The AVA has announced the findings from its 2015 UK Vending Industry Census.
UK vending industry turnover has stabilised at £1.5bn.
Using data and insights gathered from a wide range of industry sources including operators, manufacturers and suppliers, the latest annual industry census offers an authentic picture of the UK vending industry today.
The major highlight of the census report was the encouraging news that the UK vending industry turnover has stabilised, with the hot beverage machine market showing marginal growth for the first time since 2004, driven primarily by the growth in bean-to-cup machines.
Hot beverage market shows marginal growth for the first time since 2004.
This growth, together with the first increase in the average price of hot beverages since 2011, has helped compensate for consumption levels, which have continued to decline. An average hot drink machine now dispenses 282 units per week compared to 385 units per week in 2005.
While the volume of units consumed has fallen, the consumer preference for high quality beverages, larger cups and fresh milk is still high, as the High Street remains the main trend-setter for hot beverages with the ongoing premiumisation of vended coffee.
14% of snacks sold in 2015 were categorised as ‘healthy.’
Healthier products are also experiencing growing popularity and in 2015, 39 per cent of cold drinks sold were low sugar and 14 per cent of snacks sold were of a healthier variety, including those labelled low calorie, diet and low in sugar.
Vending machine design is also undergoing a transformation as the industry continues to innovate with the number of screens used for on-machine advertising doubling in the last 12 months.
The report identified a number of key challenges that the industry currently faces including the National Living Wage, which is set to be £9 per hour by 2020, a figure that many believe will lead to further price increases and efficiency drives.
The government’s recently proposed sugar tax and the ongoing media scrutiny of the ‘healthiness’ of vended products were also identified as key concerns.
Jonathan Hart, Chief Executive of the AVA, told PV ‘it’s encouraging to see that industry turnover has stabilised to £1.5 billion in 2015, and popular trends like high street style coffee and healthier vending products continue to thrive. There are also great examples of innovation and opportunity within the industry, particularly in relation to technology and design as contactless payments and touch screens become more widespread.’
The 2015 Census was compiled by Martin Colston, former Global Strategic Insight Director for Mars Drinks, who has over 30 years’ experience in the vending industry. ‘In the course of carrying out the Census, I’ve contacted many AVA members and I’ve been extremely impressed with their passion, dedication, drive to improve and many examples of innovation’, he said. ‘I’m more optimistic about the outlook for the industry than I have been in a decade.’
*Do your own experiences of the marketplace square up with the census? Do let us know.
