Vending in Mexico

2020 IMPACT

Lockdown causes vending sales to plunge in 2020 but vending machines selling health products prove popular

Impulse purchases of non-essential items drive much of the vending industry’s revenue. As Mexico introduced lockdown at the end of March 2020, these purchases declined, leading to losses for the industry.

Government attempts to limit sale of junk food near and in schools

The Mexican federal government has signed off on a statute that gives individual states more power to limit the sale of junk food near and in schools, and to young children in general. They are doing this in an effort to fight childhood obesity.

Grupo Bimbo continues to lead a concentrated channel in 2020

Vending is concentrated, with three players accounting for more than two thirds of value sales in 2020. These three players are also leaders in categories that are traditionally sold through several grocery channels: Grupo Bimbo SAB de CV, which produces packaged cakes, sweet biscuits, salty snacks, seeds, nuts and confectionery; and Pepsi-Cola Mexicana SA de CV and Coca-Cola Mexico, both of which are leaders in packaged beverages, including carbonates, juice, water and RTD tea.

RECOVERY AND OPPORTUNITIES

Vending sales likely to be boosted by consumers returning to regular lives during the forecast period

The vending industry relies on impulse purchases, as consumers pick up snacks while rushing to work or grab an item they forgot to pack in their bag for the day. Many of these purchases occur either while workers are commuting to their jobs or are partaking in other activities that have been limited by the COVID-19 pandemic.

Touchless and self-pay kiosks set to increase over the forecast period

An increase in touchless and self-pay kiosks is expected to continue throughout the forecast period. This is partially as a response to increased awareness of potential virus transmission in the wake of COVID-19.

Vending likely to extend to refilling of products over the forecast period

Dove, a Procter & Gamble brand, has begun offering vending machines to refill bottles for shampoo and other products. Perhaps this idea will catch on and be an important way to decrease plastic waste going forward.