Shisha tobacco market is quite large and growing very fast. When analyzing this market, it is vital to consider product type, market size, distribution channel, major companies, and trends.
In this article, we shall discuss the various variables that play a fundamental role in the shisha tobacco industry.
Let’s dive right in:
Contents
How Big Is Shisha Market
Smoking shisha tobacco has become one of the fun activities among smokers. Most restaurants, cafes, and lounges have accepted the use of shisha tobacco, making it easily available for users.
For a long time, people have assumed that shisha tobacco is not as harmful to their health as cigarettes are. The introduction of different shisha tobacco fruit flavors is another market-fueling factor. Therefore, the hookah market has experienced a rapid growth over the years.
Economic growth has also contributed to the growth of the shisha market because people can spare an extra coin for smoking. The shisha tobacco market in 2022 was USD 946.09 million (findings by Data Bridge market research). This market value is estimated to rise to USD 1650.03 million in 20230, a CAGR of 7.2%.
Before end of the year 2023, the shisha tobacco market is estimated to go up to USD 2,909.4 million.
Dynamics in Hookah Tobacco Market
Some of the main drivers in the shisha market growth are:
Social Acceptance on the Rise
Shisha smoking is now considered a fun and social activity, especially among young adults. Shisha tobacco smoking sessions are now considered one of the best ways of creating a social environment. Smoking shisha together gives them a sense of belonging. Therefore, popularity fuel the growth of shisha tobacco market.
Acceptance by Most Restaurants, Cafes, and Lounges
Business people are now coming up with shisha tobacco lounges, bars, and restaurants. These distribution channels make it easier for users to access shisha tobacco leading to an expansion of the market.
Cross-Cultural Effects
Shisha tobacco is now smoked by foreigners and tourists who would like to experience the new culture. Cultural acceptance is another factor leading to the growth of the shisha tobacco market over the years.
Misconceptions about How Harmful Shisha Tobacco Is
Shisha tobacco smokers have, over the years, been convinced that the water in the hooker absorbs the nicotine in tobacco, making shisha less harmful. Misconceptions have led to the growth of the shisha tobacco market.
However, shisha is even more harmful than cigarettes because the smoke contains nicotine added to other carcinogenic chemicals. Besides, the smoking sessions are usually long, exposing the smoker to more harmful products.
You can also learn more about shisha tobacco health risks and precautions.
Opportunities in the Hookah Tobacco Market
There are many opportunities in the hookah market such as:
Increase in Flavor Combinations
Shisha smokers now have the privilege to order all kinds of shisha tobacco flavor combinations; manufacturers have become more creative. Some of the flavors include fruit, exotic blends, and mint. New shisha tobacco consumers are registered every day because they want to try the various flavors available.
Trendy Image of Hookah
Hookah’s popularity is rapidly growing; most people now consider it fashionable and trendy. Everyone wants to be associated with fashion, as is mostly portrayed through social media leading to the growth of the shisha tobacco market.
Challenges within the Shisha Tobacco Market
Even with the growing market in the hookah tobacco industry, there are certain challenges you will deal with such:
Rising Health Issues and Regulations
Shisha tobacco is associated with various health issues caused by the toxins and chemicals found in the smoke. Health issues such as lung conditions, nicotine addiction, and oral health are the main reasons some regions have banned the use of shisha tobacco. Such restrictions and regulations can lead to a decline in the shisha tobacco market growth.
Increasing Prices and Taxes
Generally, higher taxation results in an increase in pricing, leading to a decline in shisha tobacco demand. Higher prices will lead to slower market growth over the years.
Future Changes in User Preferences
People are slowly getting to understand the harmful nature of shisha tobacco to their health. In fact, there are some consumers are trying to adopt better and safer opportunities. Although this may affect the demand, but it will be very insignificant.
Hookah Shisha Tobacco Market Trends
Types of Shisha Tobacco
Strong shisha tobacco – shisha tobacco made from black or dark brown tobacco leaves that offer high amounts of nicotine with a strong tobacco flavor.
Mild shisha tobacco – a shisha tobacco which is stronger than light shisha but lighter than strong shisha.
Light shisha tobacco – shisha tobacco made from light leaf tobacco is known as light shisha tobacco because its nicotine content is low.
The strong shisha tobacco flavor is the leading shisha tobacco type with the highest market value.
Shisha Tobacco Flavors
- Fruit flavors
- Chocolate flavors
- Mint flavors
- Caramel flavor
- Blended flavors
- Beverage flavors
By flavor, shisha tobacco with chocolate flavor is in higher demand, creating the influence required for market growth.
Shisha Tobacco Distribution Channels
Some of the distribution channels for shisha tobacco include bars, lounges, restaurants, and online marketing.
Conclusion
The shisha tobacco market is currently growing rapidly due to various benefits, health effects assumptions, and fashion trends. However, this growth will slow down due to its harmful health effects and strict regulations in the coming years.
More Resources:
- Global Shisha Market – Source: Data Bridge
- Shish Industry Outlook – Source: FMI
- Hookah Tobacco Industry – Source: Verified Market Research
- Hookah Tobacco Industry Analysis – Source: Tech Navio