Los Angeles, CA (PRWEB) February 21, 2014
Coffee vending machine renters have a buyer power score of 3.3 out of 5.0, with scores closer to 5.0 reflecting a stronger level of negotiation room for buyers. According to IBISWorld procurement analyst Hayk Muradyan, “buyer negotiation power is estimated to decline in the three years to 2013 due to an environment of low supplier profit margins in a saturated market”. Price movements are dependent on the number of businesses, employment levels and per-capita coffee consumption rates. Although these figures declined slightly during the recession, they have shown stable and steady growth in recent years. This has led to greater demand and has caused suppliers to raise the rental rates of market products, reducing buyer negotiating power.
However, buyer purchasing power has remained strong due to the fragmented nature of this market. Operators, distributors, and food management companies compete intensely to maintain or gain new market share in regional and local networks. This has not only limited price growth, but it has also led to greater buyer leverage in negotiations. Buyers have also benefited from low volatility in coffee vending machine rental prices. “Suppliers have been able to purchase coffee supplies in bulk to secure favorable discounts, limiting their exposure to significant price movements despite volatile coffee prices”, says Muradyan.
Continued improvement in the economic environment is expected to further increase coffee vending machine rental rates as the number of businesses, employees and per-capita coffee consumption sustain their upward trends. Suppliers will also face input cost increases from rising coffee prices, forcing them to pass on portions of these costs by charging higher rental rates. Price growth will, however, continue to be mitigated by the level of market saturation. Nevertheless, buyers should seek long-term contractual arrangements to secure a steady and reliable coffee vending machine rental, and to reduce their exposure to increases in coffee prices and potential volatility from unpredictable negative events. The top four vendors in the market are Aramark Corporation, Compass Group PLC, Goodman Vending and Food Services, and Nestle SA.
For more information, visit IBISWorld’s Coffee Vending Machine Rental procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of coffee and other hot beverage vending machine rental services. Vending companies rent or lease freestanding, table top, in-cup and bean-to-cup coffee vending machines. Suppliers also provide maintenance and repair services for their machines. This report excludes the rental of vending machines that are used for food and cold beverages.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.