Sales of products through vending machines rose by 2.8% in 2006 to £3.52bn. The number of vending machines in operation also increased to 1.3 million, an increase of 3.1% on 2005. Sales growth in the vending market between 2002 and 2006 outperformed the increase in household expenditure on food and non-alcoholic beverages over the same period.

The three main sectors of the vending market are refreshment machines; cigarette and tobacco machines; and other vending machines. The largest sector is refreshment machines, which includes hot and cold drinks, snacks, confectionery, sandwiches and meals. The fastest-growing sector between 2002 and 2006 was other machines, which includes a wide range of non-food and beverage items, such as newspapers and magazines, personal care products and condoms. Sales of cigarettes through vending machines have demonstrated the slowest rate of growth since 2002 and are now accounting for a steadily declining percentage of the market. Health concerns and the removal of cigarette machines from some locations by operators have contributed to the situation.

A number of new legislative measures are expected to have an impact on the UK automatic vending industry. These include: the EU directive on the Waste Electrical and Electronic Equipment (WEEE), which is the main legislation applicable to vending machines at the end of their life; The Restriction of Hazardous Substances Regulations (RoHS) Directive, which restricts the use of certain hazardous substances in electrical and electronic equipment (including vending machines); and the European Food Safety Regulation, which requires all food businesses to base their food safety management on what are called Hazard Critical Control Point Principles (HACCP).

From September 2007, vending machines in schools will only be able to stock products such as edible seeds, unsalted nuts, and fruit and vegetables. No confectionery, chocolate or crisps will be allowed and the only other drinks available will be water, milk, pure fruit juices, yoghurt and milk drinks, low-calorie hot chocolate, tea and coffee. To meet these requirements, many of the leading vending companies have launched new ranges of healthy option snacks, most of which have limited amounts of calories, fat, sodium and added sugar.

Key Note forecasts that the sale of products though vending machines will continue to rise between 2007 and 2011, as the number of machines in use increases further and the range of products that can be purchased continues to widen. The introduction of more healthy options to vending machines should also help to increase their appeal to a wider range of consumers and technological developments such as cashless payment systems should similarly help to boost sales.

Executive Summary
1. Market Definition
REPORT COVERAGE
MARKET SECTORS
Refreshment Machines
Cigarette/Tobacco Machines
Other Machines
MARKET TRENDS
Decline in the Number of Smokers Continues
Trend Towards More Healthy Vended Food and Drinks
Technological Developments
More Legislation for the Automatic Vending Operators
ECONOMIC TRENDS
Gross Domestic Product
Population
Inflation
Unemployment
Household Disposable Income
MARKET POSITION
The UK
Overseas

2. Market Size
THE TOTAL MARKET
Number of Machines in Use
BY MARKET SECTOR
Refreshment Machines
Cigarette/Tobacco Machines
Other Product Machines
OVERSEAS TRADE
General Overview
Imports
Exports

3. Industry Background
RECENT HISTORY
INDUSTRY SYNOPSIS
Number of Companies
Employment
REGIONAL VARIATIONS IN THE MARKETPLACE
DISTRIBUTION
HOW ROBUST IS THE MARKET?
LEGISLATION
Waste of Electrical and Electronic Equipment
Restriction of Hazardous Substances Regulations
Mains Water
Water in a Vending Machine
Food Safety Act
KEY TRADE ASSOCIATIONS
Automatic Vending Association
British Water Cooler Association
European Vending Association
National Association of Cigarette Machine Operators
National Independent Vending Operators

4. Competitor Analysis
THE MARKETPLACE
LEADING MACHINE AND PARTS MANUFACTURERS
Automatic Products (UK) Ltd
Company Structure
Current and Future Developments
Financial Results
Autonumis Ltd
Company Structure
Financial Results
Azkoyen UK Ltd
Company Structure
Current and Future Developments
Financial Results
Crane Merchandising Systems Ltd
Company Structure
Current and Future Developments
Financial Results
DarenthMJS Ltd
Company Structure
Current and Future Developments
Financial Results
Deutsche Wurlitzer UK
Company Structure
Current and Future Developments
Financial Results
ETNA Vending Technologies UK
Company Structure
Current and Future Developments
Financial Results
FAS UK International Ltd
Company Structure
Financial Results
Mars UK Ltd
Company Structure
Current and Future Developments
Financial Results
N&W Global Vending Ltd
Company Structure
Current and Future Developments
Financial Results
The Vending Corporation Ltd
Company Structure
Current and Future Developments
Financial Results
Westomatic Vending Services Ltd
Company Structure
Current and Future Developments
Financial Results
Leading MACHINE OPERATORS AND DISTRIBUTORS
Autobar Group Ltd
Company Structure
Current and Future Developments
Financial Results
Bunzl Vending Services Ltd
Company Structure
Current and Future Developments
Financial Results
Coffee Point PLC
Company Structure
Current and Future Developments
Financial Results
Selecta UK Ltd
Company Structure
Current and Future Developments
Financial Results
24seven Vending Ltd
Company Structure
Current and Future Developments
Financial Results
Sinclair Collis Ltd
Company Structure
Financial Results
Vendia Ltd
Company Structure
Current and Future Developments
Financial Results
Other Suppliers
Aramark UK
Associated Vending Services Ltd
Drinkmaster Holdings Ltd
Fags (Machines) Ltd
The Midshires Group Ltd
The RefreshU Group
Snack Point Ltd
Sodexho UK Ltd
Springbank Industries Ltd
SSL International PLC
UK Vending Ltd
COMMODITY AND MERCHANDISE SUPPLIERS
Aimia Foods Ltd
Eurogran International Ltd
Other Suppliers
BT Redcare
G2 Integrated Solutions
Vianet PLC
DISPOSABALES AND COMPONENTS
Huhtamaki UK Ltd
Nebrak Ltd
Veriplast International
OUTSIDE SUPPLIERS
MARKETING ACTIVITY
Exhibitions

5. Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITES
THREATS

6. Buying Behaviour
Consumer Penetration
School Meals
Smoking
Sodexho University Lifestyle Survey
Food in Hospitals 61

7. Current Issues
EUROPE
THE POLITICAL SCENE
Vended Food and Drink in Schools
Ban on Junk Food Advertisements
HEALTH
The Health Education Trust (Real Choice) Initiative
Health Bill Receives Royal Assent
PRODUCT DEVELOPMENT
Demand for Healthy Snacks
Thermochromic Technology
Selling More than Drinks
LEGISLATIVE CHANGES
Age Discrimination
CORPORATE
THE ENVIRONMENT
Waste of Electrical and Electronic Equipment
Restriction of Hazardous Substances Regulations

8. The Global Market
INTRODUCTION
THE US
JAPAN
EUROPE
FUTURE GROWTH MARKETS

9. Forecasts
Introduction
THE ECONOMY
Gross Domestic Product
Inflation
Unemployment
Population
FORECASTS 2007 to 2011
By Market Sector
Refreshment Machines
Cigarette/Tobacco Machines
Other Machines
Market Growth
FUTURE TRENDS
Cashless Vending
Other Technological Advances

10. Company Profiles
24seven Vending Ltd
Autobar Group Ltd
Bunzl Vending Services Ltd
Crane Merchandising Systems Ltd
Selecta Uk Ltd
Sinclair Collis Ltd
Westomatic Vending Services Ltd

11. Consumer Confidence
METHODOLOGY
KEY FINDINGS THIS QUARTER
THE WILLINGNESS TO BORROW
Confidence Slips Slightly
Significantly More Adults Are Willing to Borrow
SPENDING FROM SAVINGS
Little Change in Spending from Savings
Saving Grows in Relative Importance

12. Further Sources