Trends, Growth, and Opportunity Analysis of Shisha Tobacco in GCC Countries

GCC Shisha Tobacco Industry Outlook 2024 to 2034

Consumption habits of shisha tobacco in GCC reveal that the regional industry is going to be valued at USD 1,115.00 million in 2024. Steep rise in shisha tobacco among youngsters is impacting the sales trends in the GCC shisha tobacco industry. By the end of the forecast tenure, the industry is pegged to be worth USD 2,066.30 million, growing at 6.4% CAGR.

Attributes	Key Insights
GCC Shisha Tobacco Industry Size (2024E)	USD 1,115.00 million
Industry Valuation (2034F)	USD 2,066.30 million
Value-based CAGR (2024 to 2034)	6.4%

Sales Analysis of Shisha Tobacco in the GCC Countries

• Increasing consumption of shisha tobacco among youngsters in the wider GCC area who are chiefly motivated by peer pressure.
• Lack or partial knowledge about the hazards of consuming shisha tobacco regularly.
• Widely available tobacco products in the GCC countries, like UAE and Kuwait, making it easily accessible to teenagers and young adults.
• Frequent visits and inclination for lounge and hookah café culture among millennials, who view it as a leisure activity. At these premises, light-flavored shisha is oft demanded.
• Luxurious hotels offer, on demand, shisha tobacco to their guests, who crave this tobacco product and view it as part of the Middle East’s culture.
• Rising insistence on shisha tobacco in social gatherings.

Restrictive Factors that Might Dissuade Vendors of Shisha Tobacco Operating in GCC

• Rising concerns over adverse health ramifications of tobacco-like products, including hookah/shisha.
• Tobacco use can pose a greater risk of lung tissue damage and increase the chances of developing lung malignancies. Increasing coverage given to awareness programs that spread this information is expected to disrupt shisha tobacco sales.
• Robust marketing campaigns stressing over harms of tobacco use and an increase in educative webinars that bring to light the dangers of consuming shisha tobacco.
• Surging programs that illumine not just health care issues, but also the financial and economic burden associated with tobacco consumption.

Category-wise GCC Shisha Tobacco Industry Analysis

Strong Shisha Tobacco to Observe Robust Sales Through 2034

Leading Product Type	Strong Shisha Tobacco
Value Share (2024)	39.8%

Strong shisha tobacco is predicted to seize a 39.80% value share in GCC countries. Surging demand for this product type is propelled by the strong perception that it is less harmful to health than regular tobacco. Additionally, the availability of many flavors is another factor that is raising sales of strong shisha tobacco.

Online Sales En Route to Override Direct Sales

Leading Sales Channel	Direct Sales
Value Share (2024)	23.5%

Direct sales of shisha tobacco remain a prominent sales channel in GCC countries as cafes, lounges, and bars continue to buy shisha tobacco to attract customers to their venues.

The online segment is however emerging to be a key performer in this segment, multiplying at a significant pace. The rapid growth of this segment can be ascribed to cheaper prices for the same quality of shisha products. Other benefits of the online sales channel include free delivery, coupons, and other exclusive offers.

Country-wise GCC Shisha Tobacco Industry Analysis

Increasing travel and Tourism Activity to Boost the Shisha Tobacco Sales in Saudi Arabia

Saudi Arabia is a significant location for the key vendors of shisha tobacco. Lounges, hotels, and cafes in this country are increasingly purchasing shisha tobacco to lure customers. This is motivating direct sales of the product, and profiting many merchants.

Another key aspect that is increasing sales of shisha tobacco in Saudi Arabia is the surging perception among tourists that the shisha tobacco available in the country is of high quality. As a result, tourists visiting Saudi Arabia pay more to shisha tobacco vendors.

Weak regulatory framework in Saudi Arabia for tobacco usage is giving leeway for the sales of shisha tobacco to tourists visiting from other parts of the globe. Additionally, strict smoking bans in public areas in Saudi Arabia are propelling sales of hookah equipment for use in household and commercial sectors.

Hospitality Hotspots in the UAE Luring Customers with Exclusive Shisha Flavors

United Arab Emirates (UAE) is expected to be profitable for shisha tobacco businesses. Proliferating trend of chewing khat in the country is expanding the industry’s size. Additionally, increasing health concerns among consumers are creating demand for herbal shisha smoking.

UAE is witnessing the opening up of new establishments that offer the best-in-town shisha menu, served alongside mouth-watering nibbles and fantastic views. Growing demand for shisha tobacco at these “insta worthy” hotels, cafes, and other food establishments is expanding the scope of shisha tobacco in the country.

Increase in Bars and Nightclubs Drives Demand for Shisha Tobacco in Qatar

Shisha tobacco sales in Qatar are predicted to increase due to the count of bars, nightclubs, pubs, taverns, and lounges. Additionally, demand for different smoking accessories, such as hookah tobacco, is improving in Qatar owing to consumers’ hectic lifestyles and rising preference for socializing.

However, campaigns to inhibit smoking and ensure a smoke-free Majlises, which is the name used for the sitting room usually located within a home to socialize, entertain, and discuss issues and events, are expected to hamper the shisha tobacco sales in Qatar.

Adolescents and Young Adults Increasingly Consume Shisha Tobacco in Kuwait

The shisha tobacco sales are surging in Kuwait, propelled by the cultural tradition of using shisha in the country. Strong influence by peers and families is a key determiner of this prevalent smoking habit. Additionally, the significant use of shisha tobacco among university students is raising prospects for shisha tobacco vendors.

Males with high incomes are the prominent users of shisha tobacco in Kuwait. Consumption of shisha tobacco is going to be influenced by mass media interventions, anti-smoking campaigns, and rising tobacco product taxes.

Easy Access to Shisha Tobacco in Bahrain to Facilitate Product Sales

Increasing sales and consumption of shisha tobacco in Bahrain is pushing product sales. Merchants are thus selling their products online to capture a young and impressionable population seeking shisha tobacco. Vendors are emphasizing easy access to shisha tobacco across the country to rope in more customers.

Competitive Landscape

Key players are strengthening their presence in GCC countries by doubling down on different business strategies. Players are launching new products across borders to increase their reach. They are further coming into partnerships and collaborating with other players to increase their visibility.

Players are introducing shisha tobacco in several flavors and aromas like fruit flavors, lavender, pistachio, mint green apple, etc. These flavors appeal to the young population, which forms a large consumer base for shisha tobacco. Participants are continuously improving the taste of their shisha tobacco products as per the customers' feedback.

Shisha tobacco vendors are now focusing on online retail channels to distribute their offerings. Since online channel eliminates the role of middlemen, players save money and sell their products at a cheaper price point to their customers, creating a win-win situation for both parties. Growing preference for online retailers is also driven by several benefits unavailable offline. These include discounts, free and quick delivery, redeemable coupons, etc.

Latest Developments that are Influencing the Shisha Tobacco Industry in GCC Countries

• In April 2023, the Tobacco Industry and Marketing Board (TIMB) of Zimbabwe licensed Cavendish Lloyd Tobacco, which is headquartered in UAE, to support and contract shisha tobacco production in the country.
• In July 2023, Air Global announced that its pod-based charcoal-free shisha, Ooka, is set to go on sale to be made available worldwide. This new launch is going to satiate the surging demand for cleaner smoking products. Air Global is expected to see many companies hopping onto the trend of cleaner alternatives to traditional hookah.

Key Coverage in the GCC Shisha Tobacco Industry Research Report

• Adjacent Study of Arabian Shisha Tobacco Industry, Middle East Shisha Tobacco Industry, Gulf Cooperation Council Shisha Tobacco Industry, Waterpipe Tobacco Industry in GCC, and Arabian Hookah Tobacco Industry
• Hookah (Shisha) Tobacco Industry Share
• GCC Shisha Tobacco Trends and Forecast
• GCC Shisha Tobacco Demand Insights

Top Companies in the GCC Shisha Tobacco Industry

• Al-Eqbal Company for Investment PLC
• Gulbahar Group
• Samara Premium Tobacco Molasses
• MSG Group of Companies
• Romman Shisha Ltd
• Middle East Tobacco Co. Ltd
• Al Zawrae Industrial Company
• Ugly Tobacco Hookah Inc.
• Eastern Tombac & Tobacco Establishment
• BMJ Industries
• Debaj Tobacco Factory L.L.C
• Royal Hookah UAE
• AL MUFASA GEN.TRD. LLC
• Others

GCC Shisha Tobacco Industry by Categories

Various Types of Shisha Tobacco:

• Strong Shisha Tobacco
• Mild Shisha Tobacco
• Light Shisha Tobacco

Segregation of GCC Shisha Tobacco Industry Based on Flavor:

• Fruit
• Chocolate
• Caramel
• Mint
• Blended
• Others

End Users of Shisha Tobacco:

• Beginner/ New Diver
• Casual Diver
• Active Diver
• Advanced/ Professional Diver

Diversification of GCC Shisha Tobacco Industry by Sales Channel:

• Direct Sales
• Hypermarkets/ Supermarkets
• Specialty Stores
• Convenience Stores
• Independent Small Stores
• Online Retailers
• Other Sales Channel

Shisha Tobacco Bifurcation in GCC by Countries:

• KSA
• United Arab Emirates (UAE)
• Bahrain
• Kuwait
• Qatar

Frequently Asked Questions

What is the Sales Valuation of Shisha Tobacco in GCC Countries as of 2024?

Sales of shisha tobacco are poised to equate to USD 1,115.00 million by 2024 end.

What is the Sales Forecast for GCC Shisha Tobacco for the Years Between 2024 and 2034?

Sales of shisha tobacco are marked to increase at 6.4% CAGR in the forecast period.

How Much Revenue is the GCC Shisha Tobacco Industry Expected to Generate by 2034?

Shisha tobacco sale in the GCC region is projected to reach USD 2,066.30 million by 2034.

Which Product Type is the Leading Segment in the GCC Shisha Tobacco Industry?

Strong shisha tobacco is prominently consumed in the GCC region.

Which Players in the GCC Shisha Tobacco Industry are Influential?

MSG Group of Companies, Romman Shisha Ltd., and Middle East Tobacco Co. Ltd. are some of the top players in the regional industry.