Vending in Malaysia

2021 DEVELOPMENTS

Healthy growth continues as diversification of vending machines widens demand

Vending continued to register positive sales growth in 2021, although the increases seen in sales during the year were more modest than the particularly robust growth registered in the category during 2019 and 2020. The main reason for such sustained robust growth is the diversification of vending machines that has been happening in the country for some time.

Coffeebot Vending continues to expand or rapidly

Coffeebot Vending remained one of the most dynamic players in vending in Malaysia in 2021 as it added 15 new vending machines to its fleet. The company is establishing a strong reputation for hot drink spending with a range of innovative and technologically advanced than the machines that prepare a wide range of speciality coffees and similar types of hot drinks espresso ranging from to matcha latte.

The development of vending is set to see the category expand beyond soft drinks

Traditionally, soft drinks has been very dominant as a product category for vending in Malaysia and with many players in the retailing category having such a strong focus on such a narrow range of products, many local consumers have generally considered vending in general to be synonymous with soft drinks vending. However, as mentioned above, recent years have seen a major diversification of products on offer in vending machines in Malaysia and while soft drinks remain very popular items in vending, consumers are increasingly interested in buying various products from vending machines.

PROSPECTS AND OPPORTUNITIES

Vending to benefit from the wider range of products on offer

The forecast period is expected to see a continuation of the most important trend seen in vending towards the end of the review period: the widening of the range of products that vending machines offer. This widening of the vending product range can be seen as the response of the category’s leading players to heightened consumer demand for convenience and increasingly diverse tastes of the Malaysian general public.

Rising number of vending machines to be seen in public locations

The forecast period is expected to see a proliferation of vending machines in Malaysia. Crucially, it is likely that significant increases will be seen in the numbers of vending machines located in public areas, which fall within the purview of Euromonitor International research.

Offering contactless payment options set to become crucial to success in vending

While vending machines have traditionally accepted payment only in cash via the deposit of coins into a slot, cashless payment methods have emerged as the most important area of innovation in vending worldwide in recent years. This can be seen as a reflection of the increasing interest in non-cash payment methods, especially among younger consumers, as well as the fact that people are generally becoming more digital-savvy and more willing to place their trust in digital transactions.