Automatic Vending - 2010

• Publication date: February 2010

Key Note estimates that the UK market for products sold via automatic vending machines fell in value by 4% in 2009 to £1.94bn. The number of refreshment vending machines in operation in the UK is estimated at 468,000 in 2009 with the number of cigarette machines put at around 69,000. In 2009, retail sales of refreshment vended products accounted for an estimated 1.9% of household expenditure on food and non-alcoholic beverages. Cigaret...

Key Note estimates that the UK market for products sold via automatic vending machines fell in value by 4% in 2009 to £1.94bn. The number of refreshment vending machines in operation in the UK is estimated at 468,000 in 2009 with the number of cigarette machines put at around 69,000. In 2009, retail sales of refreshment vended products accounted for an estimated 1.9% of household expenditure on food and non-alcoholic beverages. Cigarettes purchased through vending machines in 2009 are estimated to have accounted for around 0.8% of the overall 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 vending machines. The refreshment machines sector includes sales of hot and cold drinks, snacks, confectionery, sandwiches and meals and is the largest segment of the market. The cigarette vending machine market has been affected by a number of adverse factors in recent years including: the UK ban on smoking in enclosed places; reductions in the number of public houses in the UK; and falls in the numbers of people smoking. The category of other vending machines covers a wide range of non-food and non-beverage items, such as personal care products and condoms, DVDs, photos, stationery and computer accessories, etc.

2009 was a difficult year for many automatic vending companies. The recession affected demand for services in important sectors for vending such as manufacturing, banks and financial institutions, all of which were affected by staff redundancies and company closures. There has also been a steady reduction in the numbers of refreshment vending machines installed in the UK since 2005, that has affected the potential for sales growth and the poor image which vending has among some consumer groups has further hampered the scope for market expansion.

The Government's Health Bill 2009, which became law in November 2009, contains provisions which ban the sale of cigarettes from vending machines. The ban will come into place in October 2011 and will have a serious impact on companies which supply the cigarette vending market. Company closures and redundancies are expected. The ban on cigarette vending machines has been introduced because it gave under-aged smokers access to cigarettes and was viewed as being a loophole in the UK's safeguards against tobacco smokers.

The UK economy is forecast to return to growth in 2010 and the automatic vending markets for refreshments and other vended products are expected to benefit from this. On the downside, the projected rise in unemployment in the UK, a still generally weak economic environment, poor image and the absence of any major market growth segments within the vending sector suggest that the rate of growth for these sectors in 2010 will only be modest. 
 

Caring Services Industry in the United Kingdom

Executive Summary

1. Market Definition

REPORT COVERAGE
MARKET SECTORS
Refreshment Machines
Cigarette/Tobacco Machines
Other Machines
MARKET TRENDS
Recession Affects the Automatic Vending Sector
Number of Vending Machines in Use Continues to Fall
UK Trade Deficit in Automatic Vending Machines Widens Further
Negative Image of Vending
Health Bill 2009 Bans Cigarette Vending Machines
ECONOMIC TRENDS
Gross Domestic Product
Table 1.1: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2004-2008
Population
Table 1.2: UK Resident Population Estimates by Sex (000), Mid-Years 2004-2008
Inflation
Table 1.3: UK Rate of Inflation (%), 2004-2008
Unemployment
Table 1.4: Actual Number of Unemployed Persons in the UK (million), 2004-2008
Household Disposable Income
Table 1.5: UK Household Disposable Income Per Capita (£), 2004-2008
MARKET POSITION
The UK
Table 1.6: UK Sale of Automatic Refreshment Vended Products and Household Expenditure on Food and Non-Alcoholic Beverages by Value at Current Prices (£bn at rsp and %), 2005-2009
Overseas

2. Market Size

THE TOTAL MARKET
Table 2.1: The Total UK Automatic Vending Machine Market by Value at Current Prices (£m at rsp), 2005-2009
Figure 2.1: The Total UK Automatic Vending Machine Market by Value at Current Prices (£m at rsp), 2005-2009
BY MARKET SECTOR
Refreshment Machines
By Volume
Table 2.2: Number of Refreshment Vending Machines in the UK, 2005-2009
Payment Systems
Table 2.3: Refreshment Vending Machines in the UK by Type (% of total), 2007 and 2008
By Value
Table 2.4: The UK Automatic Vending Machine Refreshments Sector by Value at Current Prices (£m at rsp and %), 2005-2009
Cigarette Tobacco Machines
By Volume
Table 2.5: Estimated Number of Refreshment Machines and Cigarette/Tobacco Machines in Use in the UK, 2005-2009
Table 2.6: Estimated Number of Cigarettes Sold in Vending Machines in the UK (million), 2005-2009
By Value
Table 2.7: The UK Cigarette/Tobacco Machines Sector by Value at Current Prices (£m at rsp and %), 2005-2009
Other Vending Machines
By Value
Table 2.8: The UK Automatic Vending Machine ‘Other Products’ Sector by Value at Current Prices (£m at rsp and %), 2005-2009
OVERSEAS TRADE
General Overview
Table 2.9: UK Overseas Trade in Automatic Vending Machines (£000), 2005-2009
Table 2.10: UK Overseas Trade in Automatic Vending Machines by Region (£000), 2008 and 2009
Imports
Table 2.11: Leading Sources of Imports for Automatic Vending Machines by Value (£000 and %), 2008 and 2009
Exports
Table 2.12: Leading UK Export Markets for Automatic Vending Machines (£000 and %), 2008 and 2009

3. Industry Background

RECENT HISTORY
NUMBER OF COMPANIES
Table 3.1: Number of VAT- and/or PAYE-Based Enterprises Engaged in Other Non-Store Retail Sales by Turnover Sizeband (£000, number and %), 2009
EMPLOYMENT
Table 3.2: Number of VAT- and/or PAYE-Based Enterprises Engaged in Other Non-Store Retail Sales by Employment Sizeband (number and %), 2009
REGIONAL VARIATIONS IN THE MARKETPLACE
Table 3.3: Number of VAT- and/or PAYE-Based Enterprises Engaged in Other Non-Store Retail Sales by Government Regional Office (number and %), 2009
DISTRIBUTION
HOW ROBUST IS THE MARKET?
Table 3.4: Number of VAT- and/or PAYE-Based Enterprises Engaged in Other Non-Store Retail Sales by Age of Business (number and %), 2009
LEGISLATION
Water
Tobacco Vending Machines
Restriction of Hazardous Substances Regulations/Hazardous
Waste Regulations
Environmental Management Systems
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
Azkoyen UK Ltd
Crane Merchandising Systems Ltd
DarenthMJS Ltd
N&W Global Vending Ltd
Photo-Me International PLC
Westomatic Vending Services Ltd
Wrigley Candy UK
SELECTED MACHINE OPERATORS AND DISTRIBUTORS
Autobar Group Ltd
Bunzl Vending Services Ltd
Selecta UK Ltd
Sinclair Collis Ltd
SnackTime PLC
Other Selected Suppliers
Aramark UK
Fags (Machines) Ltd
The RefreshU Group
Sodexo Vending Ltd
SSL International PLC
The Vending Corporation Ltd
UK Vending Ltd
COMMODITY AND MERCHANDISE SUPPLIERS
Aimia Foods Ltd
Bunzl Catering Supplies
Chequer Foods Ltd
Eurogran A/S
DISPOSABALES AND COMPONENTS
Brulines Group PLC
Huhtamaki UK Ltd
MEI UK International Ltd
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 6.1: Average Weekly Expenditure by Households on Contract Catering, Workplace Meals and School Meals (£), Years Ending March 2004/2005 and 2005/2006 and Years Ending December 2006, 2007 and 2008
Education
Vending in English Secondary Schools
Table 6.2: Reasons Why Schools Did Not Have Vending Provision (% of responding schools), academic years 2006/2007 and 2007/2008
Table 6.3: Reasons Why Schools Did Have Vending Provision (% of responding schools), academic years 2006/2007 and 2007/2008
Table 6.4: Changes to Vending Provision Made by Schools with Vending (% of schools with vending provision), academic years 2006/2007 and 2007/2008
Fourth Annual Survey of Take-Up of School Meals in England
Public Backs New Plans to Protect Children from Tobacco
Table 6.5: Support for Smoking Ban, Cigarette Vending Machine Ban and Putting Tobacco Out of Sight in Shops (% of adults), June 2009
Eating Out Trends
Table 6.6: Penetration of Adults Visiting Takeaway Coffee Shops and Takeaway Sandwich Bars in the Last 12 Months (% of adults), 2009

7. Current Issues

EUROPE
Contactless Payment Systems
INTERNATIONAL
US Healthcare Bill Affects Vending Sector
POLITICS
Cigarette Machines Banned
Impact of the Removal of Cigarette Machines
HEALTH
Vended Foods in Welsh NHS Hospitals
Negative Image of Vending
CORPORATE ACTIVITY
The Autobar Group
Azkoyen SA
Eurogran A/S
SnackTime PLC
Vianet Group PLC
LEGISLATION
Revisions of the WEEE and RoHS Directives Proposed
ENVIRONMENT
Environmental Management System

8. The Global Market

INTRODUCTION
THE US
By Value
Table 8.1: US Automatic Vending Industry Revenues ($bn), 2004-2008
Table 8.2: Estimated US Vending Sales by Category ($bn), 2004-2008
By Volume
Table 8.3: Number of Vending Machines Installed in the US by Selected Category (000), 2004-2008
Table 8.4: US Automatic Vending Machines by Location (%), 2004-2008
Table 8.5: Most Frequent Strategies for Handling Higher Costs by the US Automatic Vending Machines Operators by Strategy (% of operators), 2008
JAPAN
EUROPE

9. Forecasts

THE ECONOMY
Gross Domestic Product
Table 9.1: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2009-2013
Inflation
Table 9.2: Forecast UK Rate of Inflation (%), 2009-2013
Unemployment
Table 9.3: Forecast Actual Number of Unemployed Persons in the UK (million), 2009-2013
Population
Table 9.4: Forecast UK Resident Population by Sex (000), Mid-Years 2009-2013
FORECASTS 2010 TO 2014
Table 9.5: The Forecast UK Automatic Vending Machines Market by Value at Current Prices (£m at rsp), 2010-2014
By Market Sector
Refreshment Machines
Table 9.6: The Forecast UK Automatic Vending Machines Market by Sales of Refreshment Products at Current Prices (£m at rsp), 2010-2014
Cigarette and Tobacco Machines
Table 9.7: The Forecast UK Automatic Vending Machines Market by Sales of Cigarette/Tobacco Products at Current Prices (£m at rsp), 2010-2014
Other Vending Machines
Table 9.8: The Forecast UK Automatic Vending Machines Market by Sales of Other Products at Current Prices (£m at rsp), 2010-2014
MARKET GROWTH
Figure 9.1: Total Market Growth for the UK Automatic Vending Machines Market by Value at Current Prices (£m at rsp), 2005-2014
FUTURE TRENDS
Consolidation in the Vending Industry
Poor Image of Automatic Vending a Barrier to Growth
US Vending Legislation Requirements

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
General Sources
Government Publications
Other Publications
Key Note Sources
Understanding TGI Data
Number, Profile, Penetration
Social Grade
Standard Region
Key Note Research
The Key Note Range of Reports