ince the industry started
recovering from the Great
Recession, there has been a
new business model emerging. Dur-
ing the hard years, it became appar-
ent to many operators it was time to
gain operating effciencies and better
control costs. This has led to a steady
increase in the investment in vending
management systems (VMS) as a way
for operators to manage their busi-
nesses more effectively. In 2015, oper-
ators using VMS report it has helped
increase same store sales, cut unprof-
itable accounts, cut labor and vehi-
cles costs, increase product variety,
all while maintaining or increasing
sales and profts. Cashless payment
acceptance is also being adopted at a
faster rate. It has increased sales in
many locations, according to opera-
tor comments. In part due to this
strengthening of business practices,
the aggregate revenue for the industry
has grown nearly 4 percent in the past
year to reach $20.9 billion, the high-
est it has been in 6 years.
In addition to vending technology,
micro markets have been invigorating
revenues. Thanks to the open shop-
ping experience with new products
and broader appeal, micro markets
are driving interest by workplaces
and consumers. Both are requesting
this type of solution from operators
at an increasing pace. Micro markets
have also brought new equipment
providers, new smaller location solu-
tions, and additional product sup-
pliers to the industry. In 2015, the
percentage of revenue associated with
micro markets rose to a record-break-
ing 10.2 percent of the total, making it
S
CHART 2: OPERATOR SALES
SIZE
REVENUE
RANGE
% OF 2015
OPERATORS
PROJECTED
2015 SALES
% OF 2015
SALES
Small under $1M 50.5% $1.77B 8%
Medium $1M - $4.9M 26.6% 5.81B 28%
Large $5M - $9.9M 9.1% 5.27B 25%
Extra large $10M + 13.8% 8.06B 39%
B
I
L
L
I
O
N
S
O
F
D
O
L
L
A
R
S
23.21
19.31
19.69
20.17
20.90
22.54
22.05
19.85
19.25
18.96
0
5
10
15
20
25
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
CHART 1: INDUSTRY REVENUE IN BILLIONS, 10-YEAR REVIEW
ANNUAL REPORT S T A T E O F T H E I N D U S T R Y
INDUSTRY
REVENUE TO
$20.9 BILLION
MICRO MARKETS
LIFT VENDING
Vending machines still remain a core business asset,
but revenues are growing from more effective business
management tools and expanding service opportunities.
By Emily Refermat, Editor
22 Automatic Merchandiser VendingMarketWatch.com June/July 2016