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29.10.2018 17:47:00

Vending machines in Russia are strengthen their presence and becoming more sophisticated and user-friendly.

2017 has become key positive stage in Russian vending market development. For the first time in the last three years, new vending machines sales grew by 30% compared to 2016, whereas the revenue from sales via vending machines amounted to RUB 55.3 billion (by 3.5% y-o-y).

According to European Vending & Coffee Service Association report for 2018, Russia is 7th among countries in terms of vending machines quantity.

The vending machines assisted sales are structures as follows:

· 59% hot beverages

20% cold beverages

18% snacks

2% food products.

According to the projection for vending industry development presented by Boris Belotserkovsky at the opening of International Forum Vending in Russia within the scope of Exhibition of Vending Technologies Vendexpo, the outlook is impressive. By 2022, the quantity of vending machines in Russia may reach 270,000 making the growth rate of vending industry equal to that of the retail segment.

Such developments are supported by amendments of the Federal Law 54-FZ. Initial wording assumed that all vending machines should be equipped with cash registers to ensure data transfer to the tax service. However, in July 2018, it was decided that mechanical vending machines, vending machines for water and for milk, as well as parking machines should be exempt from the cash register installation, whereas individual entrepreneurs employing up to 10 people should be provided with the grace period for cash register installation until 2019. Moreover, vending machines were relieved of the use of printed receipts and were provided with regulated tax deduction and usage of QR codes,, etc.

Key Trends

Vending machines in Russia are becoming smarter and more sophisticated. The share of machines equipped with telemetry, devices for non-cash payments and other digital tools keeps growing steadily.

Another trend was going into “premium segment” of coffee, namely the transition from instant ingredients to ground coffee, as well as the growth in sales of coffee-to-go format coffee.

The Russian vending market keeps up with global trends, which are expressed in the aspiration for environmental friendliness, so plastic cups are less and less common in vending machines in Russia.

The vending industry is also seeing the emergence of other trends. Thus, the number of FMCG networks (Coca-Cola, Jacobs, Mars, etc.) involved in the vending business and launching their own line of vending machines is growing, which is increasing supply and tightening competition on the market.

An important trend of the industry development has become a high demand for equipment leasing, allowing entrepreneurs to start their own vending business from scratch or upgrade the existing fleet of vending machines under optimal conditions.

Russian vending development takes different shapes. For example, ice cream machines are frequent for the streets of Russian cities in the summer season. They attract the attention of consumers in the South of the country, in the Central region, in the Urals, and in Siberia. According to the Russian National Vending Association, in Russia there are about 100 -150 vending machines, however, the market has a potential for growth.

Besides, Russia sees the active development of self-servicing technologies market. The most popular formats are car washes and laundries. According to sources, the share of self-service car washes in Russia is only 15%, and it is expected to grow 4 times by 2025 [ttps://]. The main cities of the self-service car wash market development comprise Moscow and St. Petersburg, Voronezh, Kaliningrad and Belgorod [].

Concurrently with the self-service car wash networks development, large cities are facing growth of the rental services of bicycles, scooters and cars due to an expansion of self-service systems.

Major international events allow vending and self-service systems to improve financial performance and occupy certain niches in the market. The World Cup provided the industry with good momentum. The official merchandise of the venue was available through vending machines.

The presence of vending machines in public spaces is growing, and expanding to the metro, airports, railway stations, stadiums and other large nodes and objects mastered by vending.

In general, Russian vending meets the key international trends in the development of automated sales and demonstrates steady growth and development.

The industry’s outlook is high on the back of huge volumes of the Russian market, and the presence of many undeveloped spaces, areas and niches.

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