FMCG firms in India bet on vending machines to propel growth in snacks-on-the-go

With an uptick in demand for on-the-go snacks and beverages, Fast-Moving Consumer Goods (FMCG) majors in India from Coca Cola and Nestle to Tata Consumer, Godrej & Boyce are betting on vending machines as business growth channels.

The companies also plan to introduce their product offerings through vending machines at airports, lounges and HoReCa (hotels, restaurants, cafes, catering) channels.

The Indian vending machine market is predicted to grow at a CAGR of 17.2 per cent by the end of 2028 according to a strategic consulting and market research firm, BlueWeave Consulting.

Coca-Cola has said that it sees more growth opportunities in the vending machine space in the country.

“On the retail front, we have opportunities in the vending space. The vending channel offers opportunities in areas including airports, and shopping malls. It is a segmented approach that offers new opportunities. It will take time to scale but it is one of the interesting opportunities for a market like India. As it continues to develop, we are looking to be able to participate in the growth through this type of investment,” John Murphy, President & CFO, of The Coca‑Cola Company told businessline in a recent interaction.

Globally, the retail vending machine market size, valued at $51.91 billion in 2021, and growing at 10.7 per cent annually till 2030 as per Grand View research.

Tea, beverages and salt maker Tata Consumer Products(TCPL) started the vending machine business in 2023 and supplies vending machines to commercial establishments in the country. The company has crossed over 2,000 machines.

“The major factors driving the growth of this market are growing adoption of cashless transactions, increasing demand for food and beverages in airports & railway stations,” states a 6Wresearch report on the India vending machine market. In the country, Nestle India, Godrej & Boyce, Coffee Day and Atlantis also offer vending machines.

“We have a 5 per cent share from the vending machine business and you will find us being aggressive in the space. We aim to build a strong position as the vending machine business opens the whole TCPL portfolio. We are also operating a pilot on high-end vending machines for hotels and restaurants as they require high-capacity and high-quality machines. We plan to roll it out in multiple cities,” said Sunil D’ Souza, Managing Director and Chief Executive Officer of Tata Consumer.