India Hot Beverage Vending Machine Market Research Report: Forecast (2023-2028)

Market Insights & Analysis: India Hot Beverage Vending Machine Market (2023-28)

The India Hot Beverage Vending Machine market is projected to grow at a CAGR of around 12% during the forecast period, i.e., 2023-28. The factors attributing to the growth are the rising usage of vending appliances in commercial offices. A hot beverage vending machine is a self-operating machine that produces & dispenses hot drinks such as coffee, tea, soups, etc. These machines are typically found in public places like corporate offices, airports, railway stations, and educational institutions since they provide customers with convenient & quick service. India has emerged as a pivot center for commercial offices in recent years. The country's growing economy & skilled labor force & the government’s favorable policies have attracted many IT & tech giants, namely Amazon, Google, etc., to set up commercial offices in major cities of India like Mumbai, Bangalore, Hyderabad, and Delhi. This, in turn, is creating profitable opportunity, thus enhancing the India Hot Beverage Vending Machine market share.

The upward push in the number of corporate buildings is driving the demand for these machines considering they offer an easy & quick way for employees to access hot beverages such as coffee & tea and other specialty drinks during work hours. In addition, the prevalence of these vending machines in commercial offices eliminates the requirement for employees to go outside the building to have coffee or tea, which saves time for employees & helps to improve productivity. Moreover, these machines are more cost-effective for commercial offices since they require minimal maintenance compared to traditional coffee shops or cafes. Therefore, commercial buildings are readily installing these machines to provide their employees with flexibility & convenient alternative for their beverage needs, thus, driving market growth.

Moreover, the rise in the organized retailing sector, including malls, shopping complexes, etc., is also enhancing the demand for these vending machines in India since they are installing these appliances to generate additional revenue streams. The malls & multiplexes seek to offer a convenient & accessible hot drink solution to customers to deliver maximum consumer satisfaction, which would surge the consumer arrivals in the malls & retail spaces. Moreover, these retail spaces are incorporating these machines to have a competitive advantage over other malls & shops since their installation of appliances makes them an attractive option for consumers & enhances their shopping or movie-going experience.

In addition, the inclination of public authorities such as the Indian Railway Corporation, etc., and private entities to install these machines at the places such as railway stations, airports, etc., to provide passengers convenience is also resulting in the rising agreements between the manufacturers like Godrej, Cafe Desire, etc., & the authorities. Consequently, these emerging partnerships would further surge the number of these vending machine installations, thus enhancing India’s Hot Beverage Vending Machine market in the forthcoming years.

Market Dynamics

Key Driver: Surging Number of Corporate Offices in India to Amplify the Market Growth

The number of corporate offices in India is rapidly increasing owing to factors such as the government’s favorable policies & the rising foreign investments in the Information Technology (IT) sector. Moreover, the country has witnessed a surge in its economic growth. According to the World Bank, in 2022, India registered around 6.9% overall growth amid global uncertainties such as the Russia-Ukraine War & Spread of COVID-19. Thus, the emergence of India as one of the fastest-growing economies across the globe made the country more suitable for establishing corporate offices.

Further, corporate offices are one of the prominent end-users of the market since offices are generally equipped with these machines to provide their employees with a convenient & feasible option. The employees tend to go to the cafeterias to drink tea or coffee, which costs them money & takes a lot of their time, thus to curb the issues faced by the employees, the organizations are planting hot vending machines in their buildings. In addition, with the surge in the number of corporate offices across the country, the demand for these machines is predicted to grow in the forthcoming years.

Possible Restraint: Stiff Competition from the Local Tea Shops Limit the Market Penetration

Hot beverage vending machines are most commonly used in urban areas & places with high regular power supply since these machines operate on electricity. As a result, the market penetration of these vending machines is limited to the urban areas since rural areas like Dharnai, Etah, etc., in the country still face electricity supply issues. Hence, the public authorities in these areas abstain to install these machines in their buildings since it does not act as a cost-effective solution. Moreover, the working population of the rural areas relies on the local tea shops near their offices, thus restraining the market.

Moreover, in urban regions, individuals’/office goers also rely on local tea shops to fulfill their daily beverage needs since the manual tea-making process is customizable, and customers conceivably choose the amount of sugar & milk they would prefer in the beverage. Thus, the preference of individuals towards the local tea shops owing to the availability of personal customization is limiting the India Hot Beverage Vending Machine market. 

Growth Opportunity: Partnerships Between Appliances Manufacturers with the Government Authorities to Augment the Market 

Over the past few years, the demand for hot beverage vending machines has arisen from corporate offices. However, to increase their potential consumer reach, the manufacturers of vending apparatus like Godrej, Cafe Desire, etc., are seeking partnerships with public authorities like Airport Authority India, etc., to install these vending machines in public spaces such as railway stations, airports, etc. Moreover, the partnership would provide the manufacturers to increase their potential consumer reach since the consumers that commute via the railways & airplanes are significantly more and look for some snacks at these places.

In addition, individuals visiting private banks are also higher, consequently becoming potential customers for these machine. Thus, corporate entities namely private banks, private hospitals, etc., are seeking agreements with the manufacturers to plant these machines in their buildings and premises. These agreements would function as an opportunity for the manufacturers to widen their consumer reach and thus drive the India Hot Beverage Vending Machine Market in the forthcoming years.

Key Trend: Technological Advancement & Integration of Technology in Vending Machine Gaining Traction

With the evolution of technology & the prevalence of digital technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), etc., vending machine operators are significantly trying to integrate these technologies in their vending machines to provide flexibility to consumers. Digital adoption by the companies has led to the launch of several digitally equipped vending apparatuses having features such as customization options & touchless facilities. These features provide consumers with hassle-free payment options & customization options, as a result, end-users are gradually inclining towards installing these devices. In 2021, Cherise India Private Limited launched a range of digital vending machines based on next-generation technologies, which would provide consumers with access to their digital platform to give them real-time data on their consumption patterns. These advancements have led companies to get more consumer engagement, thus, aiding in enhancing the India Hot Beverage Vending Machine Market size.

Market Segmentation

Based on Type:

• Table Top
• Free Standing

Of all, Table Top Vending Machines witnessed the highest growth in the historical years owing to the benefits it offers over Free Standing vending machines. The table top machines are comparatively compact, as a result, they are ideal for smaller corporate spaces & require less maintenance. Thus, companies or organizations with few human resources rely on these machines. Moreover, these apparatuses are more cost-effective since they are less expensive than a free-standing one. Hence, the organization seeks them as the best solution for providing hot beverages such as coffee, tea, etc. Besides, Free Standing is also likely to witness growth in the upcoming years owing to the gradual adoption by consumers due to the presence of customizable features in it. 

Based on End Users:

• Corporate Offices
• Educational Institutes
• Airports
• Transportation Facilities
• Hotels & Restaurants
• Others

The Corporate Offices witnessed a surge in growth during the historical period owing to the rise in the installation of these vending machines in the offices to provide employees with free beverage services. These vending machines lessen the burden of hiring an employee that only makes tea or coffee for the other employees in the organization. Thus, it is a cost-effective solution for organizations & enterprises eventually. Owing to these financial & human resource advantages, the corporate offices opt for the hot beverage vending machine, thus, increasing the share of corporate offices in the market.

Besides, the airports are also emerging as the potential end-users in the market since official authorities such as Airport Authority India & others are increasingly releasing tenders for the vending manufacturers to install their appliances on the premises to provide passengers with the best quality service. Thus, the growing agreements between the manufacturers & the official airport authorities would further enhance the demand in India in the forthcoming years.

Regional Projection

Geographically, the market expands across:

• East
• West
• North
• South

The prime demand for hot beverage vending machines has emerged from the North region due to the existence of several corporate offices in the cities like Delhi, Noida, Gurugram, etc. Furthermore, rapid urbanization & the change in consumer behavior due to rising disposable income has facilitated the installation of these appliances in malls, cafeterias, and others, in the region to attract more consumers.

In addition, the South region also held a significant share of the market owing to the prevalence of major IT companies in the cities like Hyderabad & Bangalore. Moreover, the cities in the south region are fully developed & are slowly adopting digital solutions like installing napkin vending machines & QR-based coin vending machines to solve the common problems confronted by the individuals in the state. Thus, the government's encouragement to install vending apparatuses to improve the quality of life of individuals would further enhance the market in the forthcoming years.

Recent Developments by the Leading Company

• 2021: The company “Coffee Day” initiated the talk with Private Equity (PE) funds, such as Samara Capital, Premji Invest, etc., to sell its office vending business. In addition, the company also withdrew serval vending machines from the customer locations owing to the disruptions & fiscal challenges caused by COVID-19.

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