Hookah Tobacco Market

Global Hookah Tobacco Market Size (2024 to 2032)

As per our analysis report, the global Hookah Tobacco Market is expected to reach USD 1772.70 million by 2032 from USD 1075.15 million in 2024, growing at a compound annual growth rate (CAGR) of 6.45% during the forecast timeline. Direct channels have the largest share in the hookah tobacco market during the forecast timeline. The Middle East and African regions, followed by Europe, account for the large market share in the hookah tobacco market.

Global Hookah Tobacco Market Drivers

The hookah tobacco is also known as Shisha or water pipe tobacco. The rising popularity and social acceptance of hookah tobacco across the world drive the market growth during the forecast period. It is gaining huge popularity among the young adults. Shisha smoking is frequently observed as a social activity and is enjoyed in various settings like hookah lounges, cafes, and social gatherings. Across the world, the cultural significance and social acceptance of shisha tobacco contribute to the rising demand.

The expansion of hookah lounges and bars in different countries across the world would be expected to significantly contribute to the growth of the hookah tobacco market. These places provide people with a dedicated space to enjoy their hookah smoking in a social environment. The increase in demand has led to the establishment of new hookah bars and lounges in different venues.

The popularity of hookah smoking is not only seen within its traditional cultural context but across different regions with the influence of globalization and tourism. Popular tourist destinations tourist often seek to have an experience of hookah smoking as a part of their cultural exploration. This resulted in the cross-cultural influence and the curiosity of tourists, which have driven the expansion of the hookah tobacco market.

Global Hookah Tobacco Market Restraints

Some of the major restraints to the hookah tobacco market are growing health concerns and regulations, increasing prices and taxation, and changing consumer preferences. There is an increase in the awareness of the potential health risks associated with smoking. People are exposed to harmful chemicals and toxins, as shisha smoking involves the combustion of charcoal and the inhalation of the smoke that comes out. Severe health concerns related to this smoking, including lung diseases, oral diseases, and nicotine addiction, led to the implementation of strict regulations and a ban on the usage of shisha smoking in certain regions. These health concerns and strict regulations resulted in the limiting of the market growth and a decline in shisha tobacco consumption.

The price of hookah tobacco has seen a significant increase in the price of it over time due to the subjecting of hookah tobacco to various prices over time. This results in deterring the price-sensitive consumers and impacts the demand generation. Additionally, increased taxation and strict regulations on tobacco products and hookah tobacco resulted in accessibility and affordability. This further led to a decline in market growth.

REPORT COVERAGE

This research report on the global hookah tobacco market has been segmented and sub-segmented based on product type, flavor, distribution channel, and region.

Global Hookah Tobacco Market By Product Type

• Strong Hookah Tobacco
• Mild Hookah Tobacco
• Light Hookah Tobacco

Strong hookah tobacco is expected to have a large market during the forecast period in the hookah tobacco market. It is followed by mild hookah tobacco. There is an expected substantial growth rate for light hookah tobacco. The hookah tobacco is available at the special parlous, restaurants, bars, and cafes and is distributed through direct channels. Among the young generation, the sharing of hookah tobacco has become a widespread practice.

The cafes and restaurants have gained good revenue by incorporating hookah into their menu. The hookah tobacco is proliferating across the world in different venues, which helps in fostering tobacco consumption in this form. The adoption of the consumption of hookah smoking has been widespread in many states and localities.

Global Hookah Tobacco Market By Flavor

• Fruit Flavor
• Confectionary Flavor
• Spices
• Beverages
• Blended Flavors
• Others

The fruit flavor segment accounts for a large share of the hookah tobacco market during the forecast timeline. This is followed by the spice flavor. The market is seeing significant growth in the trend with the addition of new flavors in hookah tobacco. The direct distribution channel is used for offering the option of hookah smoking in special parlous, restaurants, and bars.

Global Hookah Tobacco Market By Distribution Channel

• Direct Channel
• Indirect Channel

Direct distribution channels account for the largest share of the hookah tobacco market during the forecast period. Next, a large market share is accounted for by the indirect channels. The rise in the acceptance of hookah tobacco in social environments such as cafes and lounges provides an opportunity for market growth soon. Regardless of the adoption of smoke-free workplace legislation in different states and localities, tobacco stores and hookah bars are continuing their operation. These are often exempted from the requirements of prohibiting smoking in public places as they sell tobacco, and these are classified as tobacco retail establishments.

Global Hookah Tobacco Market By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Middle East and Africa are expected to have a large market share, followed by Europe in the hookah tobacco market during the forecast period. Hookah tobacco is often consumed with their peers in social settings. The hookah initiation and use is mostly due to the influence of peers, as hookah tobacco usage is socially accepted among colleges and universities. Based on a survey, it is said the students believe that hookah tobacco is not as addictive as cigarettes and they can quit as and when they want. This resulted in the consumption of hookah tobacco more than 5-fold. One of the prominent driving factors for the market and use of hookah tobacco is the increase in the curiosity of the younger generation to try new smoking habits.

KEY MARKET PLAYERS

Major key players in the Hookah Tobacco Market are  Nakhla; Eastern Tobacco; Middle East for Tobacco Company (METCO); Alzawrae Company (Mazaya); Godfrey Phillips India; Starbuzz Tobacco; Flavors of Americas S.A.; Al-Amir Tobacco; Japan Tobacco Inc; Al Fakher Tobacco Factory; Cavendish Llyod Zimbabwe (CLZ); Prince Molasses; Romman Shisha; Flavors of Americans Company.

RECENT HAPPENINGS IN THE MARKET

• In 2023, the Eastern Company decided to increase the price of goods such as cigarettes, cigars, and hookah tobacco. The new price was accepted by the company’s board and filed to the Egyptian Exchange (ECX), which will be effective from March 2025. The prices of the various hookah brands have been increased recently to 2 to 3 per pack on average.
• In 2023, Cavendish Lloyd Zimbabwe (CLZ) announced the holding of the two shisha auction sales, and it is the first company to hold an auction sale for shisha tobacco. On the very first day, it has sold 60 to 80 bales, of 90 to 100 kg each. On the second day, it sold 300 bales. The company is aiming for the European and Arab markets.