NEWS | Industry Updates
What’s changing the vending landscape – AVA insights
Micro markets are a rapidly growing trend in the vending and automated retail sector, as are advancements in the latest vending software and telemetry. Here the Vending & Automated Retail Association offers some insight into the state of play within these two key sectors.
Micro markets The growth of micro markets, continues to surge, driven by increasing demand for convenient, automated retail experiences in closed environments such as workplaces, universities, apartment complexes, and hotels. These small, self-service stores offer a range of products displayed on open shelves, in chiller cabinets, or fridges, allowing consumers to select items as they would in a traditional store. Payments are made via unattended tills or smartphone apps, making the shopping experience seamless and cashless. In 2023, the number of micro markets
grew to around 660, marking a 37% increase compared to 2022—a significant acceleration in growth. This upward trend reflects the market’s growing appeal as businesses look for flexible, low-labour retail options. Micro markets typically feature a variety of beverages and snacks, often including at least one hot beverage machine, and can include additional amenities such as microwaves for heating food and seating areas to enhance the consumer experience. The popularity of micro markets is largely driven by shifts in consumer behaviour, particularly in sectors where hybrid working patterns have reduced traditional office- based consumption. With fewer workers in-office daily, businesses are looking for alternative ways to cater to their workforce
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as traditional canteens become uneconomic to run and micro markets offer an attractive solution. They provide the convenience of a store without the need for staffing, allowing operators to manage rising costs while offering a range of products to customers. In addition, “smart” fridges and nano-
markets, which allow for even more compact, technology-driven retail options, are beginning to make inroads, indicating that the future of micromarkets will continue to evolve. This ongoing innovation positions micromarkets as a key component of the growing automated retail landscape.
Software & telemetry Innovations in vending software and telemetry are proving essential in helping operators navigate the current challenges of rising costs, supply chain disruptions, and shifting consumption patterns. As the industry faces inflation, labour shortages, and the effects of hybrid working, the adoption of more connected, cashless, and data-driven systems is becoming a key differentiator for operators looking to adapt and thrive. One of the major advancements is the
increased use of vending management systems (VMS), which allow operators to streamline operations by managing stock control, route planning, and inventory management more efficiently. These systems provide real-time data on machine performance, stock levels, and sales, enabling operators to reduce waste, optimise product offerings and lower operational costs. With more connected equipment, operators can monitor machines remotely, identify issues before they become problems and respond proactively, ensuring less downtime and better service for customers. Over 75% of
vending equipment is now ‘connected’ – a nearly 20% increase in 12 months (Source: AVA 2023 Census & Market Report) Cashless payments are also becoming the norm in vending operations, catering to consumer preferences for quick, contactless transactions (another stat for inclusion: 85% of pay-vend equipment is now fitted with cashless payment systems). The integration of mobile payment options further enhances the convenience for users, reducing the need for physical interaction with machines while speeding up transaction times. This is especially critical in high-traffic locations such as leisure centres, universities, and workplaces, where consumers expect fast and seamless purchasing experiences. Telemetry, which enables machines to communicate real-time data to operators, is another crucial tool. By providing insights into purchasing patterns and machine performance, telemetry allows for more informed decision-making. Operators can adjust pricing dynamically, tailor product selections based on location- specific data, and improve the efficiency of delivery routes, all of which are vital in an environment where rising fuel and labour costs continue to squeeze margins. Ultimately, these innovations in vending
software and telemetry offer operators the tools they need to not only survive but also thrive by improving efficiency, reducing costs, and enhancing the customer experience.
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