Vending returned to growth in 2021, due to the removal of COVID-19 social distancing guidelines and the resumption of hybrid working. Furthermore, the hosting of Expo 2020, which was delayed to October 2021 to April 2022, helped spur the return of tourists, also fuelling the growth prospects for vending.
In 2021, Magnati, a subsidiary of First Abu Dhabi Bank (FAB), offered the region’s first integrated payment solution for vending machines by partnering with Dubai Refreshment Company, a leading F&B manufacturing and distribution company in the Gulf region. The system features an in-built card reader, and will be the first secure integrated cashless payment solution.
With hygiene concerns top-of-mind, residents of the United Arab Emirates are hesitant to use cash, and are especially reluctant to dole out small change for purchases at vending machines that they would otherwise prefer to buy at a grocery store. New vending machines took this into account in 2021, and many were increasingly exclusively operated with cards.
Vending machines that sold hygiene products related to the pandemic increased in popularity in 2021, and growth is set to continue in the forecast period due to the convenience of this channel. For example, products such as disposable face masks, hand sanitisers and disinfectant wipes are being sought by consumers in the country.
In 2021, ENOC Group from the United Arab Emirates opened 14 compact petrol stations across Dubai, with the first one opening in Dragon Mart 2. These compact service stations offer customers convenient refuelling services, and in lieu of a traditional forecourt retailer, there are various vending machines available offering food and beverages, as well as personal hygiene products.
Noon.com partnered with the Chinese technology company Neolix to test driverless automatic vending machines in the United Arab Emirates, which can be found at tourist attractions.
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Vending
Vending means automatic retailing. It covers the sale of products and services at an unattended point of sale through a machine operated by introducing coins, bank notes, payment cards, tokens or other means of cashless payment. Sales figures cover vended products only, ie food, drink and other consumable goods such as vended tobacco, sanitary products and condoms. Services such as the public telephone, laundrette facilities, travel tickets, stamps, passport photographs, domestic energy supplies and business card creation are excluded. Coverage includes vending systems installed in public and semi-captive environments only. Hotels, transport networks, recreational centres, shopping centres/malls are included. Factories, offices, hospitals, prisons, schools and other captive environments are excluded.
See All of Our DefinitionsThis report originates from Passport, our Vending research and analysis database.
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