Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Vending - UK - May 2009

The vending market for food, drink and cigarettes appears to have reached the lowest point of its development, with Mintel forecasting continued decline.

Recent years have seen a decline in the size of the installed base of machines with this also impacting on the value of sales. Much of the decline appears to be driven by increased competition from other methods of retailing, although since 2007 the impact of new regulations on healthy eating and smoking bans have added further to the woes of the market.

Despite these problems, the sector remains robustly confident with many operators looking to improve the overall vending experience as a way of retaining and growing their customer base.

Meeting changing consumer demands for beverages has been especially helpful for those in this sector of the market, where market value remains relatively strong. Similar moves have also been made in the food sector, although here a steep decline in installed capacity has hampered the market.

Main report issues
  • How can the industry respond to the impact of legislative changes?

  • How can it more closely reflect changes in the demands of consumers (such as demand for healthier food and drink)?

  • How can operators increase average volume and value sales?

  • How can operators increase the range of payment options?

  • How can those in the sector ensure that they engage with the most profitable segments in the consumer market?

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Issues in the Market

      • Main issues
        • Definition
          • Abbreviations
          • Future Opportunities

            • Will cool vending help rejuvenate the market?
              • Smart shoppers increasingly seek out value?
                • FSTR and HYPR – is this really what consumers want?
                • Market in Brief

                  • Vending market exhibiting signs of decline
                    • Efforts to increase value sales have some success
                      • Highly fragmented supply base despite some consolidation
                        • Driving consumers towards more profitable lines will require effort
                          • Long-term prospects rest with operators better understanding their market
                          • Internal Market Environment

                            • Key points
                              • Economic slowdown directly affects the vending sector
                                • Food and drink – strong demand could be tempered by legislative developments
                                  • Snacking remains popular with a hard core of adults
                                    • Move towards healthy eating set to change market
                                      • Cigarette market in long-term decline
                                        • Figure 1: UK retail sales of cigarettes, by volume, 2004-09
                                      • Cigarette vending machines take a reduced profile
                                        • Figure 2: UK retail distribution of duty-paid cigarettes, by value, 2005 and 2007
                                      • Further restrictions likely
                                        • Technical developments
                                        • Broader Market Environment

                                          • Key points
                                            • Slowdown in PDI growth set to impact on consumer expenditure
                                              • Figure 3: Trends in personal disposable income and consumer expenditure, 2004-14
                                            • The age structure of the population
                                              • Figure 4: Trends in the age structure of the UK population, by gender, 2004-14
                                            • Rising numbers of ABs may dent vending machine use
                                              • Figure 5: Forecast adult population trends, by socio-economic group, 2004-14
                                          • Competitive Context

                                            • Key points
                                              • Water, juice and coffee all benefit from changing tastes
                                                • Figure 6: Performance in key markets, 2003-08
                                              • Health issues dominate the cold drinks sector
                                                • Crisps, chocolate and confectionery record sluggish performance
                                                • Strengths and Weaknesses in the Market

                                                  • Strengths
                                                    • Weaknesses
                                                    • Who’s Innovating?

                                                      • Key points
                                                        • Environmental developments stimulate activity
                                                          • Moves to make machines easier to use
                                                            • Security concerns for the tobacco sector
                                                              • Broadening what’s on offer
                                                              • Market Size and Forecast

                                                                • Key points
                                                                  • A saturated market under pressure
                                                                    • Figure 7: UK vending market, by volume and value, 2004-14
                                                                  • Installed vending base is in decline
                                                                    • Moves to add value are assisting the sector
                                                                      • Vending sector to adapt to changing lifestyles
                                                                        • Looking towards the high street for direction
                                                                          • Factors used in the forecast
                                                                          • Segment Performance

                                                                            • Key points
                                                                              • Coin-operated systems retain dominance
                                                                                • Figure 8: Vending payment systems, market share by volume, 2004-09
                                                                              • Confectionery, snacks and meals see strongest growth
                                                                                • Figure 9: UK vending market, by sector, by value, 2004-08
                                                                              • Market maturity hits volume sales
                                                                                • Figure 10: UK vending market, by sector, by number of machines, 2004-08
                                                                              • Drinks market show signs of recession
                                                                                • Figure 11: UK drinks vending market, by volume and value, 2004-09
                                                                              • Traditional vending is back
                                                                                • Figure 12: Number of UK drinks vending machines, by dispensing method, 2004-08
                                                                              • Coffee and cold drinks benefit most
                                                                                • Figure 13: Vended drink cup sales, by product, 2004-08
                                                                              • Confectionery, snacks and meals records strong value development
                                                                                • Figure 14: UK vended confectionery, snacks and meals market, by volume and value, 2004-09
                                                                              • Confectionery and snacks dominate the market
                                                                                • Figure 15: Number of UK confectionery, snacks and meals vending machines, by type of food dispensed, 2004-08
                                                                              • Cigarette vending suffering
                                                                                • Figure 16: UK vended cigarettes market, by volume and value, 2004-09
                                                                            • Companies and Products

                                                                              • Key points
                                                                                • Three operators lead a highly fragmented market
                                                                                  • Figure 17: UK vending operator market shares, by installed base of machines, 2007 and 2009
                                                                                • Industry structure
                                                                                  • Figure 18: Selected leading companies in the UK vending market, 2009
                                                                                • Manufacturers and brands
                                                                                  • Autobar
                                                                                    • Bunzl Vending Services
                                                                                      • Cherwell Group
                                                                                        • Manchester Vending Services Ltd
                                                                                          • Selecta UK
                                                                                          • Buying Behaviour – Existing and Potential

                                                                                            • Key points
                                                                                              • Drinks, confectionery and snacks dominate the market
                                                                                                • Figure 19: Products bought from a vending machine, February 2009
                                                                                              • The vending profile
                                                                                                • Diversifying perceptions and the user base
                                                                                                  • A bit of retail theatre
                                                                                                    • Is there potential for high-value items?
                                                                                                      • Figure 20: Products consumers haven’t bought but would consider buying, and products consumers would never buy from a vending machine, February 2009
                                                                                                    • Limited choice and the no-frills model
                                                                                                      • The premium profile
                                                                                                        • Exclusive + cutting edge + paying a premium = London baby!
                                                                                                          • Could women’s intuition be wrong?
                                                                                                          • Views on Vending

                                                                                                            • Key points
                                                                                                              • Vending viewed as a last resort
                                                                                                                • Figure 21: General attitudes towards vending machines, February 2009
                                                                                                              • No comparison to women’s retail therapy
                                                                                                                • Age aversion explained
                                                                                                                  • When behaviour meets attitude
                                                                                                                    • The fruit buyers
                                                                                                                      • Personal hygiene buyers
                                                                                                                        • Potential buyers of clothes, CDs/DVDs and computer consoles
                                                                                                                        • Broadening Range and Usage

                                                                                                                          • Key points
                                                                                                                            • Vending machine attitudinal groups
                                                                                                                              • Figure 22: Vending machine attitudinal groups, February 2009
                                                                                                                            • Positive Progressives
                                                                                                                              • Silent Progressives
                                                                                                                                • Hostiles
                                                                                                                                  • Industry advances – could they pay off?
                                                                                                                                    • Figure 23: Type of products bought from vending machines in the past 12 months, by attitudinal groups, February 2009
                                                                                                                                  • Range and diversity
                                                                                                                                    • Figure 24: Number of products bought from vending machines in the past 12 months, by type of product bought, February 2009
                                                                                                                                  • A healthy alternative
                                                                                                                                    • Hot drinks, hot target
                                                                                                                                      • Fulfilling a need
                                                                                                                                      • Appendix – Buyer Behaviour – Existing and Potential

                                                                                                                                          • Figure 25: Products bought from a vending machine, by demographics, February 2009
                                                                                                                                          • Figure 26: Products bought from a vending machine, by demographics, February 2009
                                                                                                                                          • Figure 27: Products bought from a vending machine, by demographics, February 2009
                                                                                                                                          • Figure 28: Products haven’t bought but would consider buying from a vending machine, by demographics, February 2009
                                                                                                                                          • Figure 29: Products haven’t bought but would consider buying from a vending machine, by demographics, February 2009
                                                                                                                                          • Figure 30: Products haven’t bought but would consider buying from a vending machine, by demographics, February 2009
                                                                                                                                          • Figure 31: Products would never buy from a vending machine, by demographics, February 2009
                                                                                                                                          • Figure 32: Products would never buy from a vending machine, by demographics, February 2009
                                                                                                                                          • Figure 33: Products would never buy from a vending machine, by demographics, February 2009
                                                                                                                                      • Appendix – Views on Vending

                                                                                                                                          • Figure 34: General attitudes towards vending machines, by demographics, February 2009
                                                                                                                                          • Figure 35: General attitudes towards vending machines, by demographics, February 2009
                                                                                                                                          • Figure 36: General attitudes towards vending machines, by products bought, February 2009
                                                                                                                                          • Figure 37: General attitudes towards vending machines, by products bought, February 2009
                                                                                                                                          • Figure 38: General attitudes towards vending machines, by products would consider buying, February 2009
                                                                                                                                          • Figure 39: General attitudes towards vending machines, by products would consider buying, February 2009
                                                                                                                                          • Figure 40: General attitudes towards vending machines, by products would consider buying, February 2009
                                                                                                                                      • Appendix – Broadening Range and Usage

                                                                                                                                          • Figure 41: General attitudes towards vending, by vending machine attitudinal groups, February 2009
                                                                                                                                          • Figure 42: Vending machine attitudinal groups, by demographics, February 2009
                                                                                                                                          • Figure 43: Vending machine attitudinal groups, by products purchased in the last 12 months, February 2009
                                                                                                                                          • Figure 44: Vending machine attitudinal groups, by repertoire of use, February 2009
                                                                                                                                          • Figure 45: Repertoire of products purhcased from a vending machine in the last 12 months by products purchased, February 2009
                                                                                                                                          • Figure 46: Number of products bought from vending machines in the past 12 months by demographics, February 2009

                                                                                                                                      Companies Covered

                                                                                                                                      • Aimia Foods
                                                                                                                                      • Aldi Stores Ltd (UK & Ireland)
                                                                                                                                      • Asda Group Ltd
                                                                                                                                      • Automatic Vending Association
                                                                                                                                      • Bank of England
                                                                                                                                      • British Market Research Bureau (BMRB)
                                                                                                                                      • British Sky Broadcasting Group plc (BSkyB)
                                                                                                                                      • Bunzl Vending Services
                                                                                                                                      • Cadbury Schweppes Plc
                                                                                                                                      • Co-operative Group
                                                                                                                                      • Coca-Cola GB
                                                                                                                                      • Compass Group Plc
                                                                                                                                      • Costa
                                                                                                                                      • Del Monte Foods
                                                                                                                                      • Government Actuary's Department (GAD)
                                                                                                                                      • J. Sainsbury
                                                                                                                                      • Kraft Foods UK
                                                                                                                                      • Lidl (UK)
                                                                                                                                      • Marks & Spencer
                                                                                                                                      • Nestlé UK Ltd
                                                                                                                                      • Office for National Statistics
                                                                                                                                      • Pepsi-Cola UK
                                                                                                                                      • Starbucks Coffee Company UK Ltd
                                                                                                                                      • Tesco Plc
                                                                                                                                      • Tetley Group
                                                                                                                                      • Tobacco Manufacturers Association
                                                                                                                                      • Travelodge
                                                                                                                                      • United Biscuits
                                                                                                                                      • Virgin Media Ltd
                                                                                                                                      • Waitrose
                                                                                                                                      • Wm Morrison Supermarkets

                                                                                                                                      Vending - UK - May 2009

                                                                                                                                      £1,995.00 (Excl.Tax)