The vending machine industry is booming with a market value expected to reach $25.25 billion by 2027. Spurred on by the decline in high street retail and the growth of contactless payments, this is a lucrative market for aspiring business people. Yet if you don't have the time to stock and manage a fleet of machines, do you know how you can benefit?
The next best thing is to invest in companies that manufacture these machines. Read on as we discuss why you need to invest in a vending machine company.
Best Investments in 2022
It is predicted that the vending machine industry will have an annual compound growth rate of 6.7% between now and 2027. This growth can be attributed to a number of factors. All of them combine to make vending machines an attractive investment for the future.
The first is that due to the global pandemic the demand for touchless purchases has increased. Vending machines are now available with contactless payment, meaning there are very few points of contact when buying from machines. This increases sanitation and hygiene.
Another factor is that vending machines have grown and can now provide more than just snacks and soda. Entertainment, electronics, and personal hygiene items can all be housed in them. All you need is the right machines and the correct location.
Finally, the decline of brick-and-mortar stores had led to increased revenue. People still need items on the go and are willing to pay extra for the convenience. Without rents to pay, overheads are extremely low for those who would have usually had a physical store or stand.
What Stocks to Buy In 2022
There are a number of stocks for traders that deal in vending machines. Each will have its own level of risk so do your research before investing. Some of the bigger companies are listed below.
Crane Company
One of the US's largest manufacturers of industrial products. Originally creating bathroom fittings, they now have vending machines as one of their many products.
Coca Cola Bottling Co Consolidated
The Coca-Cola Bottling Co Consolidated is the largest bottler of Coca-Cola products in the US. As well as being an independent bottler they produce other Coca-Cola products for sale including vending machines.
Tootsie Roll Industries
Tootsie Roll Industries are more well known as a confectionery manufacturer. They market their brands and products in over 75 countries and also produce vending machines.
The Eastern Company
The Eastern Company is divided into three divisions. These are metal products, security products, and industrial hardware. Vending machines are one of many products they manufacture.
Types of Vending Machines
Part of the growth in vending machine profits is down to the customization potential machines. It is no longer the domain of snacks and drinks, though this area is still massively profitable. Many other items can fit into vending machines.
Bulk Machines
At the bottom end are bulk vending machines. These are the type you see at fairgrounds and candy stores. Low tech and low cost, they usually dispense disposable entertainment products like toys and candy.
Part of their appeal lies in the current desire for retro goods and experiences. These machines hark back to childhood, and something is fun about putting a coin in a slot and not knowing what you will get.
Food and Beverage
These are the standard vending machines you are used to seeing at airports, train stations, and public spaces. They commonly serve snacks and drinks. Machines such as this benefit from footfall and are a quick way for people to pick up items on the go.
People are starting to realize the mark-up that can be gained from selling in a vending machine. You can purchase items such as snacks wholesale and give them a markup of more than triple their original cost depending on your location.
However, many people have realized that these machines can be filled up with many different products. Around the world, vending machines are being adapted for innovative purchases. Everything from books to umbrellas can now be purchased in them.
Finally, these machines come in a range of prices and options for consumers. If people want to add debit and credit card functionality, these can be added as well.
Ice Vending Machines
Ice vending machines can be found at garages and supermarkets. They are extremely profitable, as the costs to produce ice are very small. All you need is the water supply, electricity and the cost of the machine.
It is also something many people want. From the hospitality industry to the average consumer holding a party they will always have demand.
Specialty Machines
Specialty machines are cabinets that house larger goods. Everything from clothing to electronics can be sold in them. Profits in this sector have been increasing rapidly over the last few years.
Growth here has been spurred by the fact that consumers are demanding a wider range of products while they are on the move. As physical shops continue to close due to online retail, there will always be something people have forgotten to pack when traveling or commuting. These vending machines fill that role.
Investing in a Vending Machine Company
Now you know the benefits of a vending machine company, check the stocks available. There are also a number of ETFs that deal in vending machines which you may wish to look into. Remember that all investments have some degree of risk.
If you are looking for a dynamic, forward-thinking vending machine opportunity then Baby Vend should be your first stop. As well as providing machines, we can guide you on your business journey. Contact us here to discuss your future.