Rising Prices Threatening Drink Vending Machines in Japan

Tokyo, April 7 (Jiji Press)–Rising prices and labor costs are threatening drink vending machines in Japan, which beverage makers have considered to be cash cows because the machines sell products at their suggested retail prices. According to Tokyo-based research firm Inryo Soken, vending machines used to be the largest sales channel for beverages but have been overtaken by supermarkets, which sell such products at lower prices, and then by convenience stores in 2024. As beverage makers raise their suggested retail prices, consumers increasingly feel that products sold at vending machines are relatively expensive. The number of soft drink vending machines nationwide has declined from 2.47 million in 2014 to 2.04 million. “The profitability (of vending machines) continues to worsen,” an Inryo Soken official said. Among major beverage makers, Sapporo Holdings Ltd. on March 5 announced its withdrawal from vending machine operations, selling off the business, including about 40,000 vending machines, to Lifedrink Co. DyDo Group Holdings Inc. plans to reduce its number of vending machines in Japan by about 20,000 in fiscal 2026 from some 270,000. Meanwhile, Coca-Cola Bottlers Japan Inc., the industry leader with about 650,000 vending machines, is working on structural reforms in light of tough market conditions. The company posted an impairment loss of 90 billion yen, mainly from its vending machine operations, for the year that ended in December 2025. At the same time, the company decided to utilize data collected through its vending machines and original app to determine where to set up such machines, which products to offer and when to restock. Suntory Beverage & Food Ltd. released its own cashless payment app, Jihanpi, last year. The app allows users to make payments by holding their smartphones over the reader. The average sales among vending machines increased after the machines were made available for the app. Asahi Soft Drinks Co. has developed a vending machine that absorbs carbon dioxide, attracting companies and schools amid a rise in environmental consciousness. “We’ll be able to gain new fans by making our vending machines more appealing (to consumers),” Asahi Soft Drinks Chairman Taichi Yoneme said. END [Copyright The Jiji Press, Ltd.]