Decreasing Vending Machines, Peak 26 Years Ago: Manufacturers Find Venturing into Cashless Payments
Japan's vending machine numbers are declining, with peaks from 26 years ago, prompting manufacturers to innovate with cashless payment options.
Vending machines are a common presence throughout Japan, but recent trends show a decrease in their overall numbers, with the peak occurring in 2000 when approximately 5.6 million units were in operation. By 2024, this number diminished to 3.91 million, according to the Japan Automatic Merchandise System Industry Association. The types of products offered in vending machines also vary, with beverages making up 56.4% of sales, followed by automated services such as coin lockers, and a smaller percentage for everyday items and food.
Interestingly, the COVID-19 pandemic spurred an increase in vending machines selling frozen foods as a replacement for in-person sales, which has grown by over 10,000 units in the last decade, totaling 81,000 units. However, the growth appears to be stabilizing. In contrast, beverage vending machines have seen a significant decrease from their peak, with around 450,000 fewer units, now at 2.2 million. Industry insiders cite the rise of convenience stores and drugstores as a competitive disadvantage, particularly as these outlets begin offering fresh brewed coffee, which has impacted the sales of canned coffee traditionally popular in vending machines. Additionally, staffing shortages for restocking vending machines have led to a reduction in those that are not economically viable.
In response to these challenges, beverage manufacturers are turning to cashless payment options as a way to innovate and attract customers. As exemplified by Coca-Cola Japan’s initiatives since 2016, embracing technological advancements in payments may be key for the survival of vending machines in an increasingly competitive retail landscape.