ARLINGTON, Va. — March 12, 2024 — Convenience services industry annual revenue is estimated to have reached $26.6 Billion in 2023, for the first time matching the industry’s pre-pandemic revenue level. The findings, from The State of Convenience Services: A 2022-2023 Industry Census, just released by the NAMA Foundation, suggest that the long-awaited recovery has arrived for many, but not all, industry participants.

The Census projects a 9% average annual revenue growth rate through 2028. By this time, the industry is expected to reach a revenue of more than $40 billion.

“Historically reliant on foot traffic, the convenience services industry pivoted during the pandemic to embrace micro markets - unattended retail installations that put products everywhere that consumers work, live and play,” observes NAMA Foundation Executive Director Jennifer Bulcao. “For many operators, these investments paid off. While traditional vending is mostly flat compared to pre-pandemic revenues, the office coffee services and pantry segments continue in their recovery.”

Census findings show an uneven recovery from the effects of COVID:

• Micro markets are the primary driver of industry growth. Representing just 2% of industry revenue in 2014, micro market revenue has increased at a rate of 41% annually since 2020, today comprising 20% of all convenience services revenues.
• Vending remains the largest industry segment; however, its recovery has been prolonged. This segment accounted for a projected 68% of industry revenue in 2023, nearly even with the 2019 level of 69%. The rise of micro markets is expected to continue to affect vending revenue share.
• Office coffee service and related pantry services revenue remains well below pre-pandemic levels. A slower-than-expected return to the workplace, combined with service offering shifts, are thought to have contributed to the decline in this segment’s share of industry revenue. As of 2023, revenue in this industry segment is just over half of its pre-pandemic level.

Looking ahead, several forces are expected to drive revenue growth in the convenience services industry and among its segments. These include technology innovation, adaptability, industry consolidation, and remote work arrangements. In addition, consumer demand for “better-for-you” products and customer demand for greater sustainability are expected to become conditions of success.

Produced by the NAMA Foundation, the Census is a valuable source of information for convenience services industry leaders and an essential resource for NAMA’s Government Affairs staff. Census data frequently supports conversations with policymakers and others, helping to shape perceptions of the industry and underscoring its interests.

The State of Convenience Services: A 2022-2023 Industry Census is available for download at namanow.org/foundation/industry-census-report.