[Sunday Culture] Why Japan Became a Vending Machine Paradise

Cash Culture and Preference for Contactless Services Keep Popularity High
Diverse Product Range Including Beverages, Ice Cream, and Ramen

Editor's NoteOn a lazy Sunday for both body and mind, a reporter from the International Department brings you an interesting read related to Japanese culture.

[Asia Economy Reporter Jeon Jinyoung] Japan is known as the "vending machine paradise." You can easily find vending machines anywhere on the streets. There are so many varieties that not only beverages but also cigarettes, ice cream, ramen, and almost any product are sold through vending machines.

In Korea, the atmosphere is more that most drinks or goods are bought at stores like convenience stores rather than vending machines. It seems that even within Japan, some people are curious about why there are so many vending machines. There was even a Japanese university student who analyzed "the reason why Japan has so many vending machines" in a business administration report. Today, we will introduce Japan's "vending machine culture."

Current Coca-Cola vending machine in Japan. (Photo by Coca-Cola official website)

First, when did vending machines start to appear in Japan? They were widely distributed starting in the 1960s. The first soda vending machine introduced in Japan was a Coca-Cola vending machine. At that time, 880 units were installed nationwide. When you inserted a coin, a bottled cola would come out, and a bottle opener was placed in front of the vending machine as well.

The canned beverage vending machines like the ones we see today were developed in the 1970s. It is said that Tanida Toshikage, the founder of the Japanese food and beverage company POKKA SAPPORO, came up with the idea. While driving on the highway, he stopped at a rest area to have a cup of coffee but ended up waiting in line for over 30 minutes.

He thought, "It would be nice to have coffee that you can simply drink in the car," and came up with the idea of developing a vending machine that could sell both cold canned coffee in summer and warm canned coffee in winter. After four years of repeated consultations with an electronic parts company, a vending machine capable of selling both hot and cold beverages was introduced in 1973.

With the launch of canned coffee and various canned beverages in the 1970s, vending machines rapidly spread throughout Japan. The vending machine business was so successful at the time that there was even a saying in the industry: "Installing one vending machine is equivalent to opening a store." Additionally, the widespread circulation of coins at the time increased the popularity of vending machines, which were convenient for purchasing with coins.

Why has this trend continued in Japan? Various analyses have been presented by the media and social networking services (SNS), and the common reasons are as follows.

Soy sauce vending machine in Japan.

First is public safety. Even when vending machines are installed by the roadside or in parks, it is rare for anyone to break or steal from them. Because public safety is guaranteed, vending machines that sell products without an owner naturally increased. For this reason, the vending machine industry structure is said to be systematically organized. Since there are so many vending machines, many specialized companies have emerged that handle maintenance, product replenishment, and management of recycling trash bins.

Another reason is that cash payment is possible. Japan is still a place where cash is used more frequently than cards. There are various types of coins such as 1 yen and 5 yen, which can sometimes be difficult to handle. In such cases, vending machine beverages are very convenient for processing coins. When Japan did not face high inflation as it does now, it was popular because you could buy a drink from a vending machine with just one coin.

There is also an interesting analysis that Japanese people prefer contactless services. They seem to appreciate not having to order face-to-face with a clerk at a store.

Japan's Myeongranjeot Vending Machine.

Lastly, a somewhat sad story involves office workers. Although Japan also follows a 40-hour workweek standard, busy office workers prefer using vending machines because they have little time.

Targeting this demand, recently in Japan, vending machines have started selling "food-type beverages" such as canned corn soup, curry, and miso soup for people (mainly office workers) who do not have time to eat meals. Recently, Korean-style beverages like Samgyetang and stews have appeared. I have never tried them, but seeing Japanese office worker acquaintances post photos on Instagram suggests they are somewhat trendy.

For various reasons, the vending machine craze continues to this day. According to the Japan Vending System Manufacturers Association, as of December 2020, there are 4.04 million vending machines in Japan, with more than half being beverage vending machines. The number is three-quarters of that in the United States, but considering Japan’s smaller land area compared to the U.S., you can imagine how many there really are. The annual sales from vending machines alone amount to about 5 trillion yen (48 trillion won), which is 1 trillion yen higher than the U.S. According to the industry, as of 2017, there are almost no new places left to install vending machines in Japan. It is said to have reached saturation.

Canned stew-flavored beverage released by Ito En. (Photo by Ito En website)

Additionally, vending machines selling various products such as cigarettes, ice cream, ramen, and meat also contribute to entertaining consumers. During this business trip, I discovered vending machines for pollock roe and soy sauce, which made me once again realize that Japan is truly a "vending machine country." If you have a chance to visit Japan, finding unique vending machines might be an enjoyable experience.