The UK’s vending, coffee services and automated retail sector generated £3.78 billion in revenue in 2025, marking a 3.3% increase year-on-year and placing the industry 5% above pre-pandemic 2019 levels, according to the latest Census & Market Report from The Vending & Automated Retail Association (AVA).

The association said the sector outpaced wider UK economic growth, which stood at 1.4%, with traditional vending and office coffee service (OCS) operations contributing £3.13 billion in total revenue. Product revenue within those segments rose 6.8% year-on-year to £2.28 billion, nearly 10% above pre-Covid levels.

Among the strongest-performing categories, cold beverage revenues increased 15.4%, food revenues rose 12.2% and snack revenues grew 5.7%, while hot beverage revenues were up 4.1%. Operators reported an average revenue increase of 7% in 2025, with 90% expecting further growth this year.

The report identified standalone smart fridges as the fastest-growing format in the sector, with installations rising by around 50% year-on-year to 2,850 units. The technology, which uses RFID tags, weight sensors and cameras to automatically charge customers for items removed, has gained traction in hybrid working environments where staffed catering is less viable.

Micro markets also continued to expand, reaching 785 installations, up 8% year-on-year, reflecting growing demand for flexible and convenience-led unattended retail formats.

Cashless payment adoption also accelerated across the sector. According to the AVA, 95% of UK pay-vend machines are now fitted with cashless technology, up 5% compared to 2024, while around 30% of machines no longer accept cash. Of transactions made on enabled machines, 84% are now cashless, with 62% completed via mobile phone.

The report also highlighted the higher spending associated with digital payments, noting that cashless consumers spend on average 100% more per transaction than coin users.

Meanwhile, the coffee-to-go segment generated £645 million in product revenue from 33,200 machines, representing annual growth of 8%. The average coffee-to-go serve was priced at £2.89, compared to £0.56 for a traditional vending machine hot drink.

The AVA added that quality-focused technologies continue to gain ground within the market, with more than 40% of new tabletop machines now equipped with fresh liquid milk modules for barista-style beverages.

David Llewellyn, chief executive of the AVA, said the sector had undergone significant transformation since the pandemic.

“The 2025 Census confirms an industry that has not simply recovered from Covid, it’s transformed in the process,” he said. “This industry has always been underestimated, and while the rest of retail has been struggling with customer demands, vending and automated retail has been quietly growing by investing in technology that actually aids customer experience, raising its game on quality and finding new opportunities to shine.”

Llewellyn also warned that proposed UK government legislation to ban the sale of energy drinks to under-16s could negatively impact operators’ revenues. He noted that AVA members already follow voluntary guidelines preventing the sale of high-caffeine drinks in publicly accessible vending machines.