Automatic Vending- 2009 Edition

• Publication date: February 2009

The author estimates that the UK market for products sold via automatic vendingmachines increased in value by 3.5% in 2008, to £2.02bn. The number ofrefreshment vending machines in operation in the UK is estimated at 509,610in 2008, with the number of cigarette machines put at around 78,000,according to an estimate from the Department of Health’s 2008 Consultationon the Future of Tobacco Control. In 2008, retail sales of automati...

The author estimates that the UK market for products sold via automatic vendingmachines increased in value by 3.5% in 2008, to £2.02bn. The number ofrefreshment vending machines in operation in the UK is estimated at 509,610in 2008, with the number of cigarette machines put at around 78,000,according to an estimate from the Department of Health’s 2008 Consultationon the Future of Tobacco Control. In 2008, retail sales of automatically vendedrefreshment products accounted for an estimated 2% of householdexpenditure on food and non-alcoholic beverages. Cigarettes purchasedthrough vending machines are estimated to represent around 1% of theoverall UK cigarette retail market by volume.

The three main sectors of the automatic vending machine market are:refreshment machines; cigarette and tobacco machines; and other vendingmachines. The refreshment machines sector includes sales of hot and colddrinks, snacks, confectionery, sandwiches and meals, and comprises the largestsegment of the market. The cigarette/tobacco vending machine sector issubject to a range of negative influences that are adversely affecting sales,including steady falls in the numbers of smokers in the UK and the UK ban onsmoking in enclosed places. A wide range of non-food and non-beverage itemsare covered by the other vending machines sector, such as personal careproducts and condoms, DVDs, photos, stationery and computer accessories, etc.This is considered to be the fastest-growing sector of the market, owing toincreases in the number of retail products that are sold in this way.

The British Dental Health Foundation, a leading UK oral health charity, hasjoined the growing list of organisations that are calling for a UK-wide ban onthe sales of fizzy drinks and sugary snacks from vending machines onhealthcare premises. These products have already been banned and removedfrom vending machines in UK schools, and some health authorities in Scotlandand the Welsh Assembly have now decided to ban them from healthestablishments under their jurisdiction. A UK-wide ban may be a possibility inthe future.

A possible ban on the sale of cigarettes and tobacco from vending machines isstill being considered by the Government. Vending machines are a popularsource of cigarettes for under-aged smokers, and various pressure groups areurging the Government to introduce a ban on the machines in order to removethis source of access. The Government is considering a number of options,including banning vending machines altogether or using systems that onlyallow adult purchases.

The UK economy is facing a difficult year in 2009, and the automatic vendingindustry is unlikely to escape unscathed from its impact. Consolidation in thevending market itself is a possibility, while company closures and short-timeworking may affect the vending operators and suppliers who service thecompanies that use vending machines. On the more positive side, many vendedproducts including drinks and snacks are fairly inexpensive and, as such, theirpurchase may not be too badly affected by the recession.Automatic Vending Executive Summary© 
 

Machine Tool And Equipment Industry in the United Kingdom

Executive Summary

1. Market Definition

REPORT COVERAGE

MARKET SECTORS

Refreshment Machines

Cigarette/Tobacco Machines

Other Machines

MARKET TRENDS

Banks Support Purchase of N&W Global Vending

Differing Trends in Numbers and Type of Refreshment Vending Machines in Use

Vending Operators Support Ethical Trading

Calls for Ban on Fizzy Drinks and Sugary Snacks on Healthcare and Education

Premises

UK Trade Deficit in Automatic Vending Machines Widens

ECONOMIC TRENDS

Gross Domestic Product

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

2003-2007

Population

Table 2: UK Resident Population Estimates by Sex (000), Mid-Years 2003-2007

Inflation

Table 3: UK Rate of Inflation (%), 2003-2007

Unemployment

Table 4: Actual Number of Unemployed Persons (million), 2003-2007

Household Disposable Income

Table 5: Household Disposable Income Per Capita (£), 2003-2007

MARKET POSITION

The UK

Table 6: UK Sale of Automatically Vended Refreshment Products and Household

Expenditure on Food and Non-Alcoholic Beverages by Value

at Current Prices (£bn at rsp and %), 2004-2008

Overseas

2. Market Size

THE TOTAL MARKET

Table 7: The Total UK Automatic Vending Machine Market by Value at Current

Prices (£m at rsp), 2004-2008

BY MARKET SECTOR

Refreshment Machines

By Volume

Table 8: Number of Refreshment Vending Machines in the UK, 2004-2008

By Value

Table 9: The UK Automatic Vending Machine Refreshments Sector by Value

at Current Prices (£m at rsp and %), 2004-2008

Cigarette/Tobacco Machines

By Volume

Table 10: Estimated Number of Cigarette/Tobacco Machines in Use in the UK,

2004-2008

Table 11: Estimated Number of Cigarettes Sold in Vending Machines in the UK

(million), 2004-2008

By Value

Table 12: The UK Cigarette/ Tobacco Machines Sector by Value at Current Prices

(£m at rsp and %), 2004-2008

Other Vending Machines

By Value

Table 13: The UK Other Vending Machines Sector by Value

at Current Prices (£m at rsp and %), 2004-2008

OVERSEAS TRADE

General Overview

Table 14: UK Overseas Trade in Automatic Vending Machines (£000), 2004-2008

Table 15: UK Overseas Trade in Automatic Vending Machines by Region (£000), 2007

and 2008

Imports

Table 16: Leading Sources of Imports for Automatic Vending Machines by Value

(£000), 2007 and 2008

Exports

Table 17: Leading UK Export Destinations for Automatic Vending Machines

by Value (£000), 2007 and 2008

3. Industry Background

RECENT HISTORY

NUMBER OF COMPANIES

Table 18: Number of VAT- and/or PAYE-Based Enterprises Engaged in Other

Non-Store Retail Sales by Turnover Sizeband (£000 and %), 2008

EMPLOYMENT

Table 19: Number of VAT- and/or PAYE-Based Enterprises Engaged in Other

Non-Store Retail Sales by Employment Sizeband (number and %), 2008

REGIONAL VARIATIONS IN THE MARKETPLACE

Table 20: Number of VAT- and/or PAYE-Based Enterprises Engaged in Other

Non-Store Retail Sales by Government Regional Office (number and %), 2008

DISTRIBUTION

HOW ROBUST IS THE MARKET?

Table 21: Number of VAT- and/or PAYE-Based Enterprises Engaged in Other

Non-Store Retail Sales by Age of Business (number and %), 2008

LEGISLATION

Restriction of Hazardous Substances Regulations

Hazardous Waste Regulations

Minimum Nutritional Standards for Schools

Tobacco Vending Machines

KEY TRADE ASSOCIATIONS

Associated Vending Services Ltd

Automatic Vending Association

British Water Cooler Association

National Association of Cigarette Machine Operators

National Independent Vending Operators Group

Overseas Associations

European Bottled Watercooler Association

European Vending Association

National Automatic Merchandising Association

Worldwide Vending Association

4. Competitor Analysis

THE MARKETPLACE

SELECTED MACHINE AND PARTS MANUFACTURERS

Autonumis Ltd

Azkoyen UK Ltd

Crane Merchandising Systems Ltd

DarenthMJS Ltd

Mars Sugar UK

N&W Global Vending Ltd

Photo-Me International PLC

The Vending Corporation Ltd

Westomatic Vending Services Ltd

SELECTED MACHINE OPERATORS AND DISTRIBUTORS

Autobar Group Ltd

Bunzl Vending Services Ltd

Selecta UK Ltd

Sinclair Collis Ltd

Other Selected Suppliers

COMMODITY AND MERCHANDISE SUPPLIERS

Aimia Foods Ltd

Bunzl Catering Supplies

Chequer Foods Ltd

Eurogran A/S

DISPOSABALES AND COMPONENTS

BT Redcare

Huhtamaki UK Ltd

MEI UK International Ltd

Vianet Group PLC

OUTSIDE SUPPLIERS

MARKETING ACTIVITY

UK Exhibitions

Overseas Exhibitions

5. Strengths, Weaknesses, Opportunities and Threats

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

6. Buying Behaviour

CONSUMER PENETRATION

Household Expenditure

Table 22: UK Average Weekly Expenditure by Households on Workplace Meals,

State School Meals and Contract Catering (£), Years Ending March 2004-2006

and Years Ending December 2006 and 2007

Smoking

Table 23: UK Average and Total Weekly Household Expenditure on Cigarettes

(£ and £m), Years Ending March 2003-2006 and Years Ending December 2006

and 2007

Table 24: Prevalence of Smoking in England by Age (% of adults), 2006

Table 25: Prevalence of Smoking by Government Office Region in England

(% of adults), 2006

Table 26: Vending Machines as Source of Cigarettes for Regular Smokers

Aged 11-15 (% of all sources), 2000, 2002, 2004 and 2006

Eating Out Trends

Table 27: Penetration of Adults Eating Out at Lunchtime in the Last Month

(% of adults), Year Ending March 2008

7. Current Issues

EUROPE

Vending Machines Get Energy Labels

Labelling of Allergens

EU Calls for Fruit and Vegetables to be Stocked in Vending Machines

POLITICS

The Future of Tobacco Control

Reducing Availability of Tobacco Products and Regulating Supply

The British Dental Health Foundation Calls for Vending Ban

Welsh Assembly Ends Hospital Junk Food Vending

NEW PRODUCT DEVELOPMENTS

Entertainment

CORPORATE ACTIVITY

THE ENVIRONMENT

Mars Develops N-viro Cups

Responsible Vending

WEEE and c10c

ETHICAL TRADING

Rainforest Alliance

8. The Global Market

INTRODUCTION

THE US

By Volume

Table 28: Number of Vending Machines Installed in the US by Type (000),

2004-

Table 29: US Automatic Vending Machines by Location (%), 2004 -2007

By Value

Table 30: US Automatic Vending Industry Revenues ($bn), 2003-2007

Table 31: Estimated US Vending Sales by Category ($bn), 2003-2007

JAPAN

EUROPE

9. Forecasts

THE ECONOMY

Gross Domestic Product

Table 32: Forecast UK Growth in Gross Domestic Product

in Real Terms (%), 2008-2012

Inflation

Table 33: Forecast UK Rate of Inflation (%), 2008-2012

Unemployment

Table 34: Forecast Actual Number of Unemployed Persons (millions) 2008-2012

Population

Table 35: Forecast UK Resident Population by Sex (000), Mid-Years 2008-2012

FORECASTS 2009 TO 2013

Table 36: The Forecast Total UK Automatic Vending Machine Market by Sector

by Value at Current Prices (£m at rsp), 2009-2013

Refreshment Machines

Table 37: The Forecast UK Refreshment Machines Sector by Value at Current Prices

(£m at rsp), 2009-2013

Cigarette/Tobacco Machines

Table 38: The Forecast UK Cigarette/Tobacco Machines Sector

by Value at Current Prices (£m at rsp), 2008-2012

Other Vending Machines

Table 39: The Forecast UK Other Vending Machines Sector by Value at Current Prices

(£m at rsp), 2009-2013

MARKET GROWTH

Figure 1: Growth in the Total UK Automatic Vending Machine Market by Value

at Current Prices (£m at rsp), 2004-2013

FUTURE TRENDS

Calls to Ban Unhealthy Vending Machines in Hospitals

Consolidation in the Vending Industry

Vended Ethical Product Sales Expected to Rise

10. Company Profiles

AUTOBAR GROUP LTD

BUNZL VENDING SERVICES LTD

CRANE MERCHANDISING SYSTEMS LTD

SELECTA UK LTD

SINCLAIR COLLIS LTD

WESTOMATIC VENDING SERVICES LTD

11. Further Sources

Associations

Publications

General Sources

Government Publications

Other Sources

Key Note Sources

Understanding TGI Data

Number, Profile, Penetration

Social Grade

Standard Region

Key Note Research

The Key Note Range of Reports

Machine Tool and Equipment in United Kingdom

United Kingdom Heavy Truck Production, Units, Mn

• $ 250
• Industry data
• January 2013

Yearly, From 2006 To 2017
By Business Monitor International
Source: OICA/BMI

• Industries : Machine Tool and Equipment
• Countries : United Kingdom

United Kingdom Heavy Truck Production, Units, % Chg Y-o-y

• $ 250
• Industry data
• January 2013

Yearly, From 2001 To 2017
By Business Monitor International
Source: OICA/BMI

• Industries : Machine Tool and Equipment
• Countries : United Kingdom

United Kingdom Heavy Truck Production, Units, % Of Domestic Heavy Truck Unit Sales

• $ 250
• Industry data
• January 2013

Yearly, From 2008 To 2017
By Business Monitor International
Source: OICA/BMI

• Industries : Machine Tool and Equipment
• Countries : United Kingdom

United Kingdom Heavy Truck Production, Units

• $ 250
• Industry data
• January 2013

Yearly, From 2000 To 2017
By Business Monitor International
Source: OICA/BMI

• Industries : Machine Tool and Equipment
• Countries : United Kingdom

United Kingdom Heavy Truck Trade Balance, Units

• $ 250
• Industry data
• January 2013

Yearly, From 2008 To 2017
By Business Monitor International
Source: BMI

• Industries : Machine Tool and Equipment
• Countries : United Kingdom