Tobacco Hookah Market Size 2024-2028

The Tobacco Hookah market size is estimated to grow by USD 705.2 million, at a CAGR of 4.57% between 2023 and 2028. The market witnesses growth in product launches alongside the burgeoning popularity of hookah bars, lounges, and cafe culture, coupled with the rising presence of organized retail outlets. This trend reflects evolving consumer preferences and lifestyle choices regarding use of tobacco, driving market expansion across various sectors. The increasing frequency of new product introductions caters to changing consumer tastes and preferences, fostering innovation and competitiveness within the market. Moreover, the growing appeal of hookah bars, lounges, and cafe culture underscores a shift towards experiential consumption and socialization, fueling the demand for tobacco hookah and hookah charcoal. Additionally, the proliferation of organized retail outlets enhances product accessibility and visibility, facilitating market penetration and consumer engagement in diverse retail environments.

Tobacco Hookah Market Overview

The market shows an accelerate CAGR during the forecast period.

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Tobacco Hookah Market Segmentation

The tobacco hookah market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Product Outlook 
  • SHT 
  • MHT 
  • LHT 
• Application Outlook 
  • FrHT 
  • BevHT 
  • CfHT 
  • ScHT 
• Region Outlook 
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • North America
    • The U.S.
    • Canada
  • South America
    • Brazil
    • Argentina
    • Chile

By Application

The preference for luxurious lifestyle experience will fuel the FrHT segment, which in turn increases the market growth. The market for fruit-flavored tobacco hookah caters to individuals seeking a luxurious lifestyle experience. This segment of the shisha tobacco industry has witnessed significant growth due to the ban on flavored cigarettes in various regions, including the US. Major vendors in this market, such as SOCIALSMOKE, Shop Starbuzz, Japan Tobacco Inc., Fumari, and Hertz Flavors GmbH and Co. KG, offer a wide range of hookah products infused with aromatic substances and flavor components. These include popular fruit flavors like apricot, blueberry, apple, orange, strawberry, pineapple, and guava. The preparation of hookah involves mixing tobacco with water and glycerin. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

By Product

The market share growth by the SHT segment will be significant during the forecast period. The strength is defined by the buzz produced by the flavour intensity and nicotine content in tobacco hookah. It contains a high amount of nicotine content and produces a good level of buzz. It is usually preferred by regular consumers and is popular in countries such as Egypt, Saudi Arabia, Jordan, Turkey, and Australia. 

The SHT segment showed a gradual increase in market share with USD 1,318 million in 2018 and continued to grow by 2022.

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Moreover, factors such as the rising number of drug stores offering SHT products and the increasing frequency of new product launches featuring SHT are expected to drive the growth of the global SHT market during the forecast period. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segments along with the reasons for growth from 2017 to 2027. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

By Region

Middle East and Africa is estimated to contribute 31% to the growth of the global market during the forecast period

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Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The market encompasses specialty stores, and cafes and bars as primary distribution channels. Direct sales of flavor-infused tobacco hookah are prevalent, while indirect sales through theme-based restaurants, lounges, and cafes also contribute significantly. Innovative products, such as hookah fruits and mint, chocolate, and other unique flavors, cater to the young population's growing demand. Automated technologies have streamlined smoking activities, making the experience more enjoyable and efficient. Tobacco hookah comes in various forms, including Virginia tobacco, Burley tobacco, and Maassel. Consumer spending on tobacco hookah and related leisure activities has been on the rise due to disposable income and increasing popularity. Hence, such factors are driving the market in MEA during the forecast period.

Tobacco Hookah Market Dynamics

The market encompasses various products such as herbal tobacco, fruits, mint, chocolate, and flavored tobacco. These offerings cater to diverse consumer preferences, including those below the age of 18. The market reaches consumers through multiple channels, including bars and cafes, specialty stores, and direct channels. Nicotine and dopamine, two addictive substances, play significant roles in the Market. Tobacco hookah comes in various forms, including water, glycerin, and aromatic substances. Molasses and syrupy forms are also popular. Shisha, a popular hookah tobacco, is available in a wide range of fruit and confectionery flavors, as well as spices. Retailers, including those at hookah cafes, contribute to the market's growth. Growth of the tobacco hookah market is influenced by peer influence and the availability of hookah lounges and cafes. Despite the market's growth, concerns regarding the health risks associated with tobacco hookah, including cancer, remain. Hookah apparatus manufacturers continue to innovate, offering new and improved hookah tobacco products. Overall, the market is a dynamic and evolving industry.

Key Market Driver

The increasing launch of new products is notably driving the market. The global market has experienced significant expansion in recent years due to the introduction of luxurious and innovative hookah products. Fruit-flavored shisha tobacco, a popular choice among consumers, has fueled this growth. SOCIALSMOKE, a leading brand, offers a diverse range of tobacco hookah mixtures, catering to various demographics.

Moreover, these offerings include premium and artisanal products, appealing to younger consumers and those seeking a refined smoking experience. Manufacturers focus on using high-quality tobacco, water, glycerin, and flavor components to create aromatic substances that enhance the hookah smoking experience.  Therefore, such launches of innovative and new hookah products are expected to drive the global market during the forecast period.

Significant Market Trends

The rising trend of online retailing is fueling the market. The market presents lucrative opportunities for vendors as the global e-commerce sector continues to expand, accounting for approximately 12% of retail trade. This retail channel caters to both business-to-business (B2B) and business-to-consumer (B2C) transactions. The trend of spending more money online per transaction and the increasing number of online transactions are significant globally.

Moreover, factors such as the growing number of internet users and their preference for instant gratification are driving the growth of this retail sector. The sales of tobacco hookah products, including fruit-flavored shisha tobacco, mixtures, and hookah apparatus, are expected to increase as a result. SOCIALSMOKE and other leading hookah brands capitalize on this trend by offering a wide range of tobacco, water, glycerin, and flavor components, as well as aromatic substances, to cater to the diverse preferences of consumers. Therefore, this trend will support the market during the forecast period. 

Major Market Challenge

Stringent regulations on consumption may impede tobacco hookah market growth. The global market for tobacco hookah products faces challenges due to legal uncertainties and restrictions in various countries. Despite its association with a luxurious lifestyle and the popularity of fruit-flavored tobacco mixtures, SOCIALSMOKE, shisha tobacco, and other tobacco hookah offerings, numerous jurisdictions have imposed bans or limitations.

Moreover, in India, for example, the government has urged states to prohibit hookah bars in non-smoking areas, while Maharashtra enforces stringent regulations. Similarly, Saudi Arabia prohibited the sale of flavored tobacco products, including shisha tobacco. Hookah tobacco is typically prepared by mixing tobacco with water, glycerin, and flavor components or aromatic substances. Thus, the increasing bans on smoking and the use of these products may prove to be a major threat to the global market during the forecast period.

Company Overview

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market forecasting growth and analysis.

• Key Offering - Alfakher Tobacco:  The company offers shisha hookah in a variety of flavors, such as apple, apricot, berry, and cardamom among others.

The tobacco hookah market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

British American Tobacco Plc, Chan Ning Dekang Biotechnology Co. Ltd., Cloud Tobacco, Eastern Tombac and Tobacco Est., FLAVORS OF Americas Co., Fumari, Haze Tobacco LLC, Hertz Flavors GmbH and Co. KG, Japan Tobacco Inc., La Montagne Verte Sarl, MUJEEB WAJID GROUP, Philip Morris International Inc., Romman Tobakko, Shisha Tobacco Factory, SOEX India Pvt. Ltd., Starbuzz Tobacco Inc., and Ugly Hookah.

Tobacco hookah market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

The tobacco hookah market experiences significant growth due to the increasing popularity of Hookah smoking worldwide. This trend is driven by various factors such as the unique taste and social experience associated with Hookah smoking. The market is witnessing an influx of new players, offering a wide range of tobacco hookah flavors and designs. Manufacturers are focusing on product innovation and quality to cater to the diverse preferences of consumers. The market is segmented based on tobacco types, flavors, and regions. Tobacco types include Virginia, Burley, and Oriental. Flavors include fruit, mint, and chocolate, among others. Marketing strategies for tobacco hookah include product differentiation, pricing strategies, and promotional activities. 

Additionally, companies are leveraging social media platforms to reach out to younger demographics and create brand awareness. The market landscape depends on Hookah flavors, hookah users, spending power, and mixture. The market is expected to continue its growth trajectory due to the increasing acceptance of Hookah smoking as a social activity and the availability of a wide range of flavors and designs. Moreover, the market is witnessing the entry of new players, leading to increased competition and innovation. The market is also influenced by factors such as changing consumer preferences, regulatory policies, and economic conditions. Overall, the market presents significant opportunities for growth and innovation.

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What are the Key Data Covered in this Tobacco Hookah Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across Middle East and Africa, Europe, APAC, North America, and South America
• Thorough market research and growth analysis of the market's competitive landscape and detailed information about companies
• Comprehensive market forecast analysis of factors that will challenge the growth of market companies

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