Market Players Scaling-up OOH and RTD Premium Coffee Options

Manufacturers in the fully automatic beverage machines market are addressing the growing consumer demand for products that offer a true bean-to-cup experience in novel coffee and espresso machines. This has catalyzed the need for quality coffee drinks in restaurants and ready-to-drink (RTD) beverages at home.

As such, manufacturers are offering a range of one-touch fully automatic coffee and beverage machines to engage with customer preferences. Smart technology-enhanced manual machines and customizable drip coffeemakers are enhancing the coffee experience of consumers.

There is a high growth potential for fully automatic beverage machines, since the industry-wide demand for premium coffee options is on the rise. For instance, Costa Coffee — a U.K.-based global coffee brand, serves premium coffee options through its prominent channel of more than 8,000 fully automatic vending machines. Also, ready-to-drink coffee is catching up with the soft drinks category in terms of sales, as the global out-of-home (OOH) and RTD segments were valued at ~US$ 360 and ~US$ 85 billion, respectively, in the year 2017.

fully automatic beverage machines market infographic

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Increased Focus on Expanding Portfolio in Professional Espresso Machines

Apart from the shift in customer preference for coffee and other beverages, technological innovations are creating potential incremental opportunities for manufacturers in the fully automatic beverage machines landscape. The global volume sales for fully automatic beverage machines accounted for ~940 thousand units in 2018, being the highest for machines in the price range of US$ 2,000 to US$ 4,000. This shows the strong spending capacity of consumers for high-end coffee and brewing machines.

Seamless integration into the existing working of fully automatic beverage machines, such as supplementation of optional milk systems, has provided consumers with the freshly filtered coffee option. Also, individual inclusion of hot and cold milk foam additives compliments the process of professionally produced coffee.

Manufacturers in the fully automatic beverage machines ecosystem are focusing on offering complete beverage solutions under one roof. They are expanding their portfolios to offer hot, cold, and frozen beverage machines in the fully automatic space. Innovative espresso machines act as a strategic addition in fully automatic beverage technology for the fast-growing coffee market. For instance, in April 2019, Electrolux — a Swedish multinational home appliance manufacturer, announced its acquisition of UNIC S.A.S — a French manufacturer of professional espresso machines, to increase its product offerings for beverage services in the hospitality industry.

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Growing Need for Advanced Interface and Maintenance-free Process

The automatic cleaning cycle of beverage machines adds as a maintenance-free aspect for consumers in the fully automatic space. However, certain functional limitations and cost concerns of fully automatic beverage machines are likely to influence the growth of the market.

Many consumers have encountered loud gear-turning noises with the self-cleaning procedure, which eventually led to a wastage of large volumes of water. Fully automatic beverage machines are also prone to the risk of spilling liquid.

Also, the high price tag of fully automatic beverage machines hampers smooth sales, which could be one of the reasons for its just above-moderate CAGR of ~6%. To overcome these challenges and limitations, manufacturers are developing better interfaces with sensor-controlled monitoring of position and functionality for machines and advanced technology to efficiently manage water wastage.

fully automatic beverage machines market segmentation

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Analysts’ Viewpoint

The advanced technology of fully automatic beverage machines is projected to witness growing prominence amongst consumers and stakeholders in the hospitality industry in Europe and Asia Pacific. Manufacturers are focusing on increasing their product offerings under one brand to emerge as leaders for complete beverage solutions in the hospitality industry. Speed and multi-cup brewing in less than a minute add as important factors for consumers while choosing a machine. However, automatic beverage machines face tough competition from manual machines, as the latter are observed to make great-tasting espresso and other coffee options. As such, manufacturers are innovating on professional coffee machines that freshly grind and brew coffee beans to provide premium coffee options.

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Fully Automatic Beverage Machines: Definition/Overview

  • Fully automatic beverage machines dispense liquid beverages.
  • Fully automatic beverage machines are convenient and easy to use, as they can serve a large number of customers in a short time period.
  • School, colleges, and companies are installing fully automatic beverage machines, as they dispense healthy beverages quickly.

Global Fully Automatic Beverage Machines Market: Regional Overview

  • Asia Pacific is likely to be the most attractive region in the global fully automatic beverage machines market during the forecast period, due to increasing urbanization and development of mid-sized cities (tier II or tier III), and increase in the number of fast food outlets that provide quick services to their customers.
  • Increase in the number of corporate houses and manufacturing industries will attract fully automatic beverage machine installations. Fully automatic beverage machines can dispense beverages quickly and easily. Thus, the fully automatic beverage machines market is expected to witness significant growth in the near future.

Global Fully Automatic Beverage Machines Market: Trends

  • Growth in popularity offers opportunities to OOH coffee makers to position their brands through fully automatic beverage machines. For instance, in June 2019, China-based coffee company, Luckin Coffee Inc., planned to set up new self-service coffee vending machines in public places, such as office buildings and schools in China, to compete with its U.S.-based rival company Starbucks Corporation. Vending machines would be branded as 'Luckin Coffee Express'. Users will be able to use the Luckin App to order coffee that would be ready within 30 seconds after scanning the QR code.
  • In August 2018, European company Selecta Group acquired Express Vending Limited, a U.K.-based vending solutions supplier. This is likely to create a new avenue for the growth of the fully automatic beverage machines market.

Global Fully Automatic Beverage Machines Market: Drivers, Opportunities, and Restraints

  • Europe is witnessing a rise in the consumption of OOH beverages. Growth in the consumption of healthy beverages in offices is mainly due to the increase in refreshment points. In Germany, fully automatic beverage vending machines are used in corporate offices. Rise in cashless methods of payments in an automatic vending machine is also driving the demand of fully automatic beverage machines.
  • Expansion of coffee chains is also propelling the fully automatic beverage machines market growth. For instance, Costa Coffee has opened around 2,120 outlets in the U.K., followed by Starbucks. In the U.K., Starbucks has around 900 outlets.
  • Different countries have different beverage preferences. Fully automatic beverage machine manufacturers must take into account the tastes and preferences of local consumers.
  • Network connectivity is a major component in fully automatic beverage vending machines. Modern fully automatic beverage machines are controlled by mobile apps. If there is a connectivity issue with the vending machine software, the system will not work properly.

Global Fully Automatic Beverage Machines Market: Key Segments

  • The global fully automatic beverage machines market has been segmented based on product, electric drive, price range, HoReCa, and region.
  • Based on product, the beverage machines segment accounted for a leading share of the global fully automatic beverage machines market in 2018, as these machines are cost effective and easy to use.
  • In terms of electric drive, the AC motors segment accounted for a major share of the global fully automatic beverage machines market in 2018. It is estimated to maintain its dominant position during the forecast period.
  • The demand for fully automatic beverage machines priced between US$ 2,000 to US$ 4,000 is higher in the global market than other machines falling under different price ranges. Thus, this price range segment is expected to grow at a significant rate from 2019 to 2027.
  • Quick-service restaurants is the major HoReCa segment of the global fully automatic beverage machines market.
  • Europe is projected to lead the global fully automatic beverage machines market during the forecast period.

Global Fully Automatic Beverage Machines Market: Competition Landscape

  • The global fully automatic beverage machines market is highly competitive, with the presence of several global and regional players.
  • Companies are investing in product innovation and development to increase their customer base. For instance, in April 2019, PepsiCo launched a fully automated drinks machine that offers an alternative to using single-use plastic for corporate installation. Employees can bring their own bottle to fill up from a range of product variants.
  • Several corporate companies are installing this product as part of their plastic-free initiative.

Global Fully Automatic Beverage Machines Market – Scope of the Report

Transparency Market Research’s recent report on the fully automatic beverage machines market, with the help of a comprehensive outlook, provides readers with an assessment of the global fully automatic beverage machines landscape. This study on the fully automatic beverage machines market analyzes the scenario for the period of 2019 to 2027, wherein, 2018 is the base year and 2017 and before is historical data. This report enables readers to make important decisions with regard to their business, with the help of a wealth of information enclosed in the study.

This TMR study on the fully automatic beverage machines market also provides data on the developments made by important players and stakeholders in the market, along with a competitive analysis. The report also provides an understanding of the strengths, weaknesses, threats, and opportunities, along with the trends and restraints in the landscape. Presented in a clear sanctioned manner, this report on the global fully automatic beverage machines market gives readers an individual understanding of the market.

Fully Automatic Beverage Machines Market: Key Questions Answered in the Report

  • How much revenue will the fully automatic beverage machines market generate by the end of the forecast period?
  • What type of fully automatic beverage machine is likely to gain the maximum market share by 2027?
  • What regions currently contribute the maximum share to the overall fully automatic beverage machines market?
  • What are the indicators expected to drive the global fully automatic beverage machines market?
  • Which region is likely to be a lucrative market during the forecast period?
  • What are the essential strategies incorporated by key stakeholders in the global fully automatic beverage machines market to expand their geographical presence?
  • What are the major advancements witnessed in the global fully automatic beverage machines market?

This report answers these questions and more about the global fully automatic beverage machines market, aiding major stakeholders and key players in making the right decisions and strategizing for the advancement of their business.

Global Fully Automatic Beverage Machines Market – Research Methodology

This TMR report on the global fully automatic beverage machines market is based on a complete and comprehensive evaluation of the market, backed by secondary and primary sources. The competitive scenario of the global fully automatic beverage machines market is supported by an assessment of different factors that influence the market on a minute and granular level. By thoroughly analyzing the historical data and current trends, researchers of the global fully automatic beverage machines market arrive at predictions and estimations, and calculate the forecast for the market.

This report uses an analytical triangulation method to estimate the numbers and figures of the global fully automatic beverage machines market with both, a bottom-up and top-down approach. This detailed assessment of the global fully automatic beverage machines market, along with an overview of the landscape, is provided based on a careful examination of the avenues related to this market. Analysts’ conclusions on how the global fully automatic beverage machines market is set to grow are based on carefully-vetted primary and secondary sources.

Global Fully Automatic Beverage Machines Market – Segmentation

This report on the global fully automatic beverage machines market provides information on the basis of product, electric drive, price range, HoReCa, and region.

Product

  • Beverage Machines
  • Beverage Vending Machines

Electric Drive

  • DC Motors
  • AC Motors

Price Range

  • Less than US$ 2,000
  • US$ 2,000 – US$ 4,000
  • US$ 4,000 – US$  6,000
  • More than US$ 6,000

HoReCa

  • Quick-service Restaurants
    • Fast Food Restaurants
    • Cafeterias
    • Carryout Restaurants
  • Full-service Restaurants
    • Fine Dining Restaurants
    • Casual Dining Restaurants
    • Hotel & Club Foodservice

Region

  • North America
  • Europe
  • Asia Pacific
  • Middle East & Africa

This study also discusses the underlying trends and impact of various factors that are driving the global fully automatic beverage machines market, along with their influence on the evolution of the market. This study also offers Porter’s Five Force Analysis, value chain analysis, price trend analysis, and SWOT analysis of the global fully automatic beverage machines market, in order to elaborate the crucial growth tactics and opportunities for market players contributing to the market.