Vending in the Philippines

Euromonitor International
March 2023
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LIST OF CONTENTS AND TABLES

KEY DATA FINDINGS.................................................................................................................. 1
2022 DEVELOPMENTS ............................................................................................................... 1
Greater vibrancy seen in vending ............................................................................................. 1
Coffee vending seeing expansion ............................................................................................. 1
PROSPECTS AND OPPORTUNITIES......................................................................................... 1
Economic recovery will drive demand over the forecast period ................................................ 1
Cashless payment will help drive growth .................................................................................. 2
CHANNEL DATA .......................................................................................................................... 2
Table 1 Vending by Product: Value 2017-2022 ......................................................... 2
Table 2 Vending by Product: % Value Growth 2017-2022 ........................................ 2
Table 3 Vending Forecasts by Product: Value 2022-2027 ........................................ 2
Table 4 Vending Forecasts by Product: % Value Growth 2022-2027 ....................... 3

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VENDING IN THE PHILIPPINES

KEY DATA FINDINGS
▪ Retail value sales rise by 4% in current terms in 2022 to PHP64 million
▪ Retail sales are set to grow at a current value CAGR of 12% (2022 constant value CAGR of
9%) over the forecast period to PHP115 million

2022 DEVELOPMENTS

Greater vibrancy seen in vending

Thanks to the market reopening seen in 2022, there was further recovery seen in the vending
channel in this year. More workers returning to the office led to an increase in mobility in public
and transport locations, thereby giving rise to more purchases through vending machines. While
more people are moving back to their pre-pandemic mobility levels, there is still a drive for
convenience, thereby making vending a positive choice for commuters. For example, Philippine
Vending Corporation has vending machines both inside and outside of malls as well as in other
public places, which carry beverage brands such as Coke, Milo, Nestea, Nescafé etc. Other
players, such as Vending Machine PH, offer food and snacks. However, while vending sales
have been rising again since 2021, they recorded a steep decline in 2020, when mobility was
severely limited by the COVID-19 restrictions, with a return to 2019 sales levels not expected
until 2024 in current value terms.

Coffee vending seeing expansion

Coffee vending machines are not only located in hospitals and offices, but are also seeing
expansion at sites elsewhere as independent operators look to offer consumers facilities with
varying price points. Philippine Vending Corporation was making more Nescafé-focused coffee
vending machines available in 2022. Other independent brands, such as Barista Choi and Joy
Philippines, were also becoming more prominent, which enabled coffee vending to proliferate
even in more residential areas. Coffee vending, was benefiting from the need for convenience,
which was contributing to the growth in this area of vending in 2022.

PROSPECTS AND OPPORTUNITIES

Economic recovery will drive demand over the forecast period

With economic recovery and an end to COVID-19 restrictions as well as an expanding real
estate market, vending operators are expected to see greater interest over the forecast period.
There is an opportunity to expand when it comes to generating demand for vending products,
which could also eventually bolster non-food products sold via vending. For example, during the
pandemic, Cholo's Blend and Planet Vape, players in the vapour products industry in the
Philippines, opened vending machines with e-liquids and electronic vapour products. This
shows the potential for generating demand with non-food vending over the forecast period.

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Cashless payment will help drive growth

While the bulk of vending machines still require payment with cash, the increasing
digitalisation of payments in recent years could encourage vending machines to more widely
adopt such payment methods. Financial inclusion is a trend that is being seen in the retail
industry, which vending operators can look into as more consumers use e-wallets like GCash or
GrabPay. The forecast period is expected to see more vending machines offering multiple
payment options for consumers who prefer non-cash options. This will also ride on the
convenience trend that vending has been capitalising on in recent years.

CHANNEL DATA
Table 1 Vending by Product: Value 2017-2022

PHP million
2017 2018 2019 2020 2021 2022

- Other Products Vending 49.7 47.2 50.3 35.8 42.1 44.0

- Home Products Vending - - - - - -
- Foods Vending 21.9 24.2 26.7 23.6 20.0 20.3
- Drinks and Tobacco - - - - - -
Vending
- Appliances and - - - - - -
Electronics Vending
- Health and Beauty - - - - - -
Vending
- Fashion Vending - - - - - -
Vending 71.6 71.4 77.1 59.4 62.1 64.4
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Note: Vending data captures vending systems installed in public and semi-captive environments only. For
further details refer to definitions.

Table 2 Vending by Product: % Value Growth 2017-2022

% current value growth, retail value rsp excl sales tax

2021/22 2017-22 CAGR 2017/22 Total

- Other Products Vending 4.7 -2.4 -11.3

- Home Products Vending - - -
- Foods Vending 1.6 -1.5 -7.3
- Drinks and Tobacco Vending - - -
- Appliances and Electronics Vending - - -
- Health and Beauty Vending - - -
- Fashion Vending - - -
Vending 3.7 -2.1 -10.1
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Note: Vending data captures vending systems installed in public and semi-captive environments only. For
further details refer to definitions.

Table 3 Vending Forecasts by Product: Value 2022-2027

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PHP million
2022 2023 2024 2025 2026 2027

- Other Products Vending 44.0 46.1 48.2 50.3 52.8 55.2

- Home Products Vending - - - - - -
- Foods Vending 20.3 23.4 28.0 32.6 37.7 43.3
- Drinks and Tobacco - - - - - -
Vending
- Appliances and - - - - - -
Electronics Vending
- Health and Beauty - - - - - -
Vending
- Fashion Vending - - - - - -
Vending 64.4 69.5 76.1 82.9 90.4 98.5
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note 1: Forecast value data in constant terms
Note 2: Vending data captures vending systems installed in public and semi-captive environments only. For
further details refer to definitions.

Table 4 Vending Forecasts by Product: % Value Growth 2022-2027

% constant value growth, retail value rsp excl sales tax

2022/2023 2022-27 CAGR 2022/27 Total

- Other Products Vending 4.6 4.6 25.4

- Home Products Vending - - -
- Foods Vending 15.1 16.3 112.8
- Drinks and Tobacco Vending - - -
- Appliances and Electronics Vending - - -
- Health and Beauty Vending - - -
- Fashion Vending - - -
Vending 7.9 8.9 53.0
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note 1: Forecast value data in constant terms
Note 2: Vending data captures vending systems installed in public and semi-captive environments only. For
further details refer to definitions.

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