Food and Beverage Vending Trends in the U.S.

Published Jan 1, 2013 |
160 Pages |
Pub ID: LA6488959
While food and beverage vending has suffered from years of significant sales declines, Packaged Packs believes the industry is turning the corner. We forecast 1.5% market growth in 2015, on the heels of vending machine innovation that promises higher food and beverage quality, increased consumer interaction, increased cashless payment acceptance, and more aggressive competition with foodservice.
Technological innovation holds the keys to future growth. Social and interactive vending, touchscreens, and wireless supply-side networking are a big part of the equation, offering tremendous upside for consumer engagement. But virtually every vending macro driver is heavily influenced by technological change, from cashless payments to health and quality vending enhancements. And while the strength of vending lies in snacking convenience, growth will come from delivering health, freshness and quality. Sales of fresh food are growing, and natural vending solutions bring the promise of higher-quality, higher-status food and drink to the market.
Food and Beverage Vending Trends in the U.S provides industry participants with the wealth of analysis and guidance they need to stay abreast of trends shaping this evolving market. Report coverage includes market sizing and forecast for U.S. food and beverage vending as well as analysis of the following market drivers:
- Consumer vending expenditure trending analysis; snack-driven consumer spend share analysis; vending product segment sales trending; snack/confectionary product sales leadership trends; and vending location trends.
- Macro trends shaping food and beverage vending, including converging technological applications; health, freshness and quality; cashless payments, and snacking.
- Food and beverage vending competition: office coffee service; coffee pods/k-cups; micromarkets; restaurants; and convenience stores.
- Food and beverage machine vending usage and selected purchases: comparing usage of vending machines for food/drink with usage of fast food restaurants, family restaurants, casual restaurants, coffeehouse/donut shop/yogurt place/smoothie places, and convenience stores; and assessing purchases of chocolate candy, cereal bars, nutrition bars and ice cream by channel and demographic assessment of vending machine users.
- Vending usage motivators: assessing whether consumers would use vending machines more often if offered additional products and/or services. Variables discussed include healthy food options; convenient location; credit/debit card acceptance; coffee and coffee drink quality; and tea drink variety and quality. Demographic analysis and filtering is conducted according to vending users and non-users, convenience store prepared food users, and snack/beverage store users.
- Vending and refreshment programs and strategies at ARAMARK Corp and Canteen Vending Services Inc.
- Chapter 1: Executive Summary
- Report Scope
- Market Size and Forecast
- Macro Trends Shaping Food and Beverage Vending
- Competitive Context
- Vending Machine Food Usage
- Consumer Vending Usage Motivators
- Food and Beverage Vending Contractors
- Chapter 2: Market Size and Forecast
- Summary analysis
- Market size and forecast
- Graph 2-1: Food and Beverage Vending Revenue, 2006-2015
- Trailing foodservice sales
- Restaurant and foodservice sales to grow by 4%
- Household food & beverage vending spend lags household foodservice spend
- Table 2-1: Household Spending at Vending Machine/Mobile Vending & Foodservice Facilities, 2006-2011
- Bright demographic spots
- Lower- and middle-income consumers and Hispanics drive vending sales
- Table 2-2: Consumer Share Analysis: Number of Households, Total Household Income, Foodservice Facilities
- Spending & Vending Machine/Mobile Vending Spending: By Demographic, 2011
- Importance growing
- Table 2-3: Vending Machine and Mobile Vending: Consumer Spending Share:By Demographic, 2007 vs. 2011
- Vending spend by daypart: historical snacking strength in decline
- Table 2-4: Consumer Spending on Vending Machine and Mobile Vending: By Day Part, 2006-2011
- Market composition by product segment
- Graph 2-2: Food and Beverage Vending Revenue: Sales by Product Segment, 2006-2011
- Table 2-5: Food and Beverage Vending Revenue: Percent Growth by Product Segment, 2007-2011
- Beverages
- Table 2-6: Cold Beverage Vending Sales, 2006-2011
- Hot drink vending struggles; opportunity calls
- Table 2-7: Hot Beverage Vending Sales, 2006-2011
- Milk sales fall again
- Candy, snacks and confections
- Table 2-8: Candy/Snack/Confection Vending Sales, 2006-2011
- Small for large
- Top snack/confectionary brand trending
- Table 2-9: Top 20 Snack/Confectionary Vending Products, 2007 vs. 2011
- Price increases differ by product
- Table 2-10: Top 20 Snack/Confectionary Vending Products in 2011:
- Price per Ounce & 2007-2011 Price-per-Ounce Trends
- Vended food
- Table 2-11: Vended Food Sales, 2006-2011
- Fresh food a bright spot
- Ice cream
- Location/site analysis
- Table 2-12: Vending Machine Locations, 2007-2011
- Chapter 3: Macro Trends Shaping Food and Beverage Vending
- Summary analysis
- Technology
- Reinventing the vending machine
- But the presence of technology does not equate to quick uptake
- Pepsi interactive vending machine off the ground
- Gifting option
- Random Acts of Refreshment?
- Pilot program off the ground
- Coca-Cola Interactive Vender in testing stage
- Coca-Cola Freestyle
- BevMax
- EatWave Vending goes hot and cold
- Health & Quality
- Graph 3-1: Consumer Food Health Attitudes & Behaviors, 2007 vs. 2012
- Healthy corporate food promotion policies nearing majority status
- It’s in the employer’s interest
- And consumers say they want healthier vending
- Table 3-1: Consumer Food/Drink Vending Usage Motivators: All Adults,
- Food/Drink Vending Machine Users & Nonusers, 2012
- Vending is finding its healthful role
- Healthy vending at Stage 2 of 5-stage trend cycle
- H.U.M.A.N. Healthy Vending
- Vend Natural
- Fresh Healthy
- Healthy products
- Quality products
- Upscale Sprinkles Cupcakes burnishes vending quality halo
- Let’s Pizza: Green Shoots for Food Vending?
- The Smart Butcher
- Frozen steps up its game
- Schwan’s-branded frozen food vending
- Cashless payments
- Less than 4% of vending machines are cashless
- We would use them more if they took payment cards
- Table 3-2: Consumer Food/Drink Vending Usage Motivators: All Adults, Food/Drink Vending Machine Users & Nonusers, 2012
- Cash wariness fuels debit card use
- Table 3-3: Use of Debit Cards to Avoid Carrying/Paying with Cash & Because It Is More Convenient Than Using Cash, 2012
- Credit, debit, prepaid & gift card usage trends
- Table 3-4: Consumer Debit, Credit and Prepaid Card Usage Trending, 2008-2012
- Cost barrier to cashless acceptance
- Generational issues
- Table 3-5: Consumer Debit, Credit and Prepaid Card Usage: By Age, 2012
- Two vendors; two cashless successes
- Coca-Cola expands traditional card/Google Wallet acceptance
- In a post-regulatory world, do vending and debit make the match?
- Regulations clamp down on debit interchange fees
- Mobile cashless vending
- Smartphone share of mobile phones passes 50%
- Table 3-6: Consumer Mobile Phone Ownership, Smartphone Ownership & Ownership Share, 2012
- Mobile payments catching on
- ISIS paving the way
- A challenge to the payment networks
- The tip of the mobile payments iceberg
- Open wallet approach
- Table 3-7: Isis: What’s in the Wallet & How It Works
- Off the ground after delays . . .
- . . . And to a vending machine near you
- Health regulation and labeling
- Regulation
- Calories Count health labeling initiative
- Chicago vending gets a makeover
- Call for vending snack regulation
- Snacking
- Healthy choices in the minority
- Part of the routine
- Portability, please
- Graph 3-2: Restaurant Snacking Influencers, 2010
- Demographic context
- The more things change, the more they stay the same
- Graph 3-3: Consumer Snacking Attitudes & Behaviors, 2007 vs. 2012
- Snacking at restaurants
- Table 3-8: Family/Steakhouse & Fast food/Drive-in Usage for Breakfast, Lunch, Dinner & Snack: 2004-2012 .
- Limited-service players offering fresh snacks right around the corner
- Starbucks rolls out more than 15 indulgent snack-centric menu items
- Table 3-9: Starbuck's Snack-Centric New and Returning Menu Items, 2012
- McDonald’s continues to downsize sandwiches into wraps
- Table 3-10: McDonald's Snack-Centric New and Returning Menu Items, 2012
- Dunkin Donuts developing snackable breakfast items
- Table 3-11: Dunkin Donut’s Snack-Centric New and Returning Menu Items, 2012
- College snacking
- Chapter 4: Competitive Context
- Summary analysis
- Office coffee service
- Where coffee is king
- Graph 4-1: Office Coffee Service Revenue, Dollar Share by Product Category, 2007-2012
- Branded coffee solidifies comeback
- Table 4-1: Office Coffee Service Revenue, Percent Share by Product Category, 2007-2012
- Industry segment analysis
- Table 4-2: Office Coffee Service Accounts, by Industry Served, 2007-2012
- Single cup brewers
- Coffee opportunity: morale, retention and productivity
- Coffee does helps employees through the workday—at least employees think so
- Coffee helps them through the workday
- Table 4-3: Coffee Helps Keep Me Productive Through The Workday, Selected Demographics, 2011
- For many, high-quality coffee is an important workplace perk
- Table 4-4: Coffee Helps Keep Me Productive Through The Workday, Selected Demographics, 2011
- Rise of the K-Cup
- The office coffee pot is still king—but for how long?
- Pods/K-cups closing gap; office usage significantly influenced by personal purchases
- Table 4-5: Coffee Types/Methods Used by Consumers Drinking Coffee at Work, 2011
- Matching upward trend in single-cup brewer placements
- Table 4-6: Office Coffee Service Single Cup Brewer Placements, 2007-2012
- Coffee usage frequency influences office coffee procurement choice
- Pods/k-cups may pose price barrier for frequent coffee drinkers
- Gap between vended coffee and pods/k-cups closes among high-frequency coffee drinkers
- Table 4-7: Coffee Types/Methods Used by Consumers Drinking Coffee at Work,
- by Coffee Usage Frequency, 2011
- Generational differences
- Table 4-8: Coffee Types/Methods Used by Consumers Drinking Coffee at Work, by Generation, 2011
- Satisfaction with office coffee procurement methods
- Free vending on top?
- Table 4-9: Satisfaction with Coffee Types/Methods Provided by Employer, 2011
- The morning dilemma
- 142 million opportunities to sell coffee every morning: but office locations lose out
- Pre-work coffee drinking siphons away workplace drinking
- Micromarkets on the rise
- How it works
- 365 Retail Markets
- More than 1,000 in operation
- Replacing vending
- Growth factors
- Easy payment
- Greater variety
- More food vending items
- More reasons for employees to stay onsite
- Customer handling and review
- Self-checkout nothing new
- Challenges
- Minimum patronage threshold
- Theft concerns
- Sales and profitability
- Restaurants, convenience stores and other food retail
- Familiarity and ease of use drive restaurant decision
- Convenience is King
- Among restaurants, convenience comes in many forms
- For employees, what does it mean?
- Restaurant food retail density analysis provides insight
- Why it matters
- As urban as it gets: Aon Corporation
- 400 restaurant choices!
- A giant in Rural America: Tyson Foods
- Setting up shop on the suburban fringe: General Motors
- Suburban sprawls: Baxter International and Allstate
- Table 4-10: Restaurant Selection Density, Selected Fortune 500 Locations
- Not just companies, but schools, too
- Convenience stores
- Category summary
- Foodservice getting lots of attention
- Graph 4-2: Convenience Store Prepared Foods Market Size & Forecast, 2007-2014
- Prepared foods foodservice share
- Graph 4-3: Convenience Store Foodservice Sales: By Category, 2011
- Food item sales analysis
- Graph 4-4: Convenience Store Prepared Foods Sales, Sales Share & Annual Change: by Food Type, 2011
- Prepared foods & dispensed beverage purchases
- Snack and beverage restaurant concept encroachment
- JambaGo
- Seattle’s Best vending machines to alter consumer expectations
- VIA raises instant coffee quality bar
- Seattle’s Best to transform coffee vending
- Chapter 5: Vending Machine Food Usage
- Summary analysis
- Vending usage in context
- Vending food and beverage choices
- Vending machine usage in context: a competitive foodservice field
- But vending machines hold their own against convenience stores
- Women provide health and wellness opportunity
- Table 5-1: Foodservice Channel Usage: By Gender, 2012
- Youth more important to vending than to other foodservice channels?
- Table 5-2: Foodservice Channel Usage: By Age, 2012
- Equal income opportunity
- Table 5-3: Foodservice Channel Usage: By HH Income, 2012
- Racial/ethnic appeal
- Table 5-4: Foodservice Channel Usage: By Race/Ethnicity, 2012
- Work and school status weighs heavily on vending machine use
- Table 5-5: Foodservice Channel Usage: By Work Status, 2012
- Regional differences
- Table 5-6: Foodservice Channel Usage: By Region, 2012
- Vending food and beverage choices
- Chocolate makes waves; cereal bars and nutrition bars can play a larger role
- Cereal/granola bar purchase 28 times more likely from supermarket than vending machine
- Table 5-7: Personal Purchase of Cereal/Granola Bars, Energy/Nutrition/Meal Bars
- & Chocolate Candy: By Retail Channel, 2012
- Key chocolate candy vending consumers
- Table 5-8: Vending Machine Chocolate Candy Purchasers: By Demographic, 2012
- Key cereal/granola bar vending consumers
- Table 5-9: Vending Machine Cereal/Granola Bar Purchasers: By Demographic, 2012
- Packaged and RTD tea purchasing by retail channel
- Table 5-10: Personal Purchase of Packaged Tea & Canned/Bottled
- RTD Tea: By Retail Channel, 2012
- Tea’s healthful properties a hit with consumers
- Table 5-11: Tea Types Purchased in Last 12 months: Health Significance, 2011
- Foodservice upside
- Specialty tea—or specialty tea mainstreaming?
- Target young and old
- The ethnic tea connection
- Key bottled/canned RTD tea vending consumers
- Table 5-12: Vending Machine Bottled/Canned RTD Tea Purchasers: By Demographic, 2012
- Ice cream purchasing by retail channel
- Table 5-13: Personal Purchase of Ice Cream: By Retail Channel, 2012
- Key ice cream vending consumers
- Table 5-14: Vending Machine Ice Cream Purchasers: By Demographic, 2012
- Chapter 6: Consumer Vending Usage Motivators
- Summary analysis
- Incent with health
- Convenience
- Debit and credit
- Coffee and tea
- Convenience store/gas station prepared foods users & snack/beverage store users
- Introduction
- Yes, more healthy options
- Give me convenience
- Ditch cash and coin
- Coffee and tea
- Table 6-1: Consumer Food/Drink Vending Usage Motivators: All Adults,
- Food/Drink Vending Machine Users & Nonusers, 2012
- Table 6-2: Percentage of Consumers Who Would Use Food/Drink Vending Machines More Often If they Sold
- More Healthy Options: Selected Demographics, 2012
- Table 6-3: Percentage of Consumers Who Would Use Food/Drink Vending Machines More Often If they Sold
- More Higher-Quality Coffee & Higher-Quality Coffee Drinks: Selected Demographics, 2012
- Vending machine use incentive: tea variety and quality
- Table 6-4: Percentage of Consumers Who Would Use Food/Drink Vending Machines More Often If they Sold
- Wider Variety of Tea Drinks & More Higher-Quality Tea Drinks: Selected Demographics, 2012
- Vending machine use incentive: Payment convenience & location convenience
- Table 6-5: Percentage of Consumers Who Would Use Food/Drink Vending Machines More Often If They Were
- More Conveniently Located & Took Credit/Debit Cards: Selected Demographics, 2012
- Incenting c-store & snack/beverage store users to use vending machines more
- Table 6-6: Consumer Food/Drink Vending Usage Motivators: Food/Drink Vending Users
- & Food/Drink Vending Users Age 18-29 Who Use Convenience Stores & Snack/Beverage Stores, 2012
- Table 6-7: Consumer Food/Drink Vending Usage Motivators: Food/Drink Vending Users
- & Food/Drink Vending Users Age 18-29 Who Agree/Strongly Agree They Eat Very Healthy, 2012
- Table 6-8: Consumer Food/Drink Vending Usage Motivators: Food/Drink Vending Users
- & Food/Drink Vending Users Age 18-29 Who Agree/Strongly Agree They Eat Several Small Meals Per Day, 2012
- Chapter 7: Food and Beverage Vending Contractors
- Summary analysis
- ARAMARK Corp
- Canteen Vending Services Inc.
- ARAMARK Corp
- Foodservice operations
- Key North American sectors
- ARAMARK Refreshment Services
- RefreshSTYLES Area Décor
- Breakroom promotional tools
- Customizing health: Just4U for Vending
- Convenience stores & vending
- Filterfresh acquisition
- Waste-to-Energy and Terracycle sustainability initiatives
- Small business service innovation
- Giving clients choices
- Equipment upgrades help drive bottom line
- On-site foodservice
- Event catering
- Strategy: Workplace Productivity, Value-Added Services, Contract Design
- Workplace productivity
- Canteen Vending Services Inc.
- Compass Group PLC
- Compass Group North America (CGNA)
- Foodservice strategy
- Room for growth
- It Takes You – Eat Local
- Leveraging role of single-source provider
- Key North American sectors
- Canteen Vending
- Canteen Office Coffee Service
- Canteen’s aggressive acquisition path
- Coffee Distributing Corp brings strong northeast office presence
- Other acquisitions
- The Starbucks connection
- Market Central
- Health and wellness initiatives
- 2bU
- Choice Plus
- Table 7-1: Canteen Vending: Choice Plus Snack Criteria
- Balance
- Micromarketing: Avenue C Vending
- Fresh foods “Fresh to You”
- Appendix
- Methodology
- Market size and forecast
- Other sales estimates
- Consumer survey methodology
- Menu item trend analysis
- Report table interpretation
- Abbreviations