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

News On Japan
POPULAR NEWS

Record rainfall caused 19 rivers to overflow across Fukui Prefecture, flooding roads and homes, triggering landslides and temporarily forcing authorities to issue the highest-level heavy rain emergency warning from early Sunday morning.

Drones were used to deliver food and daily necessities to an isolated mountain community in Himi City, Toyama Prefecture, on August 30 after torrential rain triggered a landslide that cut off road access, while volunteers continued flood recovery work in neighboring Ishikawa Prefecture.

Two typhoons east of Japan were moving northward on August 30, with Typhoon No. 23 (Banlan) overtaking Typhoon No. 22 (Artau), although neither storm is expected to have a direct impact on Japan.

A 9-minute, 13-second drone video filmed inside Aeon Mall Kumamoto two days after the deadly explosion has provided a detailed view of the destruction, showing collapsed ceilings, heavy dust and widespread damage that may have affected between one-third and nearly half of the shopping center.

Strong Typhoon No. 18 was moving northwest through the East China Sea on the night of August 26, gradually pulling away from Okinawa and the Amami Islands as lingering rain, strong winds and high waves were expected to ease. As of 9 p.m. on August 26, the typhoon was over waters north-northwest of Kume Island and moving northwest.

MEDIA CHANNELS
         

MORE Business NEWS

Toyota Motor plans to introduce passenger vehicles equipped with advanced automated driving technology from 2028, allowing drivers to travel with almost no manual operation, including taking their hands off the steering wheel on ordinary roads.

Consumer prices in central Tokyo rose 1.8% in August from a year earlier, with the pace of inflation accelerating for a third consecutive month as higher food prices continued to put upward pressure on household costs.

Tokyo stocks rose on August 28, with the Nikkei 225 closing at 66,405.56, up 273.58 points, or 0.41%, as information-technology, software, automaker and selected semiconductor-related shares gained after a U.S. technology rally, while investors remained cautious before Federal Reserve Chair Kevin Warsh’s Jackson Hole speech.

Japan's toy market continues to expand despite the country's declining number of children, reaching a record 1.1664 trillion yen in fiscal 2025 as manufacturers increasingly target adults and introduce products reflecting social issues ranging from sustainability to investment.

Tokyo stocks slipped on August 27, with the Nikkei 225 closing at 66,131.98, down 130.18 points, as early buying in artificial intelligence and semiconductor-related shares following Nvidia’s strong earnings forecast faded into profit-taking, while the broader TOPIX edged higher for a sixth straight session.

Seven-Eleven Japan and Yamato Transport announced on August 26 that they will introduce self-service shipping machines allowing customers to send parcels without lining up at a staffed checkout counter.

Tokyo stocks rose on August 26, with the Nikkei 225 closing at 66,262.16, up 405.73 points, or 0.62%, as investors bought back selected semiconductor and financial shares, although trading was thin ahead of Nvidia’s earnings and uncertainty remained over artificial intelligence valuations, the yen and Bank of Japan policy.

Tokyo stocks fell on August 25, with the Nikkei 225 closing at 64,980.53, down 0.8%, as investors sold semiconductor and electronics shares ahead of Nvidia’s earnings while a weak yen, elevated bond yields and renewed U.S. pressure on Iran kept risk appetite subdued.