With the introduction of artificial intelligence (AI) and the Internet of Things (IoT) to vending machines, the future of vending is profitable and promising.
In this article, find out more about future vending machine trends and how these advancements could benefit your business.
Artificial Intelligence
Capabilities such as AI are what define “smart vending machines.” Implementing artificial intelligence into vending machines is revolutionary for the industry and comes with many interesting changes.
AI vending machines can collect and analyze data on products and customer behavior to boost revenue and improve efficiency.
For example, AI can assess the most popular products and place inventory purchase orders accordingly. This helps cut down on unnecessary ordering and ensures that vending machines are always stocked with the items people desire.
It can customize the customer experience by offering special discounts on frequently purchased products. If someone loves caffeinated items, an AI program can recognize this and send them coupons for energy drinks or coffee drinks, enticing them to visit the machine more often.
These programs can also use dynamic pricing to raise and lower prices based on demand. This helps customers save during slow times or on unpopular items, and owners can increase profits during peak times and on the most loved products.
Using AI-enhanced vending machines can drastically increase profits because it elevates the customer experience, streamlines operations, and improves the sustainability of the business. We’ll discuss many aspects of the future of vending machines, but AI is easily the most powerful and influential new vending machine technology.
Internet of Things
The Internet of Things, or IoT, goes hand in hand with artificial intelligence advancements. With IoT capabilities and AI programs, vending machines can access the internet.
Smart devices, such as iPhones and iPads, can connect and interact with the vending machines. Connectivity means more data collection and sharing, online payments, remote updates and servers, and so much more.
Like artificial intelligence, implementing IoT into the vending machine industry is the foundation of many other exciting trends and changes.
Reverse Vending Machines
The future of vending machines revolves around sustainability almost as much as it revolves around AI and the Internet. Reverse vending machines, or RVMs, are one of the newest advancements in this area.
Features such as sleep mode, waste-reducing inventory management, and automatic temperature adjustments help these machines use less power, making them kinder to the planet. Reverse vending machines accept used food and drink containers for proper recycling.
In the US, only about 5% or 6% of plastic is recycled into something new. Everything else falls into one of these categories:
- Items that are never placed in a recycling receptacle.
- Items that are not properly prepared for recycling, like ones with labels still on them or food or drink residue inside.
- Items that cannot be recycled at all, such as plastic bags and Ziploc bags.
The RVMs can scan, sort, strip, and clean recyclable items, ensuring they’re recycled and not sent to a landfill. They make it easy and beneficial for people to recycle.
On top of helping the planet, customers who return used containers can get a small refund for their deposit. Unlike recycling centers, RVMs are convenient and accessible and can help businesses boost sustainability.
Solar-Powered Machines
We suspect that some outdoor vending machines of the future will be at least partially solar-powered.
More and more solar panels are popping up throughout the country, on people’s roofs and in once-empty fields. Neglecting to use solar power where possible seems wasteful. The sun is an immense source of energy that could change how people power and operate vending machines, making them better for the planet.
This aspect of future vending is relatively new, but will likely become popular. Even some indoor machines might be able to use solar power if they get direct sunlight from a window or opening.
Solar power helps the planet and saves on operation costs so that machine owners can run their vending machines for much less. While solar-powered vending machines initially cost more than traditional machines, they’re more cost-efficient in the long run and represent a wonderful shift toward sustainability in the industry. Many sectors are turning toward solar power to become more energy-efficient, and the vending machine industry will very likely be part of that movement.
Subscription Models
Many services employ a subscription model: movie and TV platforms (Netflix), music streaming (Spotify), online shopping (Amazon), grocery shopping (HelloFresh), and car sharing (Zipcar) offer goods that are not one-time purchases.
Future vending machine designs are following this business model. Subscription models keep customers coming back, which is the key to a successful vending machine business. Not many vending machine owners have yet implemented a subscription model, so it’s unclear how they’ll work.
However, Coca-Cola has started implementing these pricing models in Japan. The company offers one drink per day for a monthly subscription fee. The fee is cheaper than buying a Coke every day, but consumers only save money if they get the drink daily. If customers forget, don’t have time, or just don’t want a drink one day, this puts money in the machine owner’s pocket.
Subscription models could also offer:
- Flat pricing on all items
- Exclusive offers and discounts
- Exemption from high-cost dynamic pricing
- Tiered pricing and savings
- Free products for members
Subscription models could complement loyalty and reward programs. The more customers buy, the more rewards they get, encouraging them to return. Countless companies use this clever model to entice people to buy more and enjoy the perks that come with doing so. Combining a subscription model with these rewarding programs can encourage people to make vending machines a part of their daily routine.
The best way to make a vending machine profitable is to have return customers. A subscription, loyalty, or reward model incentivizes people to use vending machines more often, creating those gold-standard, long-term customers. A subscription model reinforces their habitual use of these machines.
Mobile Vending Machines
A vending machine that comes to you? Does it get better than that? Mobile vending machines are exciting examples of the future vending machines we’re anticipating. This advancement in vending is still in its infancy, but it’s very promising.
Future vending machines could roam around buildings to entice people to buy something. They could move through a gym with Gatorade and water or roll around an office where employees can quickly buy snacks or coffee and return to work. They would be convenient in schools, apartment buildings, hotels, department stores, and many more locations.
Of course, some safety aspects need to be considered. However, with today’s technology, it may not be too long until we see these out in the world. They could be the standard size of the vending machines we’re all familiar with, but they could also be smaller, mini-fridge-sized machines that can maneuver through smaller spaces.
Maybe one day, machines will move down the street as people stop and grab their morning bagels and coffee. With IoT capabilities, customers may even track the machine’s location or request it to come to them. For a long time, the success of a vending machine has relied largely on the location, with factors like foot traffic and convenience being important influences on revenue. Mobile vending machines could change this, doing away with the need for foot traffic and boosting the convenience and accessibility of these machines more than ever.
Age Verification Systems
Selling things like wine and beer in a vending machine is complicated because not everyone is allowed to purchase these items. So, how do you handle this? You use age verification systems.
These systems use integrated scanners to scan presented IDs and verify their legitimacy. Furthermore, they can use facial recognition and other biometrics to confirm the individual matches the ID. In some ways, this is an even more secure way to verify someone’s age than an employee looking at a birth date on an ID. These systems would be almost airtight, ensuring only people old enough have access to these products.
The concept still feels risky to many business owners, but you can already find these kinds of machines in places like Las Vegas. We have no doubt they will slowly become more common.
Machine Accessibility and Engagement
Speaking of biometrics, that’s another aspect of future vending machines. The newest machines can use facial recognition, voice recognition, fingerprint scans, and auto-connects with phones to identify customers and help them access the machines. Many of these machines are also touchless, limiting the spread of germs.
Touchscreens are also a trend for future vending machines, making the machines more engaging for customers. However, these touchscreens are more than just a new way to pick your afternoon snack. Some future vending machines will have touchscreens that let customers play games, watch videos, and more.
Automated and Unattended Shops
Future vending also goes beyond the traditional machines. We’ll see unattended stores and micro-markets that can offer consumers more options than a standard vending machine. With these automated and unattended markets, vending owners can give customers more choices without spending money paying employees.
The automated markets are also more efficient than traditional stores. In some modern designs, customers don’t even need to scan items or tap a credit card.
Customers can attach their card to an account on their phone. Then, when they walk in or out of the store, the system registers their presence by tracking their phone. They can pick up the items they want around the store and leave without checking out. How? Since the systems around the doors can scan any items they took out with them, they can also automatically charge their cards. It doesn’t get faster or easier than that.
Enhanced Security
Future vending machines will also have beefed-up security. They’ll use even more secure payment systems to protect all customer information.
This is especially important with the advancements in IoT, as it makes the machines more vulnerable to hacking. With end-to-end encryption and similar security features on payment systems, customers can swipe or tap their payment methods with confidence.
Security advancements will make the physical machines more difficult to penetrate or vandalize. Smart vending machines can remotely alert companies to attempted break-ins. Adding more safety features can also protect customers with safety lights, cameras, and other monitors. Since vending machines are unattended, they can be vulnerable, but future vending machines will be more secure than ever, protecting products, profits, and people.
The Bright Future of Vending Machines
The vending machine industry is expected to increase to more than $45 billion by 2034, doubling the current value of $19 billion. The industry is becoming more connected, sustainable, interactive, fun, and diverse, catering to a wide customer base.
With these impressive advancements, including artificial intelligence, interactive games, and enhanced payment security, now is the optimal time to get into or expand your vending machine business.
If you’re ready to take advantage of these trends and be at the forefront of this thriving industry, contact us today!
