Impact of inflation in Japan on the vending machine market

In Japan, vending machines are found not only in post offices, parks, train stations, roadsides, but also in remote places like Mount Fuji. But now, the business is under pressure as inflation affects the purchasing power of consumers.

Baishak 14, 2083

Agency

Impact of inflation in Japan on the vending machine market

We use Google Cloud Translation Services. Google requires we provide the following disclaimer relating to use of this service:

This service may contain translations powered by Google. Google disclaims all warranties related to the translations, expressed or implied, including any warranties of accuracy, reliability, and any implied warranties of merchantability, fitness for a particular purpose, and noninfringement.

Tokyo (Agency) – Demand for drinks sold through ‘vending machines’ is declining in Japan. This has affected the long-standing vending machine culture.

Vending machines in Japan are found not only in post offices, parks, train stations, roadsides, but also in remote places such as Mount Fuji. But now, due to inflation, the business is under pressure as consumers’ purchasing power is affected.

Vending machines usually hold drinks, snacks, cigarettes, food or other small items.

In recent years, inflation has risen sharply in Japan, which has also directly affected the beverage industry. As fuel, transportation, electricity and maintenance costs increase, operating vending machines has become more expensive. In addition, the cost of manpower to fill, repair and manage the machines has also increased. For all these reasons, the profits of companies are also decreasing.

As profits decline, large companies are reducing the use of vending machines. Some companies have decided to remove thousands of machines, while others are preparing to sell their vending businesses. 

Vending machines were once very popular in Japan because they were easy and readily available. But now, due to high prices, consumers are choosing cheaper drinks available at supermarkets, convenience stores, etc. It is relatively more expensive to buy drinks from vending machines than at such stores.

That is why consumers are turning to other options. Another reason is the increase in environmental awareness. Consumers are starting to carry reusable bottles, 

That has also reduced the use of vending machines. Experts say that the use of vending machines will not disappear completely. But in the future, companies are expected to place machines only in strategic and high-demand areas to protect profits.

Agency

Link copied successfully