Vending in Argentina

2020 IMPACT

Vending sees extensive decline in 2020 as footfall in public places plummets

Vending machines saw extensive decline during the COVID-19 pandemic because they are located mainly in bars, kiosks and places with high traffic, such as public offices, and these spaces were either closed during lockdown or saw a sharp drop in circulation. The vending channel also remained very fragmented in 2020, with many companies offering these services scattered throughout Argentina.

Operators leverage the latest technology to improve sales in vending

Technology advances have now penetrated vending machines, offering the possibility of making payments through QR codes and facilitating consumption among customers who do not always have the exact amount of money to make a purchase via these machines. For example, En Punto installs vending machines for companies that wish to provide a choice of lunches and snacks for their employees.

The shift towards healthy food and snacks continues

A developing trend in the vending channel is a rise in the number of machines offering healthy products such as fruits and cereal bars, with a growing number of companies starting to rent machines that offer fresh foods such as salads and sandwiches located mainly in big companies and workplaces. At the same time, many kiosks still use vending machines to offer traditional products such as coffee.

RECOVERY AND OPPORTUNITIES

Demand for contact-free purchasing will drive the development of vending in the future

During the pandemic, consumers became much less willing to risk coming into contact with other people or things, and even when the pandemic is under control, it is likely that there will be a residual reluctance to expose oneself to the threat of contagion unnecessarily. In this respect, vending offers consumers relatively contact-free shopping experiences, especially when the products can be purchased electronically using a QR code.

Vending has a positive future as it continues to develop

Although the pandemic hit vending hard, this channel has a positive outlook, thanks to its convenience, practicality and low overhead costs in sites where there is high consumer traffic. However, as people return to normal life over the next year or two, vending will see strong current retail value growth.

Availability of fresh food will grow in response to rising health awareness

In response to rising health and wellness concerns in Argentina in the wake of the COVID-19 pandemic, vending operators will continue to introduce fresh foods and drinks, including salads, sandwiches and juices over the forecast period. Those vendors who can cater for specific dietary requirements while at the same time offering tasty snack options and meal substitutes are likely to perform well as the health and wellness trend in the country deepens.