Vending is a small channel in terms of value sales in Argentina. In 2020, during the lockdowns, it lost value sales, as a lot of vending machines are located in city centres where there very little footfall during the lockdowns.
Technology advances have now penetrated vending machines and for example offer the possibility of making payments through QR codes, which does away with the need to have cash or even the exact amount of money to make a purchase. For instance, in 2021, the ice cream chain Grido invested in smart vending developed by the start-up Intuitivo, which enables consumers to purchase with MercadoPago, a virtual wallet developed by Mercado Libre.
Hot drinks continue to being the most popular product type sold to consumers via vending in Argentina. This is because there are hot drink vending machines located at most forecourt retailers and this supports volume sales, as drivers often purchase hot drinks during car journeys.
Vending will register very healthy constant value growth over the forecast period, with technology continuing to improve the convenience and experience for the consumer. However, not only is vending a convenient option for the consumer, but it is also much cheaper for a retailer to have a vending machine where people can buy a beverage or a snack instead of a physical store with employees serving people.
Vending in Argentina will continue to be concentrated in areas with high levels of controlled footfall, such as kiosks, shopping centres, service stations and airport. This is not only in order to attract more consumers, but also to less the risk of vandalism.
A developing trend in the vending channel is a rise in the number of machines offering healthy products such as fruits and cereal bars. Also, a growing number of companies have started renting vending machines that offer fresh foods such as salads and sandwiches.
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Vending
Vending means automatic retailing. It covers the sale of products and services 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, ie food, drink and other consumable goods such as vended tobacco, sanitary products and condoms. Services such as the public telephone, laundrette 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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