The Trends On Milk ATM Business In Kenya 2023
Milk vending ATM machine, popularly known in Kenya as milk ATM, is an innovation for retailing milk, with automation design to dispense chilled, pasteurized, and ready to drink milk. Automation offers several comparative safety and business opportunities in milk retailing. Automation minimizes milk handling, which should enhance hygiene and assure quality and safety to consumers. Automated milk dispensing is a quicker and easier means to measure any volume of milk that a consumer may want.
An ATM is an automated facility that dispenses chilled, pasteurized, ready-to-drink milk that is sold unpackaged. The ATM offers several advantages. For the business, they eliminate packaging and processing which lower retail prices, and automated business transactions ease monitoring of sales turnover. Consumers expect ATM milk from Milk ATM to enhance hygiene and offer affordable milk of any desired volume, matching their variable purchasing capacities.
Recent economic surveys in Kenya show a steady growth in sales of processed milk and dairy products (KNBS, 2016). The demand is likely greater among urban consumers, given their higher incomes and changing dietary habits with trend towards more milk and meat. Coupled with this increase are innovative businesses that have emerged to deliver affordable pasteurized milk to consumers through dispensing machines, popularly known as ‘milk ATMs’ in Kenya.
Milk ATMs are now widespread in Kenya and are located in various strategic outlets: retail shops, farms, cooperatives, supermarkets and milk bars. As part of the growing Kenyan dairy industry, the ATM enterprises are expanding, even as safety of fluid milk remains a highly debated issue of public concern. Operating an ATM requires reliable power and a clean water supply to ensure milk quality is not compromised. Regulations require that the ATM is cleaned once every 24 hours to assure high quality of milk and to minimize loss from spoilage. If you are keen follower of our articles, you will notice that companies such as Tassmatt Limited supplies Milk ATM Vending Machines that have self cleaning capacity. A user does not need to clean it manually.
Though milk ATM is an emerging innovation in milk retailing, information about the ATM as a retailing enterprise and their value offer for quality milk is scanty. On this Milk ATM Kenya Website, we normally highlight most of our findings at a consumer and business point of view. We collect information from the raw field and this helps us to improve the quality of Milk ATM Machines manufactured and supplied by tassmatt.com in Kenya, the quality of milk too.
The growing milk ATMs retail innovation offers good business opportunities and is attracting consumers
because of the competitively priced milk they offer. The exponential growth in milk retailing through ATMs is indicative of its potential to expand the country’s level of milk processing and this expansion could reduce the
challenges of the dominant raw milk market in Kenya.
Message To Potential Milk ATM Investors In Kenya
- The milk ATM market segment has potential to be a game changer in expanding the formal milk market in Kenya.
- While the exponential growth of the ATM milk market is concentrated in a few towns; under right conditions this can expand to other towns.
- Affordability of ATM milk offers the potential of upgrading the formal milk market share, especially if quality concerns are addressed. The raw milk market is the biggest competitor for ATM milk.
- ATM milk is purchased by consumers of all income categories, but mostly by low- and middle-income earners.
- Some consumers’ perceptions of quality and safety of ATM milk impedes growth of the segment.
- The ATM milk market has stimulated a diverse business ecosystem with enormous business and employment opportunities, also for youth and women.
Development can further be boosted by policy and regulations and Business development support.