Cigarette Vending Machine Market Size, Share, Price, Growth 2030

Industry Prospective:

The global cigarette vending machine market size was worth around USD 1.3 Billion in 2022 and is predicted to grow to around USD 1.9 Billion by 2030 with a compound annual growth rate (CAGR) of roughly 4.5% between 2023 and 2030. The report analyzes the global cigarette vending machine market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the cigarette vending machine industry.       

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Cigarette Vending Machine Market: Overview

A computerized, programmable device known as a "cigarette vending machine" distributes cigarettes or non-tobacco goods in exchange for coins. Cigarette vending machines are typically situated in restaurants, stores, club/casino bars, or locations with gaming machines that are solely accessible to people over the age of 18. While some vending machines only accept cash as payment, contemporary vending machines accept credit cards as well as cash for electronic commerce. Customers are kept happy by cigarette vending machines since they have a free choice of purchase at any time of day.

Cigarette vending machines are widely used in bars, clubs, hotels, and subway stations. One important reason fueling the market's growth is the rising number of individuals who are addicted to smoking. Demand for cigarette vending machines is being fueled by significant investments in bars and nightclubs as well as accessibility. The market's expansion has been spurred by the introduction of cigarette vending machines and their wealth of features that help retailers better analyze consumer behavior.

Key Insights

• As per the analysis shared by our research analyst, the global cigarette vending machine market is estimated to grow annually at a CAGR of around 4.5% over the forecast period (2023-2030).
• In terms of revenue, the global cigarette vending machine market size was valued at around USD 1.3 billion in 2022 and is projected to reach USD 1.9 billion, by 2030.
• The growing number of smoking across the globe is expected to drive market growth over the forecast period.
• Based on the payment mode, the swiping card segment is expected to grow at the fastest rate during the forecast period.
• Based on the operational mode, the automatic segment is growing at the highest CAGR during the forecast period.
• Based on the application, the pubs and nightclubs segment is expected to hold the largest market share during the forecast period.
• Based on region, North America is expected to dominate the market during the forecast period.

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Cigarette Vending Machine Market: Growth Drivers

The benefits of the cigarette vending machine drive the market growth

One of the main advantages of purchasing cigarettes from a vending machine is that it gives customers constant, unhindered access to the product, enabling them to buy at a time that is convenient for them. The machine also offers a wide range of cigarette brands. Additionally, because there is no longer a need for workers to offer the products, these machines have low overhead costs. These machines also save customers time and are simple to operate. Thus, during the forecast period, the global cigarette vending machine market expansion is anticipated to be driven by the advantages of cigarette vending machines.  

Cigarette Vending Machine Market: Restraints

Prohibited sales of tobacco products hinder the market growth                                       

The sale of tobacco products from vending machines is strictly prohibited in many nations, including Thailand, India, and others. The market expansion of cigarette vending machines is expected to be constrained by strict regulations prohibiting the sale of unhealthy, junk food, and tobacco products in public places, institutions, and the great majority of commercial locations. Many public venues and workplaces, including schools, hospitals, public transportation, and government buildings, have a strict no-smoking policy. Airports, hotels with 30 or more rooms, and restaurants with 30 or more seats are the only places where smoking is permitted by law. Outdoor spaces like stadiums, train stations, and others are no-smoking zones. Thus, during the forecast period, this is anticipated to impede the cigarette vending machine market growth.

Cigarette Vending Machine Market: Opportunities

Technological advancement provides a lucrative opportunity

The Internet of Things is being used by manufacturers to design and distribute vending machines. To improve machine monitoring, it is now possible to collect real-time data and construct an end-to-end IoT solution. As a result, it is now easier to collect information on consumer experience and expectations and to give customers a better buying experience. As a result of continual innovation and technology advancements, the sector today provides more modern mobile solutions to shift customer behavior. The cigarette vending machine industry demand has been significantly impacted by advancements like speech recognition, interactive displays, and big data integration that have made vending machines more useful and user-friendly for consumers.

Cigarette Vending Machine Market: Challenges

The adverse effects of smoking a cigarette pose a major challenge

The adverse effects of smoking cigarettes are expected to pose a major challenge to the cigarette vending machine market growth over the forecast period. As smoking cigarette is a leading cause of lung cancer across the globe. For instance, according to the Centers for Disease Control and Prevention, the leading cause of lung cancer risk is cigarette smoking. About 80% to 90% of lung cancer deaths in the US are attributed to smoking cigarettes. Thus, these facts hinder market expansion.

Cigarette Vending Machine Market: Segmentation

The global cigarette vending machine industry is segmented based on payment mode, operational mode, application, and region.

Based on the payment mode, the global market is bifurcated into cash and swiping cards. The swiping card segment is expected to grow at the fastest rate during the forecast period owing to the growing trend of paying through digital cash. For instance, as per secondary analysis, by April 2020, there were on average 137 digital payments per machine, compared to an average of 135 cash transactions, and an average digital sales volume of US$235 as opposed to US$160 for cash in the same month.

Customers can access cigarette vending machines quickly and easily by simply swiping their cards. These machines simply demand a card swipe or a wave of your phone, making purchases quick and easy. Furthermore, because the customer is often there when the payment is made, it provides better security and carries less risk. Additionally, swiping cards eliminates the need for manual entry, which lowers the likelihood that inaccurate information will be submitted. Besides, the cash segment is expected to capture a significant portion of the market over the forecast period due to ease of operation and maintenance.

Based on the operational mode, the global cigarette vending machine industry is bifurcated into manual and automatic. The automatic segment is growing at the highest CAGR during the forecast period. The growth in the segment is owing to the adoption of innovative and latest technology.

Based on the application, the global market is segmented into pubs and nightclubs, hotels and restaurants, public places, and others. The pubs and nightclubs segment is expected to hold the largest market share during the forecast period. This can be related to the fact that they let people buy cigarettes inside the store. On the other hand, the hotels and restaurants segment is expected to grow at the highest CAGR over the forecast period owing to the demand for luxury dining and tourism.

Recent Developments:

• In March 2022, the cloud-managed AI-enabled vending machine, which was introduced by Digital Media Vending International, would improve the user experience of vending machines by utilizing augmented reality, product recognition, personalized experiences, and more. 
• In March 2020, Tobacco vending machines made by Wurlitzer have the highly successful Ageviewers age validation mechanism. In the Netherlands, there are more than 10,000 old tobacco vending machines. These machines sell tens of thousands of packs of cigarettes each year to individuals who are under the legal smoking age.

Cigarette Vending Machine Market: Report Scope

Cigarette Vending Machine Market: Regional Analysis

North America is expected to dominate the market during the forecast period

North America is expected to dominate the global cigarette vending machine market during the forecast period. The growth in the region is attributed to the presence of a large number of cigarette smokers. According to the Centers for Disease Control and Prevention, a projected 12.5% (30.8 million) of American adults were current smokers in 2020. Moreover, the rising population, the rise in recreational activities, the rising disposable income, and the developing trend of midweek parties. Because they come with cutting-edge technology like a transaction management system, software and platform management, an operations management system, inventory management, and customer analytics, smart vending machines are outpacing traditional vending machines in terms of adoption. Furthermore, the market growth in North America is anticipated to accelerate due to the rising demand for self-service technologies at retail outlets to incorporate high-tech innovations and advancements and automate sales development in a variety of application areas such as retail stores, shopping malls, supermarkets, and ongoing projects.

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Cigarette Vending Machine Market: Competitive Analysis

The global cigarette vending machine market is dominated by players like:

• Harting System
• Hangzhou Joegoo Technology Co. Ltd.
• Peatix Inc.
• Digital Media Vending International LLC
• Fuji Electric Co. Ltd.
• Sielaff GmbH
• Azkoyen Group
• GM Global Solutions
• Jofemar Vending
• Slim Line
• E Team International (Adimac SRL)
• Advanced Cigarette Vending Machine
• Among Others.

The global cigarette vending machine market is segmented as follows:

By Payment Mode

• Cash
• Swiping Card

By Operational Mode

• Manual
• Automatic

By Application

• Pubs and Nightclubs
• Hotels and Restaurants
• Public Places
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa