Rising health awareness in Israel is likely to continue to discourage consumption of sugary food and beverages. However, while this will mainly drive consumers to attempt to eat healthier meals, they are still likely to occasionally indulge in small snacks that are perceived to be less healthy when they are on the go, which vending machines offer.
As vending machines are located in busy locations, demand is expected to remain stable heading into 2023 in line with the return to on-the-go routines and greater opportunities for impulse purchases. However, the severity of declines at the height of the pandemic, and poor prospects for soft drinks vending and hot drinks vending due to the return to foodservice or healthier lifestyles, and other products vending (which after the surge in demand for hygiene-related items such as face masks and antibacterial hand gel is predicted to return to pre-pandemic levels) will mean that overall vending will struggle to recoup its losses and is predicted to remain below pre-pandemic levels by the end of the forecast period.
The competitive environment in vending is expected to remain mild over the forecast period with little, if any, significant increase in intensity. In large part this is due to high barriers to entry; thus, there are no new players on the horizon preparing to establish themselves in the channel and increase competition.
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Vending (automatic merchandising) is the sale of products at an unattended point of sale through a machine operated by introducing coins, bank notes, payment cards, tokens or other means of cashless payment. Sales figures cover vended products only (i.e. food, drink and other consumable goods such as vended tobacco, sanitary products and condoms). Services such as the public telephone, launderette facilities, travel tickets, stamps, passport photographs, domestic energy supplies and business card creation are excluded. Coverage includes vending systems installed in public and semi-captive environments only. Hotels, transport networks, recreational centres, shopping centres/malls are included. Factories, offices, hospitals, prisons, schools and other captive environments are excluded.
See All of Our DefinitionsThis report originates from Passport, our Vending research and analysis database.
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