Vending in the United Kingdom

2020 IMPACT

Lack of footfall results in declining sales for channel, despite demand for PPE vending

In previous years, coffee-on-the go was a key driver of vending sales in the UK. Many coffee vending machines are located in crowded transportation hubs or workplace sites, which experienced an extreme drop in footfall during the months of lockdown, when consumers were required to stay at home.

Pandemic accelerates the need for contactless payment at vending machines

As witnessed with many elements of consumers’ changing shopping habits, payment trends and methods have been significantly impacted by the pandemic. Consumers were encouraged to avoid the use of cash due to health concerns in 2020, which accelerated the already existing shift towards a cashless society in the UK.

Convenience locations contribute to success of Costa Express

Costa Express (Coffee Nation Ltd) retained its overall leadership of vending in 2020, gaining further value share despite declining sales value due to reduced footfall during the pandemic. The brand’s success relies on its hot drinks offer through its vending machines, where consumers can enjoy the same blends that they would find in its specialist coffee shops.

RECOVERY AND OPPORTUNITIES

Convenience factor will drive sales recovery

The recovery of vending sales for many product categories is likely to take place over the early part of the forecast period, with sales through this channel heavily reliant on footfall, national and regional mobility movement restrictions. While lockdown restrictions remained in place heading into 2021, the likelihood of these easing over the year are likely to result in a greater upturn in demand through vending, with the channel set to recover to pre-COVID-19 levels by the end of the year.

Personalisation is key to vending’s future success

Enhancing the consumer experience has been gaining in importance in many aspects of retailing. Personalising offers and communication to attract consumers is also becoming increasingly important in vending.

Healthier offers and sustainable packaging likely over the forecast period

Being more conscious about purchasing and consuming healthier products was an ongoing trend in the UK prior to the pandemic. However, the resulting health crisis has enhanced the importance of physical and mental wellbeing.