Commentary

How market forces keep pushing ice vending

Given time, the ice vending business will draw in a wider range of entrepreneurs, all of them eager to capitalize on current market trends and meet the evolving expectations of consumers.

Image: Everest Ice & Water

November 6, 2023 by Dan Doromal — Vice President Operations, Everest Ice and Water Systems

The ice vending business continues to grow at a fast pace, a trend that will continue given several global market trends. These include the business' cross generational appeal, increasing technological capabilities and improved sanitation.

As a side hustle or a full-fledged business, ice vending is proving to be an attractive pursuit for a wide range of age groups, including Baby Boomers, Gen Xers, and Millennial entrepreneurs.

Among the entrepreneurs in this business, most of them tend to be Gen Xers and Millennials. That said, the Baby Boomer entrepreneurs, while smaller in number, tend to invest more heavily due to their greater disposable income. As for Gen Z, they haven't quite entered the market just yet, but we do see many of them marketing their parents' machines through social media channels.

Entrepreneurial appeal

The reasons for getting into the ice vending market come down to two factors. First, it's very easy to get into this business since all you need to do is purchase a machine. Second, ice is a commodity that will always be in demand. The same might be said for consumable snacks and refreshments, but these items are more typically thought of as indulgences rather than necessities. And in any case, health-conscious consumers are limiting their intake of soda and chips, whereas no one is giving up ice for Lent. This aligns with the business mantra of selling customers what they need, not what they want.

Technological sophistication

Ice vending machines have come a long way technologically in just a few short years. What started out as a fairly simple coin-operated machine has morphed into a highly sophisticated device that uses cashless payment systems, touchscreen interfaces, remote monitoring and other smart technologies.

The latest machines are also far more efficient, generating less wastewater and providing a higher-quality product through improved cooling and filtration systems.

Not every vending manufacturer is churning out high-caliber vending machines. But there is a clear overall trend toward increased technological sophistication. Part of this is driven by the need to create more user-friendly and profitable machines that will attract investors. The other factor is the consumer side. People, particularly Gen Zers, desire and increasingly expect vending machines to be eco-friendly and technologically sophisticated.

User friendliness

Ice manufacturers that provide bagged ice at retail locations are still a major industry, but they are at a disadvantage against ice vending machines. Bagged ice can run out of stock pretty quickly during the busy summer months.

By contrast, an ice vending machine will continue to generate ice once it's been hooked up to the water mainline. This allows locations to continue selling ice with no delays.

Sanitation

Another factor that increases the market competitiveness of ice vending is that there are far fewer opportunities for contamination. Plastic ice bags can split during transportation or handling, resulting in the product being lost. A typical bag of ice can sit for days before being sold and will pass through innumerable hands before reaching the customer. All of this
increases the odds of contamination, which isn't an issue with vending machine-produced ice.

In summary, the ice vending niche in the vending machine industry has witnessed significant growth in recent times, with several noteworthy trends shaping its future. These trends are grounded in intergenerational appeal, technological innovation and market competitiveness.

Given time, the ice vending business will draw in a wider range of entrepreneurs, all of them eager to capitalize on these trends and meet the evolving expectations of consumers.

Vending

About Dan Doromal

Dan Doromal, Co-Owner and Vice President of Operations for Everest Ice and Water Systems, has been instrumental in helping his company climb to the top in reputation, earning a number of prestigious awards ranking Everest as one of the fastest-growing and best-performing companies in the country. Under Dan’s leadership, Everest continues to set, meet, and exceed ambitious goals for growth in all arenas - sales, size, performance, and more.

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