Vending machines disappearing in Japan, the 'vending machine kingdom'

Japan, long celebrated as the "vending machine kingdom," is witnessing a significant decline in its beverage vending machines, with numbers dropping by approximately 20% over the past decade.

The decrease is attributed to a combination of factors, including rising costs for raw materials, electricity, and labor. This financial pressure, coupled with intense competition from low-price beverages sold in supermarkets and drugstores, has severely impacted the profitability of vending machine operations.

Major beverage companies are scaling back their vending machine businesses. Pokka Sapporo Food & Beverage decided to transfer its vending machine division to LifeDrink Company in March, citing the challenging business environment caused by increased product prices due to raw material costs, consumer frugality, rising maintenance expenses, and labor shortages. Daido Group plans to remove about 20,000 underperforming machines from its national total of 270,000 by early next year.

In response, the industry is seeking innovative solutions by incorporating new features into vending machines. Kirin Beverage, for example, recently introduced machines with "gacha" (capsule toy) functionality in Tokyo and Chiba. This strategy aims to offer an "experience" beyond simple transactions, allowing customers to receive an extra bottle of children's health drink after purchasing a specific beverage and turning a dedicated handle.

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The company side stated that the vending machine business environment has become difficult due to rising product prices due to raw material costs, consumer frugality, rising equipment maintenance costs, and labor shortages.