The market for tobacco used in shisha is predicted to reach US$19 billion in 2022 and grow at a CAGR of about 3% through 2032, according to a recent analysis by Future Market Insights (FMI). Shisha tobacco use is typically done in groups of friends and, in some cultures, is an important part of gatherings and social events. Today, college and university life are now included in this culture. Additionally, it is common for friends and family members to share water pipe use due to two reasons: first, it lowers the expense of shisha tobacco use; second, and more emotionally, it fosters a sense of brotherhood, particularly among the male demographic, and makes them feel more socially acceptable. Due to this tradition, there are now more cafes, restaurants, and lounges that offer a variety of services, including shisha tobacco services.
The spread has made water pipe smoking more widely accessible locally and encouraged young people in various nations to seek out unique neurostimulation activities. This characteristic of shisha tobacco fits in well with the rapid expansion of cafes, restaurants, and lounges around the world. The booming hotel, restaurant, and cafe (HoReCa) industry, particularly in developing nations, has coincided with the rebirth of the water pipe smoking tradition in nations like India, where young shisha tobacco use has moved beyond rural areas and into urban ones. Hookah cafes have proliferated in urban regions of affluent nations like the U.S., particularly near college campuses.
The market’s expansion is currently driven by consumer misconceptions that shisha tobacco is less dangerous than other types of tobacco use. However, the market expansion is expected to be impacted as customers become more aware of the full extent of shisha tobacco’s detrimental effects.
The aforementioned considerations are causing the shisha tobacco business to expand quickly, and as people’s awareness of health issues grows, producers are coming up with new herbal shisha tobacco products that are probably safer than traditional shisha tobacco.
Key Takeaways from the Shisha tobacco Market Study
- Strong shisha tobacco to capture approximately a prominent share in 2021. However, through 2032, demand for the light variant of shisha tobacco is expected to gain traction due to the rising awareness regarding various health concerns.
- Direct distribution of shisha tobacco is likely to generate significant revenue during the forecast period. However, with the changing purchasing preferences of individuals, online retailers are likely to hold the maximum market share by 2032.
Impact of COVID-19 on the Market
Health officials are advising the public to stay away from large groups in light of the COVID-19 epidemic, which has resulted in a growing list of event cancellations and closures. Additionally, the closing of businesses, the expansion of unemployed people, and the paucity of materials all increase the dependence of developing nations on industrialized nations.
Additionally, people develop healthy habits as a result of the trade ban, shifting personal preferences, and growing health concerns. Additionally, people, particularly millennials, had no choice due to the shuttered cafés, bars, and restaurants, which reduced demand and sales in the shisha cigarette business.
Who is Winning?
Leading shisha tobacco producers are concentrating on introducing flavors depending on regional demand and then marketing them globally to drive shisha tobacco sales globally.
Major companies operating in the shisha tobacco market include Fumari Hookah, Haze Tobacco, LLC, Tangiers Inc., Al Fakher Tobacco Trading, Japan Tobacco Inc., Alchemist Tobacco Co., Soex India Pvt. Ltd, the Middle East for Tobacco, Al-Tawareg Tobacco Molasses Company, Arabic Factory of Smoking, Al Zawrae Industrial Company, Roman Tobakko, Ugly Tobacco