Vending in France

2021 DEVELOPMENTS

Reduced footfall around towns and cities due to COVID-19 continues to dampen demand somewhat for vending

Thanks to more limited restrictions than in 2020 (ie “only” four months of quarantine in 2021 compared to seven months in the previous year), as well as the impressive progression of the country’s vaccination programme and an opening of the country’s borders, sales in vending machines began to recover in 2021. However, the rebound was not strong enough to offset the huge losses incurred during 2020 when sales dropped by over one-third on 2019 with this proportion much higher in vending in captive locations.

Selecta and the ongoing collapse of the vending coffee machine

The situation experienced by Selecta France, the leading player in vending, exemplifies the turmoil of the category in which almost half of its local sales were lost in 2020 with 2021 only experiencing weak recovery. The acquisition of rival player Pelican Rouge in 2016 and the very important contract that the company has had in place with the French national railway operator SNCF until at least 2025 as well as various new technologies in an effort to consolidate its leading position were promising, until the pandemic struck.

Red Bull and pizzas remain the only success stories in 2021 in vending

Products or formats with potential in vending remained rare in 2021. Regarding the products on offer, Red Bull did not despair of the opportunity of challenging the near total domination of Coca-Cola in proximity outlets for sales of soft drinks, including convenience stores, forecourt retailers and vending machines.

PROSPECTS AND OPPORTUNITIES

Uncertain recovery with a return to normal although the persistence of working from home continues to pose problems

Until the end of 2020, vending was expected to recover from the devastating impact of the COVID-19 pandemic during 2021-2022 as the positive impact of the French government’s vaccination programme began to take hold. The far higher numbers of people congregating in public and semi-public spaces was set to result in a dramatic increase being seen in demand for vending as was the return of international air travel and long-distance train travel that was predicted to lead to a significant increase in demand for vending machines located in transport interchanges, railway stations, motorway service areas and airport terminals.

Vending also faces major issues around packaging and associated higher costs, which deals a fatal blow to some small- and medium-sized companies

In addition to all the changes and challenges around the unprecedented circumstances created by the global pandemic, vending players have had to deal with the recent Government’s legislation of ecological transition. This started from mid-2021 with the withdrawal of all plastic cups theoretically.

The choice of automated shops pays off while foodservice poses indirect competition by increasingly embracing vending as such sales are counted under foodservice

While the hybrid category of pizza vending machines is expected to further spread in France, other new types of automated stores and foodservice outlets are likely to indirectly compete with vending food and drinks. The new generation of automated/self-service grocery retailer outlets has the potential to undermine the ability of vending to capture the imagination of the French population.