Vending in the Netherlands

2020 IMPACT

A decline in footfall during 2020 impacts vending sales

Although vending saw a decline in current value terms over the latter half of the review period, this category was impacted further by the COVID-19 pandemic as consumers spent less time in public places where these sales normally take place. In general, Dutch consumers are not particularly interested in vending, which has historically been focused on soft drinks and snacks, products that are being consumed less often in the country.

Public health concerns dent prospects for packaged food and hot drinks vending

Akin to tobacco vending, packaged foods and hot drinks vending in the Netherlands continued to struggle in 2020 as a result of health concerns and demand for increased quality. During the pandemic, consumers became more conscious of what they ate and drank, so were less likely to buy snacks and hot drinks from vending machines.

Lekkerland continues to lead vending but other players gain ground

Lekkerland remained the leading player in vending in value terms in 2020, although its share remained stagnant while its rivals Pelican Rouge Group and Maas International Europe gained share. Lekkerland focuses largely on tobacco vending, and given the increasingly restrictive regulatory environment for tobacco vending, the company’s strategy to counter the downwards pressure on sales is to extend its contracts with consumer foodservice outlets, such as cafeterias.

RECOVERY AND OPPORTUNITIES

Challenges ahead for vending with no innovation likely over the forecast period

Vending expected to decline further over the forecast period as other on-the-go and convenience concepts become more popular, for example, limited-services restaurants on high streets, public transport hubs and convenience stores, which increasingly often also have a foodservice component. In addition, public transport uptake will likely take several years to recover after a significant decline in passengers during the COVID-19 pandemic.

Tobacco vending ban in 2022 will further impact growth in vending

Following national implementation of the EU Tobacco Products Directive (TPD2) in 2016, successive Dutch governments took an increasingly stringent approach to enforcing a so-called “dissuasion policy” (ontmoedigingsbeleid) concerning tobacco consumption. As part of this policy, tobacco vending will become illegal in the Netherlands from 1 January 2022.

Health and wellness trend will impact sales in vending over the forecast period

As a result of growing health and wellness concerns in the wake of the COVID-19 pandemic, consumers will become even more disinclined to purchase confectionery, and packaged foods vending is expected to decline further in current value terms over the forecast period. This decline will be accelerated by increasing demand for higher-quality coffee, especially coffee prepared by a barista.