Inflation and shifting habits force Japan’s ubiquitous vending machines into reset

Japan’s vending machines, found from post offices and parks to stations and even Mount Fuji, are ubiquitous. However, inflation is reducing demand for their drinks, forcing operators to rethink their business models. Last month, beverage giant DyDo Group Holdings announced it would remove about 20,000 vending machines—around seven percent of their stock nationwide—by January 2027, aiming to reconstruct a profitable network. Pokka Sapporo Food & Beverage, based in Nagoya, also said in March it would sell its 40,000-machine operation to Osaka-based Lifedrink Co. Operators cite rising list prices as a key issue, as more people opt for cheaper drinks from convenience stores and drugstores. Costs for fuel and staff to maintain machines are also increasing, impacting profits. Kazuhiro Miyashita of Inryo Soken, a research institute focused on the beverage industry, suggests that curbing prices through cost-cutting could help operators compete. Additionally, growing environmental awareness is leading some people to bring their own bottles for refilling. Despite these challenges, vending machines remain convenient, with operators shifting toward strategic and selective placement. Examples of vending machine offerings include iced tea, canned coffee, ramen noodles, cut fruit, kimchi, and crepes. While the industry faces decline, vending machines are unlikely to disappear entirely due to their practical accessibility.