News On Japan

Japan’s Vending Machine Culture On The Rocks

TOKYO - Japan was once known as a “vending machine superpower,” but the number of machines across the country continues to decline as rising prices and changing consumer habits drive people away from drink vending machines.

Younger consumers say they are using vending machines far less frequently than in the past. A person in their twenties said, “I don’t really use them anymore. Drinks used to cost around 100 yen, but now they’re close to 200 yen, and sometimes I don’t even know where the machines are.”

Another consumer in their thirties noted that convenience stores and discount retailers often offer cheaper options. “Bottled drinks at convenience stores are cheaper, and since there’s a Don Quijote nearby, I don’t really use vending machines,” the person said.

With prices rising and households becoming more budget-conscious, consumers are increasingly turning to supermarkets and drugstores where beverages are typically sold at lower prices. As a result, the shift away from vending machines is accelerating.

Major beverage companies are already feeling the impact. Ito En reported a loss of 13.7 billion yen in its vending machine business in its consolidated financial results for the fiscal year ending January 2026. Coca-Cola Bottlers Japan Holdings also recorded a loss of 90.4 billion yen in its consolidated results for the fiscal year ending December 2025.

Amid these challenges, some companies are now exiting the business entirely.

Pokka Sapporo Food & Beverage, a subsidiary of Sapporo Holdings, announced on March 5th that it will sell its vending machine business to Life Drink Company, a soft drink manufacturer and distributor, with the transaction expected to be completed around October this year. The company cited rising equipment maintenance costs and labor shortages as key factors behind the decision.

Meanwhile, DyDo Group Holdings has announced plans to remove around 20,000 vending machines.

DyDo Group posted a record net loss of 30.3 billion yen in its fiscal 2025 results. Although vending machines account for roughly 90 percent of the company’s domestic beverage business revenue, the company plans to reduce its network of about 270,000 machines nationwide by approximately 20,000 units by the end of the next fiscal year.

At the same time, DyDo Drinko is seeking new ways to differentiate its vending machine business by selling products other than beverages.

One such initiative allows customers to purchase diapers from vending machines. A reporter who tried one of the machines successfully bought a cylindrical package of diapers.

The diaper vending machines were launched in 2019 as part of a joint initiative with Daio Paper aimed at supporting families with young children. The project was also designed to distinguish the company’s machines from those of competitors, and around 800 units are currently in operation.

DyDo is also expanding vending machines that sell snacks and is strengthening its network of “mini convenience stores” installed inside corporate offices, with about 600 already in operation.

Although Japan was once widely known as a vending machine powerhouse, the number of machines nationwide has fallen significantly. After peaking at about 5.6 million units in 2000, the total dropped to roughly 3.9 million the year before last.

With prices continuing to rise and consumers increasingly focused on saving money, the beverage industry’s vending machine business is expected to remain under pressure for the foreseeable future.

Source: TBS

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