaway Bay, NSW.

View Listing

With the increased integration of cashless payment methods and the advent of smart technology, these automated vendors are set to deliver unparalleled convenience, personalization, and efficiency. For businesses and consumers alike, the future of vending machines promises a revolution in the way we access and enjoy products on the go.

Tags: buying a business buyer