Shisha Tobacco Market

Shisha Tobacco Market Outlook 2024 to 2034

As per newly released data, the shisha tobacco market is estimated at ~USD 3,049.1 Million in 2024 and is projected to reach ~USD 4,557.0 Million by 2034, at a CAGR of 4.1% from 2024 to 2034.

The shisha tobacco industry has experienced significant growth over the past decade. The increasing popularity of shisha bars and lounges, along with a growing demand for flavoured tobacco products, has contributed to the expansion of the market. Shisha tobacco is often available in a wide range of flavours, including fruity, herbal, and dessert flavours, which attract a diverse consumer base.

Attribute	Details
Current Shisha Tobacco Market Size (2023A)	~USD 2,909.4 Million
Estimated Shisha Tobacco Market Size (2024E)	~USD 3,049.1 Million
Projected Shisha Tobacco Market Size (2034F)	~USD 4,557.0 Million
Value CAGR (2024 to 2034)	~4.1%
Shisha Tobacco Market Top Players Share in 2023	~25%-30%

Key Points Covered in Shisha Tobacco Market Survey

• Market Estimates and Forecast 2019 to 2034
• Key Drivers and Restraints Impacting Market Growth
• Regional Analysis, Segment-wise, and Country-wise Analysis
• Competition Mapping and Benchmarking
• Brand share and Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Global Shisha Tobacco Market and How to Navigate
• Recommendation on Key Winning Strategies

2019 to 2023 Shisha Tobacco Market Outlook Compared to 2024 to 2034 Forecast

The rising trend of newly added flavours in hookah along with the increasing acceptance of hookah tobacco in various theme-based restaurants, lounges, and cafes is fueling the shisha tobacco market growth.

The shisha tobacco industry, also known as the hookah or water pipe tobacco industry, revolves around the production, distribution, and consumption of flavoured tobacco that is smoked through a water pipe. Shisha smoking has a long history and is popular in many regions of the world, particularly in the Middle East, North Africa, and parts of Asia. In recent years, it has gained popularity in other parts of the world as well.

Major players in the market manufacture various types of shisha tobacco products by understanding market needs properly, these types include strong shisha tobacco, mild shisha tobacco, and light shisha tobacco. This variety of shisha tobacco products is pushed towards customers through various sales channels.

In the sales channel segment, the direct channel bypasses traditional methods of sales such as retail outlets. In direct channels, products are sold in bulk directly to end users such as cafes, lounges and restaurants. The indirect channel generally involves middlemen such as specialty stores, convenience stores, and independent small stores, in the supply chain, hence they are indirectly sold by manufacturers to the end consumers.

Key Dynamics in the Global Shisha Tobacco Market

“Consumer Misconception about the Harmful Effects of Water Pipe Smoking Leading to Product Sales”

Consumers in many regions are opting for water pipe smoking in a bid to cut down on cigarette smoking. There is an immense lack of awareness among consumers about the harmful effects of shisha tobacco smoked through water pipes because shisha tobacco smoking is more injurious to health than cigarette smoking. This misconception is prevalent among the demography, who both, smoke and do not smoke.

The most common logic that buttresses this misconception is that water absorbs most of the nicotine during shisha tobacco smoking, which consequently makes it a safer alternative to cigarette smoking. However, this misconception is the major reason that shisha tobacco is witnessing global growth, despite the downward spiral of the tobacco industry.

“Evolving Consumer Preferences”

Consumer preferences within the shisha tobacco market are constantly evolving. Consumers seek diverse flavours, unique experiences, and innovative products. Manufacturers and brands respond to these preferences by introducing new flavours and product variations. For instance, brands like Starbuzz have introduced unconventional flavours such as Blue Mist and Pirates Cave, appealing to adventurous consumers.

“Sensory Appealing Characteristics of Shisha Tobacco Driving the Demand”

A wide variety of flavours offered in shisha molasses makes these products very indulgent and sensory-appealing to consumers. For addictive smokers and those willing to give up on smoking, flavoured shisha tobacco remains a very attractive and innovative product.

Besides, the apparatus in which the shisha tobacco is smoked is also one of the key reasons why consumers want to try the shisha tobacco smoking experience. Further, visually attractive water pipe smoking or the hookah apparatus is also responsible for gaining a wider consumer base for shisha tobacco sales.

Country-wise Insights

How is the Target Market Faring in the USA?

“Companies Offering a One-stop Shopping Experience in the USA to Boost the Demand for Shisha Tobacco”

North America is expected to remain one of the key markets accounting for the majority of market share. The USA held the largest market share in 2023 owing to the presence of various manufacturers of shisha tobacco in the country such as Fumari Hookah, Tangiers Inc., and others

Moreover, the companies are progressively diversifying the shisha tobacco product line like coal, hookah, hookah parts, and flavours, which provides the customer with a one-stop shopping destination for smoking products. Such strategies help companies expand their customer base and attract investors from all around the world.

How is the Introduction of the Regional Flavours Impacting the Target Market in the UK?

“Introduction of Regional Flavors to Suit Consumer Preferences in the UK to Grow Sales”

The UK market for shisha tobacco is expected to rise at an impressive growth rate attributed to the growing demand for the introduction of local varieties of flavours in the shisha tobacco market. This will further, help manufacturers to gain popularity among a wider customer base and create a new opportunity for large and introductory markets.

Moreover, it witnessed that customers feel attracted more towards novel flavours if they can relate to them, hence, alternatively resulting in growing sales in the country.

Will China’s Demand for Shisha Tobaccos Continue to Grow?

“Growth of the Tourism Sector in the Country to Boost the Shisha Tobacco Sales”

Shisha tobacco sales in East Asia are expected to register a CAGR of approximately 9.2% from 2024 to 2034, with China being the largest revenue contributor to the market in the region. The highly developed tourism sector attracts a large number of individuals to the country every year and thus, café and restaurants are likely to contribute majorly towards the market.

Moreover, the strict laws in the country do not allow individuals to smoke in public areas which in turn will promote the sales of hookah equipment for both residential and commercial sectors (café, bars, and restaurants), leading to the growth of the shisha tobacco industry.

Category-wise Insights

Which Product Type is Expected to Dominate the Shisha Tobacco Market?

“Introduction of New Flavours and Essences to Boost the Product Sales”

In terms of product type, strong shisha tobacco is likely to hold a notable share, attributed to the rise in the number of customers opting for smoking shisha tobacco instead of cigarettes. As players in the industry are innovating the product line and adding new flavours and essences under the strong shisha tobacco portfolio, the demand for the product is also, coping respectively.

Which Flavour of Shisha Tobacco holds the Maximum Share in the Market?

“Fruity Flavour is the Preference of a High Number of Consumers in the Market”

Based on flavour, fruit-flavoured shisha tobacco is considered as the most liked flavour in the market. Under the fruit flavour segment, the citrus flavour category will witness high adoption and thus, a growing demand, especially due to its popularity among the millennials. Moreover, for the manufacturers in the market, this trend could open up potential innovation in the coming years.

Why are Convenience Stores Preferred by Consumers?

“The Facility of Discounts and Convenience Leading to Increased Adoption”

In terms of sales channels, convenience stores are still prominent accounting for a notable share in 2023. This is because convenience stores offer options such as discounts and the convenience of instant satisfaction.

Further, the convenience provided by these stores is likely to boost market growth. However, due to the closure of retail stores during COVID-19 lockdowns, the market has witnessed an increase in the use of e-commerce websites. Amid the pandemic, market participants used this opportunity to strengthen their presence through online channels.

Competitive Landscape

Major players are focusing on different business strategies, such as mergers & acquisitions, collaboration & partnerships, geographical expansion, and new product launches to expand their presence in the target market.

• In 2023, Al Fakher, one of the biggest shisha tobacco producers has actively tried to expand its reach by working with many distributors and retailers worldwide. They have also partnered with flavour companies to produce new and unique flavours that will retail to various customers.
• Nakhla has been diversifying its market from the geographical aspect by penetrating new markets in Asia and Europe. There are new factories and distribution centres established in these areas to meet the demand of the legal shisha tobacco market.

Scope of Report

Attribute	Details
Forecast Period	2024 to 2034
Historical Data Available for	2019 to 2023
Market Analysis	USD Million for Value
Key Regions Covered	North America; Latin America; Europe; East Asia; South Asia; Middle East and Africa (MEA); and Oceania
Key Segments Covered	Product Type, Flavor, Sales Channel, and Region
Key Companies Profiled	FUMARI; Haze Tobacco; Al Fakher Tobacco Factory; SOCIALSMOKE; Japan Tobacco Inc.; SOEX; Prince Molasses; Romman Shisha; Mazaya; Ugly Hookah; Cloud Tobacco; Flavors of Americas S.A.; Al Amir Tobacco; STARBUZZTOBACCO; Nakhla; MujeebSons; Godfrey Phillips India Ltd.; The Eastern Company; ALWAHA-TOBACCO; Others (As per Request)
Report Coverage	Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing	Available upon Request

Global Shisha Tobacco Market by Category

By Product Type:

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

By Flavor:

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

By End User:

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

By Sales Channel:

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

By Country:

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Middle East and Africa (MEA)
• Oceania

Frequently Asked Questions

What is the current market value of the shisha tobacco market?

The global shisha tobacco market reached a valuation of USD ~ 2,430.4 Million in 2023.

At what rate is the global shisha tobacco market expected to grow between 2024 and 2034?

The global shisha tobacco market is expected to grow at a sluggish ~4.1% CAGR between 2024 and 2034.

What are the key trends driving shisha tobacco sales?

Social media remains a compelling factor, flavoured hookah attracts youth users, urban consumers have taken to the consumption of neuro-stimulants to project a modern social status, strong research on substance abuse, and harmful aspects of products, are the trends driving the shisha tobacco market.

Who are the leading players in the global shisha tobacco market?

Leading players operating in the global shisha tobacco market are FUMARI; Haze Tobacco; Al Fakher Tobacco Factory; SOCIALSMOKE; Japan Tobacco Inc.; SOEX; Prince Molasses; Romman Shisha; Mazaya; Ugly Hookah; Cloud Tobacco; Flavors of Americas S.A.; Al-Amir Tobacco; STARBUZZTOBACCO.; Nakhla; MujeebSons; Godfrey Phillips India Ltd.; The Eastern Company; and ALWAHA-TOBACCO among others.

What is the market share of the leading players operating in the shisha tobacco market?

Leading players in the global shisha tobacco market are estimated to account for approximately ~25-30% of the total market share.