Japan inflation slows demand for vending machine drinks

Japan’s famous vending machine industry is facing new pressure as rising prices push consumers toward cheaper alternatives such as convenience stores and drugstores.

Found across the country in parks, train stations, post offices and even on Mount Fuji, vending machines have long been a symbol of convenience in Japan. However, inflation and higher living costs are reducing demand for drinks sold through the machines.

Beverage company DyDo Group Holdings announced last month that it will remove around 20,000 vending machines, or about seven percent of its nationwide network, by January 2027 as part of efforts to rebuild profitability.

Pokka Sapporo Food & Beverage also said in March that it would sell its 40,000-machine vending business to Osaka-based Lifedrink Co.

Company officials say one of the biggest challenges is that vending machines traditionally sell drinks at fixed list prices, while retailers are able to offer discounts that attract price-conscious shoppers.

Consumers say cost is a major reason they are buying fewer drinks from machines. Some noted that bottled water from vending machines can cost around 130 yen, while convenience stores and drugstores often sell the same products for less.

Industry analysts say rising fuel, transport and labor costs are also reducing profits for operators, making it harder to compete with traditional retailers.

Environmental awareness is another factor, as more people are choosing to carry reusable bottles and refill them instead of buying drinks outside.

Despite the slowdown, experts believe vending machines will remain a part of daily life in Japan because of their unmatched convenience and widespread presence.

Operators are now expected to focus on placing machines more strategically in locations where demand remains strong, especially in areas with limited access to shops.