Vending in Malaysia

2020 IMPACT

New pandemic-induced demand and opposing forces act on vending during 2020

During 2019, packaged drinks vending accounted for the highest proportion of the vending channel although packaged food vending machines were also becoming increasingly popular in urban areas as busy lifestyles were driving consumer demand for convenience and on the go eating. Notably, local player Nuvend experienced strong increases in demand for its fresh smoothie vending machines.

Office workers choose vending to minimise social contact with smart vending machines being particularly popular

Office workers who were unable to work from home and who were still required to commute to their offices sought out vending machines in order to provide them with snacks and even lunch. While many foodservice outlets had to close their dine-in facilities, many opted to temporarily move into takeaway in order to cater to the significantly pared down workforce.

Players step up innovation during 2020 to meet consumer demand during unprecedented health crisis

Prior to 2020, vending was seeing strong technological development and innovation as category players were seeking to remain relevant, especially to younger people and busy urban dwellers who comprise the channel’s core consumer base. However, due to the rising demand for some particular forms of vending in 2020, vending machine operators strove harder to introduce more innovative machines.

RECOVERY AND OPPORTUNITIES

Creativity unlocks the mystery of vending for millennials

Once the pandemic recedes and vaccines are rolled out around the world, vending machines are expected to remain popular as they are convenient and easy to use. Local vending players will also continue to breathe new life into the category by being more creative with their product selection.

Creative evolution of product supply in health and beauty

Traditional vending machines typically hold soft drinks, bottled water and Asian drinks. This type of vending is likely to maintain steady growth over the forecast period once government restrictions ease as more companies will house these machines on their premises for their employees.

Digital engagement drives the success of local vending players

Smaller local vending players such as Ventaserv will continue to turn to technology and digital engagement as a core part of their efforts to improve the appeal of their vending machines and remain competitive with the channel’s larger and more established players. Many of these local players have incorporated digital panels into their vending machines, providing consumers with a better and more sophisticated buying experience overall.